Welcome to the Coronado Market Update Corner
Rising rates. Rising inventory. Falling Demand. The story keeps developing and the market shift has intensified. The insanity of the seller’s market we have seen for the past couple of years is finally ending.
The economist Steven Thomas said it best: “When surging home values are met with elevated mortgage rates, we are left with a swift erosion of affordability in the market. This results in fewer options for buyers to choose from due to the higher monthly payment that comes with the elevated rates.”
Higher prices were not a problem when rates were around two to three percent and buyer demand was through the roof; however, today’s 6% mortgage rate, according to Mortgage News Daily, is a significant jump that has squeezed buyers swiftly. As a result, the demand for San Diego County Real Estate has weakened in general.
What’s the National appetite for luxury housing?
While many major cities saw residents flee at the onset of COVID-19 lockdown, other cities saw spikes in the sales and prices of high-end properties.
The southern part of the U.S. experienced an increase in luxury homes sales according to data published by the California Association of Realtors. Nearly a quarter of Austin, Texas home sales were considered luxury. Luxury sales in Miami shot up 101.1% since 2020.
The median list price for Coronado is $4,500,000 for single family homes and $1,995,000 for condos. The market action index is hovering around 54. This is less than last month’s market action index of 58. Inventory has increased to 19 currently listed single family homes and 18 condos compared to last month’s 14 and 16 respectively. We currently have 14 single family homes in contract (2 less than last month) and 13 condos. 12 SFHs and 9 condos sold in May compared to 15 SFH and 12 condos in April.
And how about rest of San Diego County?
It is interesting to note the tremendous increase in listings throughout the county. In February of 2022 we only had 81 listings entering the market according to California regional multiple listing service. In the month of March, we had 185, In April it increased to 534 and in May we had a whopping 1,783 homes listed in San Diego County. The data reflects the state of the market and the sentiment of the buyer and sellers.
I will continue to monitor the market carefully and I will report the changes as the summer months approach. For detailed information about your property please submit a request for information on my website www.CoronadoShoresRealtor.com or you may contact me on my cell phone at 619-453-4513.