It’s been a wild year for Bay Area real estate — and not in the way we’ve become accustomed to. After a hotter than hotter 2021, 2022 started with a bang, only to cool off dramatically in the second half of the year. As interest rates rose, stock markets softened, and layoffs ramped up, the Bay Area housing market began to contract for the first time in years. One report even said that the Bay Area metro is no longer the least affordable housing market in the US. The rental market also remained fairly stable, remaining below pre-pandemic levels and showing no signs of recovering the title of the most expensive market in the US.
Forecasts are just that, and if last year’s forecasts taught us anything, it’s that markets can change dramatically, even within a year. We spoke to Bay Area economists, realtors and data analysts to better understand what they think will happen in the housing market in 2023.