San Diego Housing Market Crash News- November 2022
Housing Market Bubble is bursting, but SLOWLY.
California Housing Market, especially the San Diego Housing Market is having a slow leak. The big housing market crash hasn't happened in most areas of San Diego (except 92025!) - but we are only increasing in median prices for single family homes by 1.8% month to month. If you have a condo or townhome, you saw over 8% increase in your median home price.
No Crash yet, and hopefully with the new APPLE campus in Rancho Bernardo, we will continue to see people moving to San Diego. (time stamps below)
Existing home sales declined nationwide for the eighth consecutive month, falling 1.5% as of last measure, according to the National Association of REALTORS® (NAR), with sales down nearly 24% from the same period last year. Pending home sales also declined, dropping 10.9% month-to-month, exceeding economists’ expectations.
Stubbornly high inflation and soaring borrowing costs have eroded buyer purchasing power and have caused the market to cool rapidly this year.
Closed Sales decreased 44.3 percent for Detached homes and 41.4 percent for Attached homes. Pending Sales decreased 45.0 percent for Detached homes and 49.9 percent for Attached homes. The Median Sales Price was up 2.7 percent to $960,000 for Detached homes and 5.9 percent to $650,000 for Attached homes. Days on Market increased 76.5 percent for Detached homes and 76.5 percent for Attached homes. Supply increased 46.2 percent for Detached homes and 70.0 percent for Attached homes.
The US housing market is undergoing a major shift, and affordability continues to be an obstacle for buyers and sellers. Mortgage rates have doubled since March, and home prices remain elevated due to a limited supply of homes, although price gains are slowing at a quickening pace.
As a result, many homeowners are waiting until market conditions improve to sell their home, while other sellers are increasingly cutting prices and offering concessions to attract a greater number of buyers.
“Inventory levels are still tight, which is why some homes for sale are still receiving multiple offers,” Yun said. “In October, 24% of homes received over the asking price. Conversely, homes sitting on the market for more than 120 days saw prices reduced by an average of 15.8%.”
The ranks of first-time homebuyers are shrinking – in October they were responsible for just 28% of sales, near historic lows.
Realtor.com’s October market trends report found that the largest year-over-year median list price growth occurred in Milwaukee (+34.5%), Miami (+25.1%) and Kansas City (+21.4%). Phoenix, the iBuyer capital of the world, reported the highest increase in the share of homes that had prices reduced compared to last year (+35.9 percentage points), followed by Austin (+31.2 percentage points) and Las Vegas (+24.4 percentage points).
As for the near-term future, don’t expect the good times to return.
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