The Market

December 2022 Market Update

Interest Rates

This week, conforming and jumbo rates are back to the low 6’s (remember condos, lower FICO scores, etc. will be in the mid 6’s). Government backed
mortgages are in the mid 5’s.

Median Home Price

San Diego’s median home price is currently $753,500.

Days on Market

San Diego County homes are on the market an average of 21 days this month.

Active Listings

There are currently 4,127 homes on the market, up from 2,253 in January of this year.

Take Away

Owning a home is still one of the best investments you could make.

Forecasting San Diego Home Prices

Home prices are leveling currently after an incredible multi-year run up. But the question now becomes whether this is a temporary slowdown to be followed by additional home price appreciation in 2022 or if this could be the top with a potential drop in prices next year. I read many real estate blogs, articles, and analysis. For example, CoreLogic is a widely read quantitative forecast of residential real estate trends. First I can say that there is a slight drop-off in active buyers currently. Some buyers, after submitting many offers all
year, are taking a break from the home search. At the local Realtor meeting, other agents are remarking that instead of the usual 20 to 30 offers on a property, agents are receiving maybe four to 10 offers now.

Changes to California's Property Tax Laws

California’s Proposition 19 property tax reform law is now fully in effect, several months after voters approved it by a slim margin on the November 2020 ballot. It is officially known as The Home Protection for Seniors, Severely Disabled, Families, and Victims of Wildfire or Natural Disasters Act.

Reading the title gives you the sense of who the big winners are when making transactions for Pacific Beach property. What’s not in the title is any mention of another group that it affects just as much.

How Does Inflation Affect Real Estate?

does inflation affect real estate > The Market

We’re hearing a lot in the news about inflation right now.

The inflation rates have been going up at record-breaking paces. Some of that is to be expected during a period of economic recovery following the COVID-19 pandemic, but there are concerns being echoed by some financial analysts.

Inflation refers to the decline of purchasing power of a currency over time, to put it somewhat technically. Basically, what inflation means is that you have less purchasing power with the same amount of money.

So, how does this affect real estate?