San Diego Real Estate Market Update – November 2022
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Monthly Indicators
Existing home sales declined nationwide for the eighth consecutive month, falling 1.5% as of last measure, according to the National Association of REALTORS® (NAR), with sales down nearly 24% from the same period last year. Pending home sales also declined, dropping 10.9% month-to-month, exceeding economists’ expectations. Stubbornly high inflation and soaring borrowing costs have eroded buyer purchasing power and have caused the market to cool rapidly this year.
Closed Sales decreased 42.8 percent for Detached homes and 44.3 percent for Attached homes. Pending Sales decreased 43.9 percent for Detached homes and 44.1 percent for Attached homes. Inventory increased 42.3 percent for Detached homes and 45.1 percent for Attached homes.
The Median Sales Price was up 2.8 percent to $884,000 for Detached homes and 9.7 percent to $616,000 for Attached homes. Days on Market increased 50.0 percent for Detached homes and 40.9 percent for Attached homes. Supply increased 80.0 percent for Detached homes and 87.5 percent for Attached homes.
The US housing market is undergoing a major shift, and affordability continues to be an obstacle for buyers and sellers. Mortgage rates have doubled since March, and home prices remain elevated due to a limited supply of homes, although price gains are slowing at a quickening pace. As a result, many homeowners are waiting until market conditions improve to sell their home, while other sellers are increasingly cutting prices and offering concessions to attract a greater number of buyers.
Housing Supply
Rising mortgage rates continue to hamper America’s homebuilders, as higher material costs and growing affordability challenges limit the number of people who can afford to purchase a new home, causing new-home sales to decline nationwide. Construction of new homes has slowed, with housing starts down 8.1% month-to-month as of last measure, according to the U.S. Census Bureau, while the supply of new homes for sale increased 13.6% over the same period, equaling a 9.2 months’ supply. For the 12- month period spanning November 2021 through October 2022, Pending Sales in the San Diego were down 24.6 percent overall. The price range with the largest gain in sales was the $5,000,001 and Above range, where they increased 11.6 percent.
The overall Median Sales Price was up 13.2 percent to $815,000. The property type with the largest price gain was the Condos – Townhomes segment, where prices increased 17.9 percent to $625,000. The price range that tended to sell the quickest was the $750,001 to $1,000,000 range at 21 days; the price range that tended to sell the slowest was the $5,000,001 and Above range at 62 days.
Market-wide, inventory levels were up 43.1 percent. The property type with the largest gain was the Condos – Townhomes segment, where they increased 45.1 percent. That amounts to 1.8 months supply for Single-Family homes and 1.5 months supply for Condos.
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