San Diego County Housing Report: A 2023 Forecast
Call George Lorimer to Sell Your Home at 619-846-1244
HAPPY NEW YEAR!!!
Now, what does that mean for San Diego County real estate?
First, let us look back at what happened in 2022 in terms of inventory,
demand, luxury properties, and the Expected Market Time.
WHAT'S YOUR HOME WORTH?
Active Inventory - After starting the year with a record-low number of
available homes to purchase, the inventory soared higher but is still far below pre-pandemic levels.
The year started off with an active inventory of 1,254 homes, the lowest level to start a year since tracking began in 2012. The average start prior to the pandemic was 5,270 homes, so there was nearly nothing available in January. Yet, with a rapidly rising mortgage rate environment, demand slowed substantially as the year progressed. After starting 2022 at 3.25%, rates eventually surpassed 5% in May and eclipsed 6% in June. As a result, the inventory rapidly grew from mid-April until it peaked at the beginning of August at 4,806 homes, a rise of 283% from January 1st. The 3-year average peak prior to COVID (2017 to 2019) was 7,354 homes, 53% higher than this year. From August through year’s end, the number of available homes decreased to 3,148, a bit higher than the end of December 2020 levels and 41% below the 3-year average end to December prior to the pandemic of 5,365.
The inventory would have dropped even more during the Autumn market, but rates eclipsed 7% in October and took an even larger bite out of demand. Many sellers stagnated on the market without success. That changed during the holidays as rates dropped into the lower 6’s, and the inventory dropped by 1,112 homes in the last 6 weeks of the year, down 26%. The inventory is poised to drop below 2,800 upon ringing in a New Year, still not enough available homes to purchase. Click here to download the full report
Trade-In Program
Call George Lorimer to Sell Your Home at 619-846-1244
HAPPY NEW YEAR!!!
Now, what does that mean for San Diego County real estate?
First, let us look back at what happened in 2022 in terms of inventory,
demand, luxury properties, and the Expected Market Time.
WHAT'S YOUR HOME WORTH?
Active Inventory - After starting the year with a record-low number of
available homes to purchase, the inventory soared higher but is still far below pre-pandemic levels.
The year started off with an active inventory of 1,254 homes, the lowest level to start a year since tracking began in 2012. The average start prior to the pandemic was 5,270 homes, so there was nearly nothing available in January. Yet, with a rapidly rising mortgage rate environment, demand slowed substantially as the year progressed. After starting 2022 at 3.25%, rates eventually surpassed 5% in May and eclipsed 6% in June. As a result, the inventory rapidly grew from mid-April until it peaked at the beginning of August at 4,806 homes, a rise of 283% from January 1st. The 3-year average peak prior to COVID (2017 to 2019) was 7,354 homes, 53% higher than this year. From August through year’s end, the number of available homes decreased to 3,148, a bit higher than the end of December 2020 levels and 41% below the 3-year average end to December prior to the pandemic of 5,365.
The inventory would have dropped even more during the Autumn market, but rates eclipsed 7% in October and took an even larger bite out of demand. Many sellers stagnated on the market without success. That changed during the holidays as rates dropped into the lower 6’s, and the inventory dropped by 1,112 homes in the last 6 weeks of the year, down 26%. The inventory is poised to drop below 2,800 upon ringing in a New Year, still not enough available homes to purchase. Click here to download the full report
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San Diego Market Statistics
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