What’s going on in California real estate? Here is the latest housing market report for Walnut Creek, California. (as of February 26, 2022)
Median List Price
This week, the median list price for houses in Walnut Creek is $1,597,000. On November 5, 2021, the median list price was $1,380,000. Currently, the Market Action Index (MAI) is 94. (The Market Action Index illustrates the balance between and demand looking at the current rate of sale versus current inventory).
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
The time it takes to sell a home in Walnut Creek has fallen dramatically: On November 5, 2021, it took an average of 18 days to sell a home. On February 18, 2022, homes sold in only 2 days. Home sales continue to outpace supply, which indicates the housing market is still strong.
The number of homes available for sale has steadily decreased:
|Date||7 Day Moving Average||90 Day Moving Average|
A lower supply of houses along with high demand could cause median list prices to continue rising.
The housing market in Walnut Creek and across the country continues to look strong. While no one can predict the future, the following events could have an impact on the housing market in 2022:
- Tax Code Changes. A change in tax codes could impact the housing market. Currently, the Biden administration is discussing plans to increase the types of income that would be subject to a net investment income tax.
- Increase in house flipping. House flipping rates remain low in the U.S. An increase in house flipping is believed by some to be a sign of a potential real estate crash. ATTOM, a market-leading provider of real estate and property data reports house flipping increased slightly to 5.7% in the 3rd quarter of 2021, rising from 5.2% in the 3rd quarter of 2020.
- Affordable housing rates. In September, California Governor Gavin Newsome signed a $22 billion dollar housing affordability and homelessness package. 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
- Interest rate hikes. In March 2022, the Federal Reserve is expected to raise Interest rates. 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.
- Buying habits of millennials. Born between 1981 to 1996, millennials make up 25% of the US population. Many millennials have not purchased their first home: a big reason for this is the inability to make a large down payment on a home while simultaneously paying student loan debt and high rents.
The Bottom Line
The real estate market in Walnut Creek remains strong. The demand for housing is high 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 in 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.