San Diego Market is hot?

Question

Hello everyone, just wondering now that the interest rates and housing prices have risen, is the SD market still as hot as it was 3-4 months ago? Are people still purchasing condos $100K over asking? Are people still seeing dozens of offers on a condo/townhouse? I've looked at Redfin and saw few active properties staying longer than 20 days but I also don't know what's going on in the backend. I know it can differ per price point but just wondering if someone can give insights on how the market is for $400-600K purchase. Thank you!

Gregg Watkins · Answer

I would agree with Emy.

The market is still hot, but slowing down a bit. We’re seeing a modest increase in days on market, fewer active buyers, not as many offers on a listing, etc.

We just put a property in escrow while representing the buyer, and the seller sent us a counter offer – not a multiple counter offer. This is another small example of having fewer buyers in the market.

But overall, there are still more buyers than sellers, and prices continue to go up.

In March, San Diego County’s median home price (combination of resale condos and single-family homes) hit a new high of $805,000.

Single-family homes in San Diego County reached a new high of $925,000.

And resale condos saw a significant rise, as the median hit a record high of $640,000, up from February’s peak of $612,250.

These aggressive upward price trends will likely slow in the coming months as interest rates continue to go higher.

Good luck!

Emy Bernardo · Answer

I have some first time buyer clients in lower end of this price range (400-450k) looking for condos and I do think it's slowing down a bit - just in the last couple of weeks.   I'm seeing longer days on market, properties falling out of escrow (buyers cold feet) and a few of the condos that I've been tracking have actually sold for less than or at list price.  It could be that this price range is made up of a lot of first time buyers using FHA or low down payment options w/ added PMI and they are more price sensitive. Also, it seems many listing agents don't factor in the cost of HOA/Special assessments when determining list price. Most buyers go by what the monthly payment is rather than the purchase price.  Add PMI & HOA to the monthly PITI and these costs really add up. It seems many of the condos at the lower price range have high HOA fees (400+ a month) - combine that with a 1% increase in mortgage rates from a month or so ago and many first time buyers are getting priced out of the market or simply not willing/able to cover an appraisal gap/offer over list price.

Wesley I. · Answer

@Sarah Enero

We have been looking since December of last yr and just closed escrow on a fixer SFH. I know you were asking about condos/townhouses but from what I have observed, days on market are getting longer, and fewer peeps are going to open houses. Properties are still getting scooped up but it looks like the frenzy has slowed down.

San Diego Market is hot?

Most Popular Reply