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Nick Pham, Broker

Nick Pham, Broker

Top San Jose Realtor

What Real Estate Market Cycle Are We In? 2022 Prediction

I have been tracking the our local real estate market trend ever since I switched my career ~ 20 years, ago. I have seen 30 yrs Mortgage Interest rate as high as 18.000% in 1981. Never in my current life cycle that I would imagine seeing 30 yrs fixed Interest Rate as low as 2.500%, and 2.000% for 15 yrs fixed rate started 2021. This was even before the COVID pandemic that surfaced ~ Mar 2021.

Since the last market crash in 2008, everyone has attempted to predict (hoped) for a market correction, cycle, cool down. Digital data seems to indicate a cycle every 8-10 years. 1996- 2007, 2010-2018! There was a dip in 2019. And since 2020, the market seems to indicate a upward cycle again. Will this be another 8-10 cycle, 2020-2030, or …???

With the interest rates remaining at a 40 yrs low, and the demand for more housings as strong as ever, my prediction is that we will continue to see a steady increase in home prices will continue in 2022. Did COVID help fueled the needs for more housings for remote workers? It is the low interest rates the primary reason for high demand for homes across the country and the Bay Area in specific? One thing remains super bright for Silicon Valley – the real estate investments from Google, Apple, Facebook, Amazon and other Tech Giants will continue to drive demands for housings for the workforce! Google mega San Jose campus, Apple North San Jose Campus are barely on the way. I was fortunate enough to have served as a Planning Commissioner for the City of San Jose, and understand the Envision 2040 for the city… So over the next 10 years, do I expect the San Jose Real Estate Market to remain strong? Yes!!! If Silicon Valley were a country of its own, it would be one of the richest on earth!

What is your prediction?

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