The 2021 East Bay real estate market was among the strongest ever recorded. Right out of the gate, the pandemic drove demand into hyperdrive as buyers left San Francisco in droves in their search for more space: "Zoom rooms" and backyards -- all things the East Bay offers.
In a typical year, some homes hit the market and either sit or never sell. In 2021, spurred by job growth and low interest rates, buyers purchased inventory at a record pace, even with new inventory increasing 8%. As a result, single family home sales increased 32% vs. 2020, the most sold since 2009.
Even with the increased inventory, it was not enough to meet buyer demand. This drove median price to $1,007,500, the highest ever recorded and a year-over-year increase of 15%. East Bay prices have increased in 21 of the past 24 years.
Other key metrics reflected strong buyer demand, with homes selling an average of 17.6% over list and staying on the market an average of 17 days, both record breakers for the East Bay.
It is reasonable to assume that the forces that drove the 2021 market will remain in effect for 2022. At the beginning of the year, expect inventory to remain low, even as buyers are hungry for listings. As a result, the limited number of properties will drive intense competition. This is consistent with previous years but will likely be particularly strong this year given A) the number of homes for sale at the beginning of 2022 is the lowest ever recorded B) buyers may move quickly to take advantage of low interest rates, which are projected to increase this year.
It is reasonable to expect that buyer demand will remain strong throughout 2022, driving up prices and competition, particularly among the most attractive properties. While there may be few if any "deals" to be had, buyers should work closely with their agent to set expectations and reach their goals.
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