Dr. Doom said in his podcast here that the California markets have had the most significant price declines, and the Bay Area, LA, and San Diego have ‘gotten creamed’.
He didn’t provide any data to back it up, so let’s look at what we have from the MLS which includes September data so we’re including the most relevant information.
San Diego County, All Property Types:
The San Diego County median sales price was $855,000 in June and July, and last month it was $792,500 – which was a 7% decline from the peak this summer. It was also 2% higher than in August. Is that creamed?
We’re coming off the greatest real estate frenzy of all-time, and now the Fed has caused mortgage rates to double in less than six months. All considered, I think we’re doing great, and better than expected.
These guys who just fling it around on their national platforms are doing undue harm to our market. Don’t listen to them until they get out of their mom’s basement and actually investigate what’s really happening!
Our stats:
September sales were down 36% YoY from September, 2021 which was part of the craziest frenzy of all-time. Sales were down 28% compared to September, 2019.
Lower sales are a result of lower inventory. The peak month of 2022 was July, when we had 3,585 active listings countywide. It was 63% lower than in July, 2019……but sales were only 28% less? I’ll take it!
For those wondering about the stretch between La Jolla and Carlsbad, the median sales price dropped 5% between August and September.
The average square footage dropped 4%.
The smaller, less-expensive homes will be the story for those paying attention. Most won’t be though, and instead just dwell on the pricing only with no thought of looking any further for an explanation.
My sister caught the peak.
https://www.zillow.com/homes/724-Silver-St-La-Jolla,-CA-92037_rb/250193257_zpid/
She would have done better with the right help.
7% Drop in house prices? Why? Have the prices of wood, labour and concrete dropped 7%?
The journey of a thousand miles begins with one step
7% seems like a big initial jump. At that rate, the housing will be affordable very quickly. Good for the young.
It could easily be in the 8s by the end of the year.
The Fed mismanaged it all the way up, it makes sense that they would screw it up on the way down too.