San Diego Housing Data

September 2022

SDAR just released Sept housing data. The data showed that inventory is going down to historic lows again, even though interest rates keep going up. Usually, as rates go up inventory goes down. But they went up so fast the owners are not going to sell because they love their 30 year rate. The low inventory will help homes hold their value.

Values had been going down April through August, but during the month of September, due to low inventory, values actually began rising again. Median home prices rose 1.66% August to Sept from $900K to $915K. It’s odd for home values to go up in the fall. However, due to low inventory we expect to see home values hold, and maybe even increase a bit. I will be interested to see data from the upcoming months. There might be some fluctuation at the higher price points but overall no CRASH is coming.

Those who wait to buy will likely get a higher interest rate and likely even a higher purchase price. If we hit a recession and rates go down, buyers will flood back into the market and drive up home values further.