San Diego Housing Market Update July 29-Aug 4, 2022

Home prices are continuing to adjust to the new market “normals” and fell last month by 1.8% ($17K) to $969,000. Overall prices have slid by about 3% since the high of $1 million 3 months ago.

Overall in the San Diego housing market, we are seeing price reductions as sellers and agents bring prices back in line with the new normal of pricing. Meaning, a lot of homes were being over priced and sellers and agents didn’t catch on that the market was shifting and got caught in the middle. Those that NEED to sell have to cut their price fairly dramatically to get action on the home.

But many people don’t HAVE to sell and so they aren’t panic selling which is keeping housing prices up for the most part. A 3% slide in prices really is very little considering the amount of doom and gloom that is in the news headlines.

Mortgage rates so dipped below 5% briefly last week but have bumped back up to an average of 5.35% for a 30 year fixed. This is helping to keep buyers in the market. With the exception of some San Diego neighborhoods (like Ocean Beach for instance) shopping for a home is completely different than it was for the past two years. You can potentially be the only offer on the home or only be competing against 2-4 others.

A number we haven’t seen in a very long time is the percentage of asking price received. In July, it was 98.3% which we haven’t anything below 100% since September 2020. This actually is a VERY normal number where historically, the average percent of final sales price to list price is about 98%.

Inventory of homes for sale has stopped the rapid increase and has balanced our around 5,000 homes available and actually declined slightly this past week.

This is consistent with the thought that home owners rushed to get their homes on the market to beat out declining sales prices. This resulted in a rapid rise in inventory and now inventory is flat lining.

Curtis Chism, Realtor
858-281-2568
curtis@sandiegohomes.io
Chism Team | DRE #02105113
brokered by eXp Realty | DRE #01878277