Monthly Market Overview North San Diego County April 2022  

The average 30-year fixed rate mortgage exceeded 5% in April, the highest level since 2011, according to Freddie Mac. The recent surge in mortgage rates has reduced the pool of eligible buyers and has caused mortgage applications to decline, with a significant impact on refinance applications, which are down more than 70% compared to this time last year. As the rising costs of homeownership force many Americans to adjust their budgets, an increasing number of buyers are hoping to help offset the costs by moving from bigger, more expensive cities to smaller areas that offer a more affordable cost of living.

  • Closed Sales decreased 21.1 percent for Detached homes and 23.4 percent for Attached homes.
  • Pending Sales decreased 20.9 percent for Detached homes and 13.3 percent for Attached homes.
  • The Median Sales Price was up 17.1 percent to $1,101,011 for Detached homes and 28.9 percent to $735,000 for Attached homes.
  • Days on Market decreased 20.0 percent for Detached homes and 30.8 percent for Attached
    homes.
  • Supply decreased 30.8 percent for Detached homes and 30.0 percent for Attached homes.

Affordability challenges are limiting buying activity, and early signs suggest competition for homes may be cooling somewhat. Nationally, existing home sales are down 2.7% as of last measure, while pending sales dropped 1.2%, marking 5 straight months of under contract declines, according to the National Association of REALTORS®. Inventory remains low, with only 2 months supply at present, and home prices continue to rise, with the median existing home at $373,500, a 15% increase from this time last year. Homes are still selling quickly, however, and multiple offers are common in many markets.

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Monthly Market Overview North San Diego County March 2022  

Nationally, existing home sales recently dropped to a 6-month low, falling 7.2% as buyers struggled to find a home amid rising prices and historic low inventory. Pending sales are also down, declining 4.1% as of last measure, according to the National Association of REALTORS®. Builders are working hard to ramp up production—the U.S. Census Bureau reports housing starts are up 22.3% compared to a year ago—but higher construction costs and increasing sales prices continue to hamper new home sales, despite high
demand for additional supply.

  • Closed Sales decreased 10.2 percent for Detached homes and 20.9 percent for Attached homes.
  • Pending Sales decreased 9.3 percent for Detached homes and 9.7 percent for Attached homes.
  • The Median Sales Price was up 23.0 percent to $1,064,250 for Detached homes and 30.0 percent to $700,000 for Attached homes.
  • Days on Market decreased 22.2 percent for Detached homes and 25.0 percent for Attached homes.
  • Supply decreased 53.8 percent for Detached homes and 50.0 percent for Attached homes.

Across the country, consumers are feeling the bite of inflation and surging mortgage interest rates, which recently hit 4.6% in March, according to Freddie Mac, rising 1.4 percent since January and the highest rate in more than 3 years. Monthly payments have increased significantly compared to this time last year, and as housing affordability declines, an increasing number of would-be homebuyers are turning to the rental market, only to face similar challenges as rental prices skyrocket and vacancy rates remain at near-record
low.

San Diego North County Monthly Housing Market Indicators March 2022
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Monthly Market Overview North San Diego County February 2022

The U.S. real estate market remains hot ahead of the spring selling season, with existing home sales up 6.7% as of last measure, according to the National Association of REALTORS®. Experts attribute the growth in sales to an uptick in mortgage interest rates, as buyers rushed to lock down their home purchases before rates move higher. Mortgage rates have increased almost a full percentage point since December, with the average 30-year fixedrate mortgage briefly exceeding 4% in February, the highest level since May 2019.

  • Closed Sales decreased 11.3 percent for Detached homes and 6.6 percent for Attached homes.
  • Pending Sales decreased 15.6 percent for Detached homes and 18.2 percent for Attached homes.
  • The Median Sales Price was up 13.4 percent to $957,500 for Detached homes and 22.0 percent to $670,000 for Attached homes.
  • Days on Market decreased 22.7 percent for Detached homes and 25.0 percent for Attached homes.
  • Supply decreased 57.1 percent for Detached homes and 50.0 percent for Attached homes.

Inventory was at an all-time low of 860,000 as February began, down 17% from a year ago and equivalent to 1.6 months supply. According to Lawrence Yun, Chief Economist at the National Association of REALTORS®, much of the current housing supply is concentrated at the upper end of the market, where inventory is increasing, while homes priced at the lower end of the market are quickly disappearing, leaving many first-time buyers behind. The shortage of homes is boosting demand even further, and with bidding wars common in many markets, it’s no surprise sales prices continue to soar.

San Diego North County Monthly Housing Market Indicators February 2022

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