A SUMMARY ON SANTA CLARITA'S REAL ESTATE MARKET

• The FED is going to raise interest rates throughout 2022 increasing demand to get a lower interest rate now.
• Baby boomers are settling down during these crazy times adding to lack of supply.
• Millennials are in peak buying times to settle down increasing demand.
• The market is highly competitive causing buyers "FOMO" and increasing demand.
• Creative financing from the FED allowing more people to qualify for traditional lending increasing demand.
• Financial education gaining steam on social media channels increasing demand
• People trying to sell at the "top of the market" and renting waiting for correction increasing supply
• Stimulus and federal support which is increasing demand
• Institution buyers growing their portfolios rapidly which is decreasing supply
• The end of the moratorium will have a negative effect on the market

We believe that the market will see a correction in 2022. Statistics are showing that the real estate market saw an 18% increase in 2021. Although we are still in a sellers market we won't see a double-digit increase again in 2022. This is due to the federal government looming the increase in interest rates over our heads. In a typical market when interest rates go up the market tends to level out at a sweet spot. In the first half of 2022 prices will continue to surge because of the interest rate spike on the horizon. We should see a slight correction by the middle of this year. However, our experts say that it is never a bad time to buy real estate. Real estate is one of the best vehicle to build and sustain wealth over time. This is not to mention the cash flow and tax benefits.