North County and San Diego real estate markets show a mixed bag of results this month. We should be seeing a robust market with unemployment and interest rates so low, but price increases are stalling out and sales continue to slow.
Experts cite several reasons for the slowing market, the 2017 tax changes that limit state and local deductions, trade wars, and fewer foreign buyers. Some think that home buyers are waiting for prices to drop. But San Diego County’s lack of available homes for sale may keep that from happening. Although we have been seeing inventory slowly creep upwards, it pulled back this month. If that continues, there will be fewer choices for home buyers.
The North County and San Diego Real Estate markets continue to show modest gains in year-over, median home prices. But this may be due to the pressure caused by low resale inventory and the lack of new homes in our market.
The real estate market is slowing down. Sales have decreased consistently in the first half of this year when compared to the same time last year. Will this slump continue? The San Diego Union-Tribune polled their local experts in their weekly Econometer column. Opinions were evenly split, but even those who felt this slowdown was not necessarily long-term did concede that prices have moved beyond most buyers’ reach. Some also noted that we are nearing the end of an economic cycle.
