San Diego County Housing Report: A Modest Deceleration
September 6, 2023
As rates have edged higher and higher this year, the housing market has been slowing down from its insane pace, and now homes are taking a little longer to sell.
Market Time is Rising
The Expected Market Time has grown from 31 days in April to 50 days today, a noticeable shift in the speed of the market due to rates rising above 7%.
It seems as if prices keep going up. Gas is once again above $5 per gallon. Date night at a favorite restaurant is now north of $100. A quick grocery stop for a few items totals more than $50. Wallets have been stretched. As a result, many are changing their spending habits and cutting back on extra errands or nights out.
Similarly, home affordability has been squeezed since the 30-year fixed rate climbed from 3.25% in January 2022 to over 7% in October and November 2022. This year started with mortgage rates easing to 5.99% in February. Yet, after reaching 6.39% in mid-April, they have been on the rise, climbing to 7.49% on August 21st, the highest mortgage rate according to Mortgage News Daily since December 2000, nearly 23 years ago. Buyers' wallets are stretched, and fewer and fewer can afford homes with these sky-high rates.
The Expected Market Time (the number of days to sell all San Diego County listings at the current buying pace) reached its hottest reading of 2023 in April, just 31 days when rates had dropped to 6.16%. Slowly but surely, mortgage rates inched higher, eclipsing 7% in May. Demand remained flat, and the inventory increased little by little. The Expected Market Time rose slightly to 36 days, which is still remarkably hot. In June, rates hovered just below 7%, and demand did not change much, but the inventory continued its methodical, slow rise. The Expected Market Time climbed to 40 days. It was more similar in July, and the market time climbed to 42 days. Last month, in August, as rates continued to spike, nearly reaching 7.5%, demand cooled further, the inventory grew a touch, and the market time reached 50 days.
Click here to download the complete report for free.
September 6, 2023
As rates have edged higher and higher this year, the housing market has been slowing down from its insane pace, and now homes are taking a little longer to sell.
Market Time is Rising
The Expected Market Time has grown from 31 days in April to 50 days today, a noticeable shift in the speed of the market due to rates rising above 7%.
It seems as if prices keep going up. Gas is once again above $5 per gallon. Date night at a favorite restaurant is now north of $100. A quick grocery stop for a few items totals more than $50. Wallets have been stretched. As a result, many are changing their spending habits and cutting back on extra errands or nights out.
Similarly, home affordability has been squeezed since the 30-year fixed rate climbed from 3.25% in January 2022 to over 7% in October and November 2022. This year started with mortgage rates easing to 5.99% in February. Yet, after reaching 6.39% in mid-April, they have been on the rise, climbing to 7.49% on August 21st, the highest mortgage rate according to Mortgage News Daily since December 2000, nearly 23 years ago. Buyers' wallets are stretched, and fewer and fewer can afford homes with these sky-high rates.
The Expected Market Time (the number of days to sell all San Diego County listings at the current buying pace) reached its hottest reading of 2023 in April, just 31 days when rates had dropped to 6.16%. Slowly but surely, mortgage rates inched higher, eclipsing 7% in May. Demand remained flat, and the inventory increased little by little. The Expected Market Time rose slightly to 36 days, which is still remarkably hot. In June, rates hovered just below 7%, and demand did not change much, but the inventory continued its methodical, slow rise. The Expected Market Time climbed to 40 days. It was more similar in July, and the market time climbed to 42 days. Last month, in August, as rates continued to spike, nearly reaching 7.5%, demand cooled further, the inventory grew a touch, and the market time reached 50 days.
Click here to download the complete report for free.
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George Lorimers Real Estate Newsletter
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