NewsMaking It In San Diego


Housing market shows signs of cooldown

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Posted at 5:24 PM, May 09, 2022
and last updated 2022-05-09 21:50:57-04

SAN DIEGO (KGTV) — San Diegans who think owning a home here is just a pipe dream could start to see their fortunes change.

A new analysis from Zillow says the housing market is showing signs of cooling, a sentiment echoed by local realtors.

"I've seen more property having reductions, I also am seeing more properties start coming on the market," said Michelle Silverman, a realtor with Coldwell Banker. "If they're not priced right, you're going to start seeing reductions, reductions, reductions."

San Diego is still a seller's market, with demand so much higher than supply. CoreLogic says the median price for a home in the county was $805,000 in March, a nearly 19 percent gain over March 2021.

But a Zillow analysis released Monday said inventory is starting to rise. That could lead to record home-price appreciation cooling off, and home buyers finally having some choices in the market.

"That is adding a bit of competition between sellers and it is taking some of that competitive pressure off of buyers for the first time really since the pandemic began," said Jeff Tucker, a Zillow senior economist.

Still, Silverman cautions that those looking to buy for the first-time will need to expand where they search. While the market may be softening, the average 30-year fixed mortgage rate is now 5.27 percent, taking away buying power.

"If they could afford a home in the $700,000 range with a 2.3 percent interest rate, they might be in a $600,000," she said. "So that house is going to have different amenities."