We Could See More Homes for Sale in the Bay Area in 2022

Ask someone who recently purchased the home in the San Francisco Bay area what the biggest challenge was, and they will probably say finding a house to buy. Record-low inventory levels within the local real estate market have made things challenging for buyers.

But there appears to be some good news on this front. A recent report showed that there are more homes for sale in the Bay Area, particularly when measured by the number of new listings. A related survey showed that an increasing number of homeowners are planning to list their houses for sale over the coming months.

As a result of these trends, we could see more homes for sale across the San Francisco Bay Area later in 2021 and into 2022.

More Homes Coming Onto the Market in the Bay Area

On July 1, the research team from Realtor.com published a housing market report with data through the month of June 2021. This report offered insight into nationwide real estate market trends, and also provided details for the nation’s 50 largest metro areas.

Their report showed a significant increase in the number of new real estate listings from May to June 2021, and also over the past year. According to Realtor.com, new listings nationwide rose by 10.9% from May to June of this year. New listings were up by more than 5% when measured year over year.

Some metro areas experienced an even bigger increase in the number of new real estate listings. In the San Francisco-Oakland-Hayward metropolitan area, new listings rose by around 15% from June 2020 to June 2021. So there appear to be more homes for sale in the Bay Area, when measured by the number of newly listed properties.

According to George Ratiu, the senior economist for Realtor.com:

“Although there’s still a significant shortage of homes for sale and home prices just hit a new high, our June data report shows good news on the horizon for buyers.”

Will We See More Houses for Sale in 2022?

In related news, a recent survey conducted by HarrisX (on behalf of Realtor.com) showed that a growing number of homeowners are planning to list their homes for sale.

According to that survey, 10% of homeowners nationwide plan to list their homes for sale over the next year. Out of that group, a much higher percentage said they actually plan to sell within the next six months. The survey results were published in April 2021.

There are several possible reasons for the increased number of homes for sale and new real estate listings in the Bay Area. For one thing, the ongoing vaccination program has made people more willing to conduct “business as usual.” Homeowners today appear to be more comfortable with the idea of listing and showing their homes. We’ve also seen an increase in relocation within the Bay Area, and this too has led to more houses coming on the market.

The bottom line here is that we will likely see more homes for sale across the San Francisco Bay Area later in 2021 and also into 2022. This is a positive development for buyers, many of whom have struggled to find a property to purchase in recent months. If these trends continue, future Bay Area home buyers could have an easier time locating and purchasing a property.

Related: Should I wait until 2022 to buy?

Could It Cool the Red-Hot Housing Market?

The Bay Area real estate market has been hypercompetitive over the past year or so. This is largely due to a heavily skewed supply and demand situation.

Home buyer demand has soared over the past 12 months, while inventory remains tight. This lopsided situation has increased competition among Bay Area buyers, while fueling bidding wars and boosting prices.

It stands to reason that an increase in the number of homes for sale could cool the Bay Area real estate market a bit. Increased inventory could eventually lead to a more balanced real estate market, while making things easier for future home buyers.

Related: Is the market beginning to cool?

We could also see a slowdown in price growth later in 2021 and into 2022, especially if there are more homes for sale in the area. This too would be a positive trend, because the double-digit price gains of the last 12 to 18 months are unsustainable.

But we still have a ways to go. Overall, housing market inventory remains chronically low relative to the demand from buyers. It’s good to see more homes for sale in the Bay Area, and hopefully this trend will continue going forward. But it’s still a very tight real estate market that can be challenging for buyers. Patience and persistence are key.