While other areas of the economy have suffered because of the pandemic, real estate has remained strong and will likely continue to be a good investment in 2022.
However, the demand was not even across all forms of housing, according to Jordan Levine, California Association of Realtors (CAR) chief economist. People were looking for larger homes in the suburbs that would give them more space for remote work and at-home leisure activities. Another important reason why single-family suburban real estate continued to do well is because of the types of buyers in the market. These buyers tended to be professionals in the tech sector who could afford larger homes.
These facts help to show why Los Altos has been a very competitive market for home buyers and a good market for sellers. As a beautiful suburb located close to the tech sectors of San Francisco and the Silicon Valley, this community has everything that motivated buyers are seeking.
Now that the pandemic is winding down, are homes for sale in Los Altos still a good investment?
The Market in 2022
Although offices have reopened, remote work is still a strong factor in the high-tech sector and likely will remain so. Workers are demanding more flexibility, and competitive companies will want to offer at least some remote work as a “perk” to attract good candidates.
Another factor impacting demand for homes is limited supply. Currently California is considered a sellers’ market which means there are more interested buyers than homes for sale. A real estate agent can help you find the right home and make a good offer to ensure a successful purchase. On the other hand, if you have a house for sale in Los Altos, CA, the current situation may benefit you as you will likely attract multiple buyers making offers at or above list price.
Why is now a good time to buy?
Currently, mortgage rates are at historic lows, around 3.1%, but they are expected to rise around .5% over the next year. Buying now would allow you to take advantage of these rates while they are available.
Secondly, although we likely won’t see the same jumps in home prices that we saw in 2021, real estate prices are expected to continue to rise more moderately meaning your house will be a good investment for the future.
If you are interested in Los Altos, CA, homes for sale, contact a real estate agent to explore your options.