I’d like to wish everyone a Happy New Year and welcome to 2022! I’d also like to congratulate all of our newly appointed City Mayors. We look forward to continuing to work together to keep housing a priority and a successful part of our local economy.
2021 ended with solid numbers for our area. We had an increase of over $65 Million in transaction volume from the previous month and over $114 Million from December 2020.
The median home price in Southwest Riverside County had a slight increase of 3% from a month ago ($565,000/$550,000), was up 22% from a year ago ($465,000), and up a staggering 45.2% from 2 years ago ($389,000). Unsold inventory is still hovering near 2 months (6 months is considered a healthy market), and days on market dipped slightly to 10 days, up from 7 days last year but still significantly lower compared to 31 days 2 years ago. Unit sales are up 9% from the previous month and down 8% from last year. Inventory dropped by 26% from last month but is still up 26% from this time last year. Southwest Riverside County is still presenting solid numbers across the region. Median prices are up in all of our local cities, ranging in an increased range of 14.3%-33.6% Year-Over-Year.
As we look to 2022, it’s very much of the same conversation. Inventory remains a challenge, and prices continue to increase, although the pace of increase might slow a bit. There have been forecasts and recent talks of interest rate hikes. This will impact the purchasing power for buyers, even with the recent increase in loan limits. As I’ve mentioned before, if you’re considering purchasing, you may want to take advantage of the current rates while you can.
We will also have an extremely busy 2022 on the legislative front. There’s no shortage of activity to watch between an election year, new Congressional, State, County, and City District Maps, and many proposed ballot initiatives. Rest assured that we constantly keep an eye on real estate and private property rights issues and continue our relationships with our elected leaders.
Again, welcome to 2022. Buckle up; it could be an interesting ride!
If you’d like a copy of my entire report including the mentioned slides, or to be added to the distribution list, please email me at Adam@srcar.org.
As always, I am available if you have any questions about the report. Until next month…