The North County and San Diego housing markets saw year-over prices drop in March, but it’s still a sellers’ market. What’s causing this dichotomy in the market? — interest rates and inventory. Higher mortgage rates have slowed the housing market down and put pressure on home prices, but inventory levels are still very low. This is causing a supply shortage for home buyers.
Experts don’t expect home inventory to change in 2023. According to Rick Sharga, executive vice president of market intelligence at ATTOM Data, 70 percent of homeowners are sitting on mortgages of 4 percent or less. That makes a rise in inventory unlikely while interest rates are sitting at or above 6 percent.
Will interest rates drop again to the record lows we saw over the past few years, or will they continue to climb? That depends on which economist you listen to. If you want to hear the opposing arguments from two leading macroeconomists, take a look at this Planet Money article titled Where Are Interest Rates Going? It explains their theories and how each outcome might affect the economy and your finances, including your home’s value.
North County and San Diego Housing Markets
The year-over median price dropped by 5.4 percent in North County and 2.4 percent in San Diego County as a whole. But, compared to the last six months, home prices picked up quite a bit in March with the median price close to what it was last July or August. Inventory, which should be rising this time of year, dropped to 1.1 months.
And although homes took at least twice as long to sell than they did last March, they are now selling more quickly at a higher percentage of their asking prices than they were earlier this year.
See below for this month’s statistics and daily interest rate updates.
Interest Rates
Market Updates
Click on the links below to read the San Diego real estate market reports.
- NORTH COUNTY MONTHLY INDICATORS
- METRO SAN DIEGO COUNTY MARKET UPDATE
- EAST SAN DIEGO COUNTY MARKET UPDATE
- SOUTH SAN DIEGO COUNTY MARKET UPDATE
- SAN DIEGO COUNTY MONTHLY INDICATORS
- 2022 SAN DIEGO COUNTY MARKET REPORT
North County Housing Summary
- The median price for all North County home sales decreased 5.4 percent in March 2023 compared to March 2022.
- Detached homes saw a median price decrease of 7.2 percent in North County, moving from $1,075,000 in March 2022 to $997,500 in March 2023.
- The number of sold units in North San Diego County decreased 28.8 percent compared to the previous March. Pending sales dropped 37.2 percent in the same period.
- Median days on market for North San Diego County properties was 34. This is a 161.5 percent increase from the previous March.
- Inventory supply in North San Diego County increased from 1.0 months in March 2022 to 1.1 months.
San Diego County Housing Summary
- The median price for all San Diego County home sales in March 2023 was $825,000. This is a 2.4 percent decrease from March 2022.
- Detached homes saw a median price decrease of 3.5 percent in San Diego County, moving from $975,000 in March 2022 to $940,500 in March 2023.
- Attached homes in San Diego County had a 1.6 percent median price decrease compared to the previous year. They moved down to $635,000 in March 2023.
- Inventory supply countywide in March 2023 increased from 0.8 months a year earlier to 1.1 months.