What’s going on in California real estate says a Livermore Realtor? Here is the latest housing market report for Salida, California, dated February 19, 2022.
Median List Price
Average Days on the Market
The Bottom Line
Median List Price Presented by Livermore Realtor
For the past 2 years, the median price of homes in the Salida area have steadily increased:
- For the week of August 19, 2022, the median list price for homes was $499,450.
- For the week of August 19, 2021, the median list price was $499,450.
- For the week of August 14, 2020, the median home price was $479,950.
The market action index (MAI) is 63, seven points less than the September market action index of 70. An MAI value greater than 30 is often considered a “Seller’s Market” or “Hot Market.” Prices tend to rise in Hot Markets, while prices tend to fall in “Buyers Markets,” also known as “Cold Markets.”
Average Days on the Market
In the past 12 months, the time it takes to sell a home in Salida has more than doubled: The 7-day average as of August 19, 2022, is 38 days. On August 13, 2022, the 7-day average was 15 days. However, this is still lower than the August 2020 average of 43 days.
The number of homes available for sale has remained relatively steady:
|Date||7-Day Moving Average||90-Day Moving Average|
The housing market in Salida and across the country continues to be brisk. While no one can predict the future, the following events compiled by Livermore Realtor could have an impact on the housing market in 2022:
- Affordable housing rates. In September 2021, California Governor Gavin Newsome signed a $22 billion dollar housing affordability and homelessness package. In addition, he has signed a total of 31 affordable housing bills that will lead to the creation of 84,000 new housing units and help eliminate homelessness.
The goal of the legislation is to create more affordable housing faster and cheaper:
“These bills, plus this year’s historic budget investments in affordable housing, will directly lead to more inclusive neighborhoods across the state. Creating denser housing near jobs, parks and schools is key to meeting our climate goals as well as our affordability goals.” Governor Newsome
- Millennial buying habits. Born between 1981 to 1996, the 45 million millennials make up 25% of the US population and are the prime demographic to purchase homes. However, millennial home ownership is at record lows in the United States for several key reasons:
- High student loan debt
- More income spent on rent
- Homes are less affordable
Each of these factors make it difficult for millennials to save enough money for down payments on a home, reports Livermore Realtor.
- House flipping rates. In the first quarter of 2022, Attom Data Solutions reports house flipping spiked across the US, with one in 10 homes being flipped. A total of 114,706 single-family houses and condominiums were flipped, which was the highest number since 2000. This was the fifth straight quarterly increase, but profits dropped to a 13 year low.
An increase in house flipping is believed by some to be a sign of a potential real estate crash.
- Interest rate hikes. During its July 2022 meeting, the Fed raised interest rates by 75bps to 2.25%-2.5%. This was the 4th consecutive rate hike, which pushed borrowing costs to the highest level since 2019. Inflation will be used as an “active tool” used by the Fed to keep inflation in check. Higher interest rates could reduce the number of homes being built and decrease the number of homes available for sale in the market.
The Bottom Line
The demand for housing in Salida remains strong. Housing prices have increased while inventories remain low. While the trends favor sellers, there are many factors that could cause a correction in the housing market: Rising interest rates, lack of affordable housing, millennial buying habits and higher inflation are all important factors that should be watched as we near the end of 2022.
Are you looking to buy or sell your property in East Bay? Need help determining your next move? Here at Range Homes we have a team of motivated agents dedicated to putting your needs first. Our mission is to get you the best deals & offers, and help you buy (or sell) your home. For assistance with your real estate transactions during these challenging times, Range Homes is here to help. Reach out to our team today by clicking HERE.