San Diego’s residential real estate market for single family homes is cooling down, with some brokers reporting that homes are taking longer to sell than they did just a few months ago and rising mortgage rates are putting a crimp on sales.
Even so, prices continue to rise, although slower than they did earlier this year and in 2017, according to brokers and real estate analysts.
They predict that the trend of slower sales with slowly rising prices is likely to hold, although some said the market could pick back up in early 2019.
Home Sales Drop 8.9%
According to CoreLogic, which tracks housing prices, the median single family home in San Diego County sold for $583,000 in August 2018, up from $535,000 in August 2017 — at 9 percent, the highest year-over-year price increase in Southern California.
Nationally, home prices increased 5 percent from August 2017 to August 2018, according to CoreLogic.
The number of single-family homes sold in San Diego County dropped from 4,120 in August 2017 to 3,753 in August 2018, according to CoreLogic — among the highest drop in sales in Southern California at 8.9 percent.
Only Orange County in Southern California had a bigger decline in sales — 10.9 percent.
“The market is definitely cooling,” said Steven Fraioli, president of the San Diego Association of Realtors.
“People just don’t know what to do right now. Everyone thinks, ‘I better wait.’ People are on the fence about buying a property because they think prices are going to come down. I don’t think that’s happening for some time,” Fraioli said. “As long as you can afford to hold a home, you’re going to wind up being OK in the long run. In the short run, we don’t know.”
Among real estate agents on the ground, Cheryl Chase-Berkson of Chase Pacific Property Management & Real Estate Services, said “The market has stalled.”
From January to June of this year, “people were standing in line” to buy single-family homes, sellers were getting multiple offers and homes were being sold for more than the asking price, Chase-Berkson said.
“I could feel the market slow-down in mid-August. Then, through September, it was like, whoa,” she said. “I’ve got listings right now and people are coming to open houses but they’re not making offers. They’re looking just for fun or maybe seeing what’s out there, checking out prices. It’s a slower environment that we’re into right now.”