SAN DIEGO (KGTV) -- Home sales in San Diego are starting to see a dramatic decrease, according to a new report by CoreLogic.
Year-to-year, home sales fell nearly 18 percent from September of 2017 to September of 2018. From August to September of this year, home sales fell nearly 22 percent. Since 1988, the average change in sales between August and September is only 9.8 percent.
“The nearly 18 percent year-over-year drop in Southern California home sales this September was the largest for any month in almost eight years,” said Andrew LePage, a CoreLogic analyst.
Also in September, sales of newly-built homes in Southern California were 46.6 percent below the September average since 1988.
The drop in home sales is due to higher prices and rising mortgage rates, according to CoreLogic. Those factors are pricing out some would-be buyers and prompting others to wait and see what happens with the housing market.
The median home price in San Diego County in September of 2018 was $575,000, up nearly eight percent from the same time last year, however, the median price fell by 1.4 percent from August to September of 2018.
“Price growth is moderating amid slower sales and more listings in many markets,” LePage said. “This is welcome news for potential homebuyers, but many still face a daunting hurdle – the monthly mortgage payment, which has been pushed up sharply by rising mortgage rates.”