| LIFE IN SOLERA | MARCH 2022 | 13
Southern California homeowners aren't likely to see home-price
growth hit the levels seen last summer, but that doesn't mean prices
are dropping. Mortgage rates are on a steady upward climb as of late,
which will take some wind out of the housing market's sales.
But the primary factor behind the fast pace of home-price
appreciation over the past couple years — the short supply of homes
for sale — isn't likely to change anytime soon. So long as mortgage
rates don't price out too many buyers, demand for the few homes that
are on the market should stay strong, which will continue to push
home prices higher.
LOOKING AHEAD: "Despite edging mortgage rates and some
seasonal moderation in the housing markets, the rate of home-
price appreciation continues to track well above sustainable levels"
according to Selma Hepp, deputy chief economist at CoreLogic.
And given the economy's strong wage growth, low supply and
continued competition for homes, demand pressures will continue
to support home price acceleration according to most reports I have
read.
WHAT ABOUT SOLERA? Home prices in Solera have really been
on the rise ever since COVID first appeared. As of Feb. 7, 2022, the
median price of a Princess was $370,000. The median price of a
Trillion: $436,750; and an Emerald median price: $467,500. The
median prices are based on three-month prior sales of that model. If
the inventory in Solera remains low and interest rates remain stable,
home prices in Solera will continue to inch up, at least through this
year.
Information gathered from California Association of Realtors,
CoreLogic, and CRMLS.
REAL ESTATE NEWS
By Diana Mangan
Realtor and Resident
