Pending Home Sales Decline in Half in San Diego in October as Mortgage Rates Rise

This is another sign that the San Diego homebuying market is slowing.

Pending home sales — where sellers have accepted buyer offers but haven’t closed deals — fell 49.6% year-over-year in October in the San Diego metropolitan area. redfin study Released on November 4th. The drop rate was 33% nationwide.

Pending home sales are often viewed as a key indicator of existing home sales, as contracts are typically signed a month or two in advance of the sale.

Of the 10 most populous cities in the US, only Phoenix had a bigger drop in pending sales than San Diego (54.3%). San Jose decreased by 47.1%, Chicago by 44.2%, Houston by 40% and Los Angeles by 38.8%.

Nationwide pending sales have not declined since at least 2015, according to Redfin.

home loan interest rate Highest level in 20 years, they increase the buyer’s monthly payment. That is, in some of the most expensive West Coast markets, sharp drop in sales. In other cases, the fastest growing locations during the COVID-19 pandemic (such as Phoenix) are now rapidly declining.

“The decline in mortgage rates could take longer than many expected,” said Taylor Ma, deputy chief economist at Redfin.

Redfin said there were other signs that the property market had cooled. In the last week of October, Google searches for ‘homes for sale’ decreased 32% year-over-year, mortgage applications decreased 41%, and the number of people who took home tours decreased by 33. % decreased (data from ShowingTime).

Other national metrics and how they relate to the San Diego metropolitan area:

  • New listings were down 18% year-over-year. 25% in San Diego;
  • Active listings grew by 7.4 year-over-year, and San Diego grew by 34.4%.
  • Approximately 34% of homes received an offer within two weeks. In San Diego it was 41.2 weeks.
  • In the four weeks to October, the average sales-to-sale ratio was 98.7%, an indication of how close homes are to final asking price. In San Diego, it was about the same at 98.6%.
  • On average, 7.9% of homes sold each week saw a price drop. In San Diego it was 8.7%.

San Diego sells more homes than the national average. Nationally, homes sold in a median of 35 days, up from 27 days a year earlier. In San Diego, median home sales were his 26.5, down from 27.7. ◆

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