San Diego County’s median home price fell for a third month in August, down 6% from its spring peak.
The median was $ 799,000, CoreLogic / DQNews said Tuesday. It hit an all-time high of $ 850,000 in May, but the market – in San Diego and the rest of the nation – has slowed as mortgage rates continue to rise. The median combines all single-family, condominium and townhouse sales.
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The San Diego real estate market has not yet experienced anything like a slump – prices are still rising 10.2% annually and remains one of the fastest-appreciating markets in Southern California. However, the time homes stay on the market has increased to the high point of the year due to slowing competition.
“Buyers are taking their time. There’s no sense of urgency, ”said Jan Ryan, a Ramona-based RE / MAX agent.
Ryan said she was recently able to sell a large single-family home in Ramona’s Black Canyon Estates for about $ 1 million, but it took 45 days and a $ 86,000 price cut. He said the house would be sold over a weekend last year as buyers seemed to be doing everything they could to secure a property.
Ryan said the slowdown is more subtle, not an obvious crash. “It’s a soft landing,” he said.
Higher interest rates reduce the purchasing power of buyers, extending the life of homes and leading to price cuts. In August, Redfin said 49.7% of San Diego County homes on the market had some sort of price cut from their original list price. Of the 90 largest subways, San Diego had the 13th most price reduction. Denver had the highest, with 62.2 percent, and Newark, New Jersey, with the lowest with 15.6 percent.
The interest rate for a 30-year fixed-rate mortgage was 5.22% in August, Freddie Mac said, up from 2.84% the year before. However, the average rate for August fell from 5.41% in July.
In Zillow’s August market report, released Monday, it said home value nationwide fell 0.3% from July to March, the largest monthly drop since 2011. It said the rate hike Mortgage meant that the typical mortgage payment – $ 1,643 per month – had increased 58.8% in one year. In San Diego, the typical mortgage payment – $ 4,089 per month – increased 52.9 percent in one year.
“Homebuyers continued to hesitate in the face of obstacles to the affordability of mortgages this August,” he wrote, “leaving less competition and more inventory of homes for sale on the market.”
Here’s how the San Diego County price changed based on home type in August:
The inventory of San Diego homes for sale has been around 5,000 since June, compared to around 2,000 in January, as homes take longer to sell. Median days on the market for a home in San Diego County were 23.5 days in August, the highest since February 2020, the Redfin Data Center said. In March, it took an average of eight days to sell.
Southern California still saw prices rise 8.8% in one year. Riverside County grew the most, up 10.8% in one year for a median – the point where half the homes sold for more and half for less – of $ 581,500.
It was followed by San Diego County, up 10.2%; Orange County, up 9.3% to an average of $ 984,000; San Bernardino County, up 7.5% for an average of $ 500,000; Ventura County, up 5.6% to an average of $ 782,250; and Los Angeles County, up 4.5% to an average of $ 820,000.