"Insane" Seller's Market
Welcome Raquel's Market Update. The first quarter of 2022 has brought some up and downs in the general confidence in the market, but the low inventory across the county is still causing a constant pressure in the demand for housing. As of March 31st , 2022 San Diego County had 1,778 homes on the market which is an increase of 4% compared to last year. January hit the record for the lowest number of homes on the market EVER, with only 1,254 listed. The 3-year average is 5,846 for the county. The average of homes on the market in 2021 was 2,175. This market is insane!
January had a huge decline in inventory due to the Omicron variance. A total of 31% decrease compared to January of 2021. February recovered a little bit but we still had a 19% decrease compared to last year, and a 21% decrease in March.
This shortage causes 65.4% of homes listed to sell for above list price, and although the volume of sales in the county is down 10 to 15% compared to 2021, the home values have increased 12 to 15% on average with some areas showing up to a 39% increase.
The luxury sales, which are homes priced above $1,500,000 ,has increased by 37% according to Reports on Housing, by Steven Thomas.
The biggest news we had in the first quarter of 2022 is the increase in interest rates. Economists such as Steven Thomas from Orange County are monitoring the market trends closely and they are noticing some changes that hint to a slow down as we move closer to the end of the year.
What does the rest of the year look like for the real state industry?
Well, we are out of our seasonal routine which traditional has shown the housing supply peaking July thru September; but due to the increase in interest rates to around 5% for a 30 year fixed mortgage, we are expecting it to peak closer to the end of the year. This slow down will not translate to a sudden decrease in homes prices, but an adjustment that will change the market from an “insane” seller’s market to a normal seller’s market.
And how about the Coronado market?
This week the median list price for Coronado is $3,395,000 for single family homes and $2,322,000 for condos. The market action index is hovering around 56 this month. This is less than last month's market action index of 60. Inventory has decreased to 14 single family homes listed and the number of condos listed has increased to 14 also. Another interesting fact is the increase in properties listed showing a price decrease. At the end of February we didn’t have any properties with a price decrease on the market and by March 18th, 35.4% of the properties listed showed a price decrease.
As the demand decreases and the inventory has a chance to catch up it will create a little bit more of a balance real estate market as the months go by. The increase in interest rates,
For questions regarding a specific property please call me at 619-453-4513.
Broker associate at Coronado Shores Co.