San Diego Housing Market Weekly Update
We are seeing true seasonality in the housing market this year. The first time since the pandemic. Home sales are slowing down, as less homes are listed for sale.
The number to watch is the PRICE CHANGES. This number is slowing down week by week, which tells us that the market is finding it's correct pricing. As San Diego continues to battle low inventory, low affordability, and higher rates, this number could continue to come down.
However, I caution you to stop waiting for a Housing Crash like 2008. There are not enough homes available to signal any foreclosures will be coming soon.
According to Dr. Lawerenc Yun, National Associatioins of Realtor's Cheif Economist, "Housing inventory is about 1/4 of what is was in 2008. Distressed property sales are almost non-existent (2%), and nowhere near the 30% mark seend during the housing crash. Short sales are almost impossible because of the significant price appreciation of the last two years."
Yun goes on to say, "The gap between the 30-year fixed mortgage rate and the goverment borrowing rate is much higher today than it has been historically. If inflation disappears, mortgage rates would be closer to 5.8%."
Furthermore, Yun expects home sales to decline 7% in 2023, but some markets may still see some price gains. In 2024 Yun predicts housing markets will rally with a 10% surge in home sales and a 5% jump in national meidan home prices.
While the housing market is making headlines, it is still a solid investment to purchase a home for the long term.
I'm always available to disucss the housing market and the value of your home.
Text is best- 760-310-0166!