Walnut Creek Housing Market Outlook Extending Into 2022

Forecasts for the Walnut Creek housing market stretching into 2022 suggest that home prices in the area will continue to rise for the foreseeable future.

The same is true for most of the Easy Bay real estate market, in fact. Tight inventory conditions and steady demand have boosted competition and home prices within the Walnut Creek housing market. These conditions will likely persist through 2021 and into 2022.

Walnut Creek Housing Market Outlook Into 2022

The real estate scene in Walnut Creek has been hyper-competitive throughout 2020 and into 2021. Not even a global pandemic could cool this red-hot housing market. In fact, home sales and prices rose steadily throughout the pandemic.

We’ve covered East Bay real estate conditions many times in the past. Today, we’ll be zeroing in on the Walnut Creek housing market in particular. After all, that’s where our company is based. We like to report on conditions within our own “backyard.”

All across Contra Costa County, home prices have risen steadily over the past year or so. That applies to Walnut Creek, as well. In fact, this city has experienced double-digit price growth over the past 12 months with house values reaching an all-time high.

As of May 2021, the median home price within the Walnut Creek housing market was around $927,000. It could cross the $1 million threshold by the first half of 2022, the way things are going right now.

House values in the city rose steadily throughout 2020 and the first part of 2021. According to the real estate data company Zillow: “Walnut Creek home values have gone up 14.7% over the past year.”

This trend is happening all across the county. In May of 2021, the California Association of Realtors (C.A.R.) reported that the median sale price for single-family homes in Contra Costa County rose by 39.4% compared to a year earlier. That was the largest year-over-year increase of all nine Bay Area counties.

Housing market forecasts for 2022 predict that Walnut Creek house prices will continue to climb well into 2022. That’s not surprising, when you consider the stark imbalance between supply and demand in and around the city. So let’s talk about that next.

Supply Shortages Challenge Home Buyers

Walnut Creek housing market predictions for 2022 suggest more of the same, in terms of home-price growth. Such forecast are driven by an ongoing imbalance between supply and demand. Supply shortages continue to affect the real estate market in Walnut Creek and the rest of Contra Costa County.

According to the C.A.R. report mentioned above, Contra Costa County had about a one-month supply of homes for sale as of April 2021. That’s well below what is considered to be a “balanced” real estate market.

In Walnut Creek, the real estate supply situation is even tighter. One report showed a 0.6-month supply of homes for sale in that city, during April 2021. That could very well be the lowest level of inventory in recorded history.

This is largely why Walnut Creek housing market forecasts for 2022 predict a continued rise in home values. Strong demand and low inventory conditions have boosted prices considerably over the past year or so.

The outlook for the rest of 2021 and 2022 suggests more of the same. It would take a significant increase in housing inventory to change this dynamic.

A Competitive Real Estate Scene in 2021

Given the supply-and-demand factors outlined above, it’s probably not surprising to hear that the Walnut Creek real estate market is highly competitive. Homes are currently selling quickly in the area, and often for more than the seller’s list price. That’s the current state of affairs, as of spring 2021.

In April 2021, homes listed for sale in Contra Costa County spent a median of just seven days on the market. That was down from a median of nine days a year earlier, and even that was fast. These numbers indicate a competitive real estate market where homes tend to sell quickly.

Over the past couple of months, most homes listed for sale in Walnut Creek were off the market within two weeks. And more than half of them sold for more than the original list price.

As a result of all this, the Walnut Creek housing market currently favors sellers over buyers. Home buyers can still succeed, but that requires patience and persistence. It also helps to know what kind of real estate scene you are entering, which is the point of this report.

Disclaimer: This article includes housing market forecasts and predictions for Walnut Creek, California extending into 2022. Such projections are the equivalent of an educated guess and are therefore far from certain.