Housing costs in San Diego fell for a fourth straight month, but there are fewer buyers looking.
The epidemic has had a significant impact on the property market, but this time, according to analysts, the rise in mortgage rates is bringing about a distinct transformation that hasn’t been witnessed since before the pandemic.
San Diego housing costs decreased for the fourth straight month, but rising mortgage rates are pricing some buyers out of the market.
“The No Bull Agent” Ken Kaplan said, “We’re seeing sellers sit on the market longer and we’re seeing more price reductions because buyers are a little more cautious. But the other thing that’s happening that we’re starting to see — and that we haven’t seen in many years — is that sellers are also paying closing costs for buyers.
According to Kaplan, buyers currently “have a little bit of an upper hand because of the standing inventory.”
Redfin reports that the median price of a property in San Diego is $842,250, indicating a little cooling off since the market’s peak in March.
A home in San Diego is sitting on the market for an average of 28 days, according to Redfin, a duration we haven’t seen since before COVID.
According to Kaplan, the amount of unsold housing in San Diego has tripled in the previous year. Around 1,400 units were available on the market a year ago; today, there are roughly 4,500.
The best bargain, according to Kaplan, is one that benefits both parties. “You can make a good deal in a bad market, you can make a good deal in a bad market,” Kaplan said.
Due to increasing interest rates, what a buyer could qualified for months ago has altered.
For instance, using an estimate and decent credit, your monthly payment before taxes and fees will be $5,285 if you buy a house for the median home price of $842,250 with a 20% down payment and current interest rates of 6.43%.
Your payment would have been $3,652 before taxes and fees with the same numbers and a lower interest rate of 3.22%, as we saw in January 2022.