After two years of record-setting activity, there are signs the housing market might be cooling. High home prices and a surge in mortgage interest rates are slowing buyer activity, with home sales declining for the third consecutive month under the weight of soaring homeownership costs.

The National Association of REALTORS® (NAR) reports existing home sales were down 2.4% from the previous month, while pending sales fell 3.9% as of last measure, extending the trend of recent months. Economists predict sales will continue to soften in the near future, which may put downward pressure on home prices.

• Closed Sales decreased 15.8 percent for Detached homes and 7.0 percent for Attached homes.
• Pending Sales decreased 29.2 percent for Detached homes and 10.8 percent for Attached homes.
• The Median Sales Price was up 15.8 percent to $1,100,000 for Detached homes and 18.6 percent to $700,000 for Attached homes.
• Days on Market decreased 31.3 percent for Detached homes but remained flat for Attached homes.
• Supply decreased 7.1 percent for Detached homes and 9.1 percent for Attached homes.

The slowdown in sales has provided a much-needed lift to housing supply, with inventory up 10.8% from the previous month according to NAR, although supply remains down 10.4% compared to this time last year, with only 2.2 months’ supply of homes at the current sales pace.

San Diego North County Monthly Housing Market Indicators May 2022

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