San Diego Housing Market Forecast June 3-9, 2022

by Curtis Chism

Home prices declined 1% this past month from an all time high of $1 million to $990,000. It’s not surprising given the massive run up in prices from January through April of over 17% ($150k). The rapidly rising interest rates which were in the low to mid 5% range in April/May began cooling the market.

The average rate reflected in the graphic above doesn’t account for two very rough days of interest rate increases this past Friday and Monday. The average conventional, 30 Year fixed rate is over 6% now. This is going to cause a much more rapid deceleration of the real state market.

A mortgage payment for the median priced home in December 2021 ($850,000) with 3% interest rates, compared to the median priced home today ($990,000) with 6% interest rates is $2,000 more per month than 5 months ago. That can be an entire mortgage payment in other states. I expect we’ll see more of a flight to other lower cost states for those that can work remote.

Curtis Chism, Realtor
858-281-2568 | Mobile
mailto:info@sandiegohomes.io
Chism Team | DRE #02105113
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