San Diego Real Estate Update April 2022

SAN DIEGO REAL ESTATE UPDATE    

The average asking rent in San Diego County was $3,181 a month in February, which marked a 19% year-over-year increase. 

As quickly as San Diego's rents have been climbing, they remain vastly outpaced by the rise in monthly mortgage payments, which reached a median of $3,524 in February, assuming a 5% down payment. The mortgage payment in February was 31% higher than it was a year earlier.

News outlets love touting decreasing sales volume as a sign of things slowing down. A drop in sales volume on its own does not explain the situation as a whole. Data is only as good as the context you give to it. 

For instance, available inventory of homes for sale is extremely low. In 2018 we had 14,000 available homes for sale. This month we have under 2,000 homes for sale in San Diego County (40% less than last year, which was already really low), plus new listing volume is down 13% year over year. 

One must also factor in that the average days on market to sell a home fell to 18 days last month, which is tied with July of last year for the lowest mark we've ever seen.

While interest rates may affect the entry level buyer more than the move up or move down buyer, until we have more homes on the market, I believe home appreciation will continue, albeit, more moderately.