Luna New Year 2022

With the new year, there are lots of changes but still the same challenges. With this comes anxiety and frustrations. What is for certain is that it’s your family’s job to be there for one another during these times.

By focusing on building your family support system, you can start this year off on a positive note.

Here are 5 easy tips to help you and your family feel confident and connected in 2022!

1. Eat at least two meals together per week
Between running errands and zoom meetings, planning a meal together can sometimes be a challenge. But even just having 2 meals a week allows for bonding opportunities. Your family will have a safe space to share about their day. Just make sure to turn off distractions.

2. Get outside more
It is scientifically proven that 90% of our best childhood memories take place outside. Whether biking, swimming, hiking, or even just going on a 10-minute walk down the street, being outside with your partner or family is great for the body and lets the mind explore.

3. Record your life together
Grab a journal or a disposable camera to document the year together. Write down favorite aspects of an adventure and tape the photo to the page or post the photos on the fridge

4. Have a family game night

Having a game night not only creates camaraderie, but allows for creativity and amusement. Some top games include: Sequence, Cranium Cadoo, Apples to Apples, Settler’s of Catan, and Pictionary (add your personal favorite!)

5. Create family resolutions

This year, instead of only making personal resolutions create family resolutions as well! In what ways do you want to see your family grow? Set goals. It could be as simple as reading a book together once a week.

Silicon Valley – The Local Lowdown Quick Take: Single-family home prices and condo prices increased significantly in 2021. Home prices rose across counties: San Mateo County: +14% for single-family homes; +5% for condos Santa Clara County: +26% for single-family homes; +18% for condos Santa Cruz County: +12% for single-family homes; 0% for condos Despite historically low inventory, the increase in home sales and speed of sales reflect the high demand in Silicon Valley. Months of Supply Inventory further indicates a sellers’ market.

Home prices still have room to run in 2022

After the rapid price appreciation of single-family homes in the first half of 2021, it makes sense that price increases would slow in the second half. Although no market was at an all-time high in December, Silicon Valley home prices remain historically high, but year-over-year price appreciation is decelerating. We expect price appreciation will be more muted as we make our way through the winter months, and then pick up again in the spring and summer seasons.

Like single-family homes, condo prices in Santa Clara increased considerably in 2021 and reached an all-time high in December. Santa Cruz County condo prices declined sharply in December, bringing prices flat for the year. With fewer single-family homes on the market, we are seeing higher demand for condos.

The Silicon Valley market does seem to be cooling, which is a seasonal norm this time of year. However, with inventory at record lows, we could easily see prices start to rise once again in 2022, especially in the spring and summer seasons.

Back to record low inventory

Despite the slight increase in single-family home inventory in the first half of 2021, the sustained high demand and lack of new listings in the second half brought single-family home and condo supply to historic lows. Once again, we are seeing that far more people want to live in Silicon Valley than want to leave. Sales in Silicon Valley have been incredibly high, especially when accounting for available inventory, again highlighting demand in the area. Sellers can expect multiple offers, and buyers should come with competitive offers.

Months of Supply Inventory further indicates high demand

Homes are still selling extremely quickly, indicating the high demand in Silicon Valley. Buyers must put in competitive offers, which, on average, are 3–6% above list price.

Months of Supply Inventory (MSI) quantifies the supply/demand relationship by measuring how many months it would take for all current homes for sale on the market to sell at the current rate of sales. The average MSI is three months in California, which indicates a balanced market. An MSI lower than three indicates that there are more buyers than sellers on the market (meaning it’s a sellers’ market), while a higher MSI indicates there are more sellers than buyers (meaning it’s a buyers’ market). Currently, single-family home and condo MSIs are both historically low, strongly indicating a sellers’ market.

Of course, I’d be remiss if I didn’t mention if you are interested in discussing your real estate goals for 2022 and/or to see what your home is valued, feel free to reach out for a free consultation!

With much gratitude, Eric Pai