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San Diego County Median Home Price Rises to $975K, But is Hot Market on Cusp of Cooling?

House for sale in La Mesa. Photo by Chris Stone
A house for sale in La Mesa in 2021. Photo by Chris Stone

There are signs of relaxation in some of the hottest corners of the US housing market, said Redfin in a report on Friday, even when a San Diego real estate group reported a new high on average prices.

But could high house prices and rising mortgage rates reduce demand from home buyers?

Among the first news, according to Redfin:

  • Google searches for “homes for sale” fell to double digits in San Francisco and Los Angeles in the second week of March compared to the previous year.
  • Home tours for sale in California fell 21% on March 31, compared to the first week of 2022, according to data from ShowingTime.
  • Redfin’s agents in San Francisco, Los Angeles, Washington, Boston and Seattle reported lower demand for housing assistance earlier this year than last year, although demand increased nationwide and
  • Agents in California say they see fewer deals in every home.

In San Diego, meanwhile, average home sales rose 7% to $ 975,000 in March from a month earlier.

However the Greater San Diego Association of Realtorsin a Friday edition, it also reported that from year to year, sales of existing homes fell by 6% for single-family homes and almost 17% for apartments and homes in the city.

Nationwide, house prices have risen by about 35% in the two years since the COVID-19 pandemic struck the nation and the Federal Reserve cut short-term interest rates to almost zero. Zillow Home Value Index shows.

The Fed last month began raising its policy rates to reduce decades of high inflation as the economy reopened. Long-term borrowing costs have risen sharply in anticipation of more aggressive interest rate hikes in the future.

The average interest rate on a 30-year mortgage, the most popular mortgage in the US, rose last week to 4.9%, a new three-year high, data from the Bank Mortgage Association showed this week.

However, the US housing market is still hot, even in the cool cities of California. The average home in Los Angeles, for example, sells for 5% above the asking price, with a record share sale within a week of listing, Redfin said.

However, the new signs, the report said, predict a slowdown in prices in the coming months.

Staff and wire reports


San Diego County Median Home Price Rises to $975K, But is Hot Market on Cusp of Cooling? Source link San Diego County Median Home Price Rises to $975K, But is Hot Market on Cusp of Cooling?

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