San Diego pending home sales drop in half as mortgage rates hit new all-time highs in October

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

Pending home sales — when sellers have accepted buyer offers but no deals have closed — fell 49.6% year-over-year in October in the San Diego metropolitan area, A said. redfin study Released on Friday. It was 33% nationwide.

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

Of the 10 most populous cities in the United States, only Phoenix had a higher pending sales decline than San Diego at 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.

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

The higher the interest rate, the higher the monthly payment for the buyer. That is, in some of the most expensive West Coast markets, sharp drop in sales. In other cases, some of the places that improved the fastest during the pandemic, such as Phoenix, are now fixing the fastest.

Redfin said there were other signs that the property market had cooled as mortgage rates hit their targets. Highest level in 20 yearsIn the last week of October, the number of people searching Google for “homes for sale” was down 32% year-over-year, mortgage applications were down 41% year-over-year, and people took home tours. also decreased. 33% per year (ShowingTime data).

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

  • New listings decreased by 18% year-on-year. In San Diego it was 25%.
  • 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. The San Diego subway 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%.

Homes in San Diego are still selling faster than the national average. The national median for home sales was 35, up from 27 a year earlier. San Diego home sales averaged 26.5 days, down from 27.7 last year.

Reliable sales price changes can take a month or more for a home sale to complete escrow, so calculating the period covered by Redfin takes time.

San Diego County Median Home Prices in September 4 months down It was still up 7.4% annually, according to CoreLogic.

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