In March, home prices in San Diego County experienced a slight uptick, but this increase may not be welcomed by many potential homeowners.
According to a report by Attom Data Solutions, the median home price in the county reached $900,000, reflecting a 1.1% increase from the previous month and a 2.7% rise compared to the same time last year.
This modest gain stands in stark contrast to the 10% annual increase observed in the previous year, indicating a potential shift in market dynamics.
However, the pace of sales remains concerning, with a total of 2,189 closed transactions in March, marking a 3.8% decline from the prior year, although there was an 8.2% increase from February’s figures.
Real estate analyst Mark Goldman from C2 Financial Corp. noted a clear slowdown in the local market, as evidenced by the abundance of open house signs seen on weekends.
He emphasized that while more homes are being listed for sale, the lack of increased sales should raise red flags.
“Inventory is up and sales are down,” Goldman stated.
“When that happens, look out for a slowdown in the market.”
Normally, a rise in listed homes correlates with an uptick in transactions, but current trends suggest otherwise.
In March, there were approximately 4,900 homes on the market, according to the Redfin Data Center, a notable increase from about 3,800 homes during the same period last year.
Homes took a median of 25 days to sell—up from 22.5 days in late January, indicating a cooling market.
Alongside fluctuating prices and sales, interest rates continue to play a role in the housing market.
As of the final week of March, Freddie Mac reported an average interest rate of 6.65% for a 30-year fixed-rate loan.
With a 20% down payment, prospective buyers would face a monthly payment of $4,997, roughly double the average rent in San Diego County.
By this week, the rate has climbed to 6.81%, further complicating the landscape for potential homebuyers.
North County real estate agent Raylene Brundage has observed apprehension about the economy impacting both buyers and sellers in recent months.
She mentioned that in recent transactions, two sellers backed out due to concerns over potential capital gains taxes.
“I still see the same skittishness,” Brundage commented, reflecting the ongoing uncertainty in the market.
Attom’s report also highlighted that for single-family homes, the median sale price was $1 million, representing a 4.1% increase over the past year.
For condos and townhouses, the median reached $690,000, up 2.2% annually.
On a broader scale, the national median home price stood at $362,000 in March, with California’s median at $743,250.
A regional comparison of median prices reveals the following:
Los Angeles County remained stable month-over-month at a median price of $900,000, but shows an annual increase of 5.9%.
Orange County stayed flat with a median of $1.2 million, reflecting a 4.3% rise annually.
Meanwhile, Riverside and San Bernardino Counties experienced slight annual decreases, with median prices of $605,000 and $526,750, respectively.
Contrarily, San Diego County is currently up 1.1% monthly, while Ventura County has seen a decrease of 1.5% to a median of $862,000, although it is up 2.8% year-over-year.
As the market navigates these shifting dynamics, the impact on buyers and sellers remains a focal point for analysts and industry professionals.
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