REAL ESTATE NEWS
A housing crash is unlikely, but a correction could be around the corner. Here’s the difference.
- Talk of a likely housing bubble has intensified amid surging housing costs.
- As buyers grapple with rising rates and home prices, demand has begun to wane.
- The housing market is showing signs of cooling — but a housing crash is unlikely.
Speculation about a possible housing bubble has taken full bloom this spring homebuying season.
And talk of bubbles inevitably leads to the question of whether the bubble will pop with a crash or more gently ease back to earth in a modest correction.
As the Federal Reserve’s decision to raise interest rates from their near-zero levels propels mortgage rates to a twelve-year high, it’s put additional pressure on housing costs. With housing affordability sitting at a decade low, the homebuying frenzy that rocked the real estate market is beginning to fizzle — and that means a larger shift is looming.
Waiting For the Next Housing Crash?
Zillow’s estimates are very positive for future home prices.
In the year 2000, the average home price was $126,000. By 2020, the average home price had increased to $259,000, a 106 percent growth that occurred within less than a generation. What’s staggering about this increase in home prices is how quickly the market rebounded after the 2008 housing crash. Many current first-time homebuyers were reaching adulthood during the Great Recession and they remember how hard it was to find jobs and for their parents to sell their homes.
The life experience of living through a housing crash is driving some people to wait on buying. The housing market goes up and down, and some people want to take advantage of the next housing bubble to enter the market at a more affordable price.
However, they may be waiting a long time. The market is a long way away from experiencing a correction and some housing costs are going to keep rising higher than ever. Here are a few reasons why housing demand is going to continue to increase and keep home prices high.
America is Short More than 5 Million Homes
Like any market, housing follows the basic economic rules of supply and demand. When supply is low and demand is high, housing prices increase. In 2008, the supply was high as homes were foreclosed on and demand was low as no one could afford them. This caused housing prices to drop.
Right now, there is a significant lack of supply, which is caused by many factors. First, home construction is running at its slowest pace in decades. In 2012, there were 12.3 million homes constructed. In 2021, there were only seven million. Supply chain issues and the pandemic prevented new home construction, limiting the number of houses available.
25+ Housing Market Predictions for 2022-2026
[Is the Crash Coming?]
By: Kathy Fettke, co-founder of RealWealth
Top 14 housing market predictions for 2022 are:
- The unemployment rate will stay low
- Job openings will continue to be over 10 million
- Inflation will remain higher than the Federal Reserve’s target of 2%
- The Federal Reserve will try to fight inflation by raising rates at least 3 times
- Mortgage rates will be over 6%
- Home prices will continue to climb, albeit at a slower pace
- There will be a slight uptick in mortgage defaults
- More people will choose adjustable-rate mortgages
- Lending requirements will become tighter
- More people will choose to live remotely to lower their housing costs
- The suburbs and exurbs will become more expensive
- The number of renters and rental prices will rise
- Due to the November elections, there will be no real changes in taxes
- Investors will flock to real estate stocks
Ralene Nelson, REALTOR®
FOR SALE – 30 S 2nd St. Rio Vista, Residence and Commercial Building
Asking $699,500 – Are you looking for a home and in need of a business space? Or perhaps a home with a possibility of in-law quarters? This home might meet those requirements. Victorian style home with partial wrap-around porch provides a cozy place for morning coffee or afternoon beverage. 2 bedrooms up with 1.5 baths on the main floor. The possible room upstairs to add at a minimum 1/2 bath. Laminate flooring on the main floor with carpeted stairway & in bedrooms. HVAC & tankless water heater with inside laundry. 2nd building has been used as a commercial, however, could be added onto & remodeled to be ADU/2nd unit. READ MORE
FOR SALE – 13 Amador Cir, Rio Vista, 4bds/2.5bths/1,989sq.ft.
Asking $725,000 – Your beautiful dream home is on the market!! This remodeled home has a newer kitchen & baths, saltwater pool, spa, and gorgeous bbq kitchen with bar/firepit, refrigerator, ice maker & more. RV parking for 2, so your ski boat & RV will fit in the RV garage. The garage is equipped with sewer connection & electricity. Sliding doors open up to the pool area. Home is 3 bedroom, can be 4, & 2.5 baths. The master sitting area was the 4th bedroom, so can be closed off. The Master bath has double sinks, a walk-in shower, and a bidet & master bedroom have a large deck with views of the N hills. A spiral staircase off deck takes you to the pool area. The family room has an entertainment bar w/refrigerator & sink. Step out to the backyard to a swimming pool with solar heating, BBQ kitchen with all the amenities, an outdoor shower w/tankless water heater, and a stage for a band. No rear neighbors. The home also has a double-car garage as well, with indoor laundry. READ MOR&
PENDING SALE – 2259 Revival Ln, Rio Vista, 2bd/2bth/1837sf
PRICE REDUCED – $555,000, Located in the new active adult community, Summit at Liberty, the Lincoln model is bright & cheery, shows like a model home. Professionally landscaped with drip system & low maintence, so just bring your furniture. Very private for lot is fenced. The Lincoln model is a 3 bedroom 2 bath home with a room that can be used as formal dining, den or as seller, combo den/office. Laminate flooring throughout, blinds & custom paint. Granite kitchen counters, stainless sink & appliances with bar for dining. The pantry is large so will delight your chef. Seller has replaced ceiling fans and has installed ceiling fan in the patio area. Comes with paid solar. The amenities are beautiful, pool, large spa, bocce ball courts, pickle ball & tennis courts & even a wine bar area. READ MORE
PENDING SALE – 670 Rubier Way, Rio Vista, 4bd/2.5bth/1859sf
Asking – $545,000. This popular 2 story home in Rio Vista’s family development, Homecoming, is a move in ready home. Exterior & interior have new paint including all cabinets (kitchen & baths) & railings/staircase. Laminate flooring in living/dining & family rooms with a tiled kitchen. Fireplace in family room makes a cozy room in the cooler months. Carpet upstairs, with laminate in master bedroom. Master bedroom has his/her closets, double sinks in bath & cabinets are painted. Hall bath also has painted cabinet. Front bedroom is utilized as their classroom, it is a nice size bedroom with walk-in closet. No rear neighbors makes the backyard very private for BBQ’s. Home is equipped with car charger for your electric car! Just bring your furniture. READ MORE
PENDING SALE – 470 Belvedere Dr. Rio Vista
Asking $575,000 – Located in the Active Adult Community, Trilogy, this beautiful Reflect model, with a larger lot, has been professionally landscaped with paver stone patio and walkway on side of house. Artificial turf side yard, & piped electricity to BBQ area. The backyard is a beautiful area for entertaining your family & friends. Close to the dog park, and there’s path around the lake. This 2 bedroom 2 bath home has granite counters with expresso cabinets, convection microwave & oven, and island. Tile throughout with carpet in bedrooms. Laundry has space for additional refrigerator/freezer & garage has a utility sink. Water softener & water filtration system under kitchen sink. Just bring your toys and enjoy the activities that include 2 swimming pools/spas, tennis & bocce courts, 18 hole golf course, & more while enjoying a low HOA fee. READ MORE
JUST SOLD – 130 Adrian Ct. Vacaville
Updated home located in the Alamo Creek area is 3 bedroom/2 bath, you do no want to miss. Quiet cul de sac, Alamo Creek jogging trail, close to schools & shopping. This home screams pride of ownership. Since the purchase in October 2021, the exterior & interior have new paint, all new lifetime warranty dual pane windows & sills, an updated kitchen with new refaced cabinet painted doors & hinges, copper sink, heat resistant solid surface counters, new microwave & smart refrigerator. A custom-made rolling counter provides your chef with extra prepping space. New lighting fixtures enhance & update the home. The seller has decorated the family room to be Sherlock Holmes Library with custom bookshelves & mantle, and the electric fireplace provides the ambiance. Decorated in farmhouse theme w/paint & updates. The New 7×7 shed provides extra storage. HVAC was replaced in 2019. 10 minutes to TAFB, 5 minutes to Vacaville Nut Tree Outlets, Vaca Penne Middle School, Alamo Creek trail for walking, biking & jogging. READ MORE
Events in Northern California this Week-End
Fri, May 6, 8 PM – Sun, May 8, 4 PM
El Campanil Theatre, 602 W 2nd St, Antioch, CA
Charles Dickens’ novel Oliver Twist comes to life in this Tony and Oscar Award-winning musical about an orphan boy on his quest to find love and family in Victorian England. Oliver! features a number of Broadway classics, including “Consider Yourself” and “As Long As He Needs Me.” Rousing production numbers, unforgettable characters, and a riveting storyline make this show a must-see examination of our universal longing to discover where we belong. READ MORE ~ BUY TICKETS
Mother’s Day Event
Hannah Nicole Vineyards in Brentwood
Sun, May 8, 12 – 5 PM, 6700 Balfour Rd, Brentwood
Come out and Celebrate Mom in Style at Hannah Nicole Vineyards & Winery with our 3rd annual Mother’s Day Paint Party! Celebrate Mom by bringing the whole family to this event! Enjoy the food trucks, live music and of course…wine! Bring folding chairs and a blanket for the perfect afternoon picnic and of course a super fun paint party because let’s face it…. Mother’s Day brunch is soooooo last year!
This is a family friendly event. We recommend kids ages 7 and up to join in on the paint fun! This year we will be painting a customizable painting on an 18″ WOOD MASON JAR CUTOUT! We will show you how to paint a variety of flowers and you can make the top say whatever you wish! Price includes the wood paintable and the two-hour instruction.We will have two shows. Pick either the 12pm show or the 3pm show. “doors” open to save your seats 20 minutes prior to event start time. WE DO NOT SAVE SEATS.Both of these events always sell out so don’t delay! Grab your tickets soon!Music will be by Mirage Band
Gem Faire in Sacramento
Sunday, May 8, 2022 at 10:00 a.m.
Scottish Rite Center, 6151 H Street, Sacramento
$7; Children 11 & under Free
Gem Faire is one of the largest gem, jewelry and bead shows in the United States. With nearly 50 shows a year, Gem Faire brings to the west coast, and some areas of the Midwest, quality gems, beads, crystals, minerals, findings and earth treasures directly to your town. Gem Faire vendors offer quality merchandise at manufacturers’ prices. You’ll discover fine jewelry, costume jewelry, precious and semi-precious gemstones, millions of beads, sparkling crystals, gold and silver, tools, jewelry supplies and boxes all under one roof! Gem Faire dealers are direct importers, wholesalers and manufacturers so you are buying from the source! Be sure to enter for a chance to win cool prizes at every Gem Faire location, drawing every hour.
2022 San Joaquin Asparagus Festival
Sun, May 8 12:00 PM
San Joaquin County Fairgrounds, 1658 S. Airport Way. Stockton