Monthly Housing Market Update: San Diego Real Estate
The U.S. housing market experienced a downturn in existing-home sales in the latest data released by the National Association of REALTORS® (NAR). Home sales fell for the first time since September, slipping 4.9% month-over-month to a seasonally adjusted annual rate of 4.08 million units.
San Diego Housing Market
Despite this dip, there was a silver lining—year-over-year San Diego home sales saw a 5% increase, marking the fourth consecutive month of annual gains. However, the market remains pressured by high home prices and elevated mortgage rates, which continue to impact buyer activity.
Breaking Down the Sales Data
The latest figures provide insights into the shifts occurring within different property types:
Detached Homes: Closed sales dropped 9.7%
Attached Homes: Closed sales faced a steeper decline, down 15.9%, but pending sales are down only 2.5%.
Median Sales Price: The median price for detached homes climbed 5.5% to $1,050,000, whereas attached homes saw a increase of 3.1% to $675,000.
Days on Market: Homes are taking longer to sell, with an increase of 24% for detached homes and a significant 41.7% rise for attached homes.
San Diego Housing Market Housing Supply: Inventory levels improved, rising 4.8% for detached homes and surging 21.1% for attached homes.
Despite the uptick in supply, the overall housing inventory remains constrained, continuing to drive home prices upward across the country.
Mortgage Applications Surge
In contrast to the slowdown in existing-home sales, mortgage applications surged 20.4% last week. This increase was fueled by a notable 37.0% jump in refinancing activity, as homeowners sought to capitalize on any fluctuations in mortgage rates. Additionally, purchase volumes increased by 9.1%, indicating that while some buyers are holding back due to affordability concerns, others are actively seeking opportunities in the market.
What This Means for Buyers and Sellers
For prospective buyers, affordability remains a major challenge as mortgage rates and home prices continue to rise. However, the increase in housing supply may provide more options, potentially leading to slightly less competitive conditions. Buyers who are financially prepared and able to secure favorable loan terms may find opportunities in the evolving market.
Sellers, on the other hand, may need to adjust expectations, especially in terms of pricing and time on the market. While demand remains strong, homes are taking longer to sell, and buyers are becoming more selective. Proper pricing strategies and home presentation will be critical in attracting serious buyers.
Looking Ahead
As the real estate market navigates these shifts, industry experts will be closely monitoring mortgage rate trends, inventory levels, and buyer activity. While the current slowdown in existing-home sales suggests some cooling, the broader market remains resilient, with year-over-year sales growth and strong mortgage application activity signaling continued demand.
For buyers and sellers alike, staying informed and working with knowledgeable real estate professionals will be key to making sound decisions in this evolving landscape.
