Brave Leaps Forward: What’s In Store For 2022?

First off, give yourself a pat on the back for making it to 2021.

On the calendar, 2021 was just another year. But a grid with some numbers on it can’t speak for the hardships you went through over the course of 12 months. You weathered food shortages, economic instability, a Greek alphabet soup of COVID variants — and on the homeowner side of things, rollercoaster interest rates and a housing market that couldn’t decide whether it was on fire or taking a nap in the freezer. A round of applause to you, and then another for the family and friends who made it all possible.

With that out of the way, let’s look at what 2022 has in store for us.

Now, if you’ve been following our blog, you’ll know that we don’t like to give hard predictions on upcoming trends in the housing market. We prefer to present what might be coming up based on analysis from the experts. If there’s one thing the previous year taught us (or really, reminded us of), it’s that even the most seasoned housing market analysts are sometimes a little off in their predictions. Top government economic advisors, for example, teased an end to the cushy mortgage rates that we grew accustomed to, but those are still sticking around. It’s not necessarily that the Fed lied to us, but that persisting circumstances (COVID) prolonged the Biden cabinet’s plans to buttress the housing market.

So what do we know about housing? Just the other day, the State of California implemented the California Mortgage Relief Program, a $1 billion safety net for low-to-middle income homeowners. While this may not affect the luxury homeowners of cities like Laguna Beach, it’s comforting to know that there’s a system in place to help those who might be struggling to keep up on their mortgages during the current winter COVID-19 outbreak. Those interested in applying for the program can do so here.

Now for a bit of less rosy news: mortgage rates are projected to continue rising. According to Daryl Fairweather, Redfin’s chief economist, these rates may grow to 3.6% by the end of the year. Other analysts, like Dr. Lawrence Yun, chief economist at the National Association of Realtors, the rate could be just 3.5%. Still others at Realtor.com and Bankrate predict rates of up to 3.75%. Of course, this is all before unforeseen economic fluctuations are taken into account.

The good news? Mortgage rates will still be at an all-time low. Historically, mortgage rates typically rise when the economy is looking peachy. If so, a rising mortgage is actually a positive development, though this outlook doesn’t consider why the mortgage rates are rising. Median house prices in Southern California rose by about 16% to $693,00 in just 12 months by last November. A silver lining for those looking to list their house on the market, perhaps?

If you are indeed looking to sell your home and you live in Laguna Beach, contact Cary Glenn at Main Beach Realty in Laguna Beach, CA. With 20 years of experience buying, selling, and refurbishing luxury real estate in and around Laguna Beach, Cary Glenn will work closely with you to help you find a solution that works best for you.