For the first time in years, the San Diego County housing market is starting to cool.
In the initial six months of 2019, sales were down 8.4 percent from the same time last year. This meant homes stayed on the market longer and there were more options for potential homebuyers.
Even knowing that, there are two things that are confusing to analysts and possibly for the frustrated San Diegan trying to make heads or tails of what is going on.
- Prices are still going up. In June, prices rose 2.6 percent year over year. If sales are down, how is that possible? Most real estate economists and real estate agents have said prices rose so quickly in recent years that the median home price is far out of reach for many potential buyers. However, San Diego County still has a very small number of homes for sale each month compared to the rest of the nation. That means there is still a lot of competition for what is left, even if fewer people are competing, and that pushes prices up.
- All indicators show the home market should be on fire, but it’s not. The San Diego County unemployment rate was near a record low for most of the first six months, and the region had been adding the most positions in the higher paying professional and business services category. Also, the stock market is still showing gains and mortgage interest rates are much lower than they were a year ago.
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