Buying a Home in the East Bay in 2022: Here’s What You Should Know

Are you planning to buy a home in the East Bay region sometime during 2022? Wondering what to expect in terms of real estate market conditions, price and competition?

You’re in the right place! Below, we’ve provided a roundup of current housing conditions to help you prepare for buying a home in the East Bay in 2022.

Buying in the East Bay: A 2022 Market Update

The San Francisco Bay Area real estate market remains highly competitive in 2022. This is due to a combination of record-low inventory levels and steady demand from buyers. And the East Bay region, mainly comprised of Contra Costa and Alameda counties, is no exception to this.

Here are five things you should know when buying a home in the East Bay in 2022.

1. The real estate market is still very competitive.

Spoiler alert: The East Bay housing market will remain highly competitive for the foreseeable future. There are several reasons for this, and we’ll cover them throughout this article.

The short version is that an ongoing supply-and-demand imbalance is forcing home buyers to compete fiercely with one another. In some cases, this can cause bidding wars to erupt, while also driving up home prices. More to follow on that!

2. East Bay home prices are still rising.

Home prices within the East Bay housing market (Contra Costa and Alameda County) continue to climb, moving into 2022. In fact, both counties experienced strong double-digit price growth over the past year.

According to Zillow, the median home value for Alameda County, California rose by more than 17% over the past 12 months alone. When this article was published in mid-January 2022, the median price was around $1.3 million and rising.

In neighboring Contra Costa County, the median house value shot up by more than 20% over the past year, landing at $908,000. Again, that’s based on data provided by Zillow.

Forecasters predict that prices will continue to climb in 2022, though possibly at a slower pace. If you’re planning to buy a home in the East Bay in 2022, you might want to consider doing it sooner rather than later. Postponing your purchase until the latter part of the year might mean that you end up paying more.

3. Housing inventory remains tight.

The East Bay real estate market continues to suffer from very low inventory levels. Plenty of buyers seeking homes — not enough properties to go around. This is largely why prices rose so much during 2021.

According to a report published last month by the California Association of REALTORS, both Contra Costa and Alameda counties had about a one-month supply of homes for sale. That indicates a seller’s market and partly explains why the East Bay housing market is still so competitive in 2022.

These days, buying a home in this region requires patient and persistence. It also helps to make a strong offer, when the right house comes along.

4. Homes are selling fast, due to item #3.

Given everything we’ve covered so far, it should come as no surprise that houses sell quickly in the East Bay.

Recent data show that most houses listed for sale within Contra Costa and Alameda counties are off the market within two weeks. That means they’re getting snatched up quickly by eager buyers.

This underscores the importance of making a strong offer that’s based on current sale prices. In a fast-moving real estate market like the East Bay, home buyers who attempt to “low-ball” the seller tend to lose out altogether.

In fact, you might even find yourself in a situation where other buyers are offering more than the list price. So let’s talk about that trend next.

5. Most houses are selling for more than the list price.

As of December 2021, well over half of all homes sold in Alameda and Contra Costa County went for more than the list price. This is what happens when there are more buyers than there are properties for sale. You end up with bidding competition and offers above the list price.

Toward the end of 2021, the percentage of homes selling above the list price rose as high as 70% within the East Bay housing market. That figure could come down in 2022, especially if the local real estate scene cools a bit. But it’s a safe bet that we’ll continue to see a lot of houses selling above the original asking price.

Need a home loan? Bridgepoint Funding has served the East Bay area for nearly two decades. We offer a full range of mortgage loan products, including conventional, FHA, VA and jumbo. Please contact us if you have mortgage-related questions or to apply for a loan.