New housing numbers released by the California Association of Realtors for September sales show an increasing inventory and second straight month of price declines as investor appetite wanes and buyers find themselves priced out of the market by rising interest rates.
San Diego, however, bucked the statewide values trend, posting a 1.6 percent gain; the median home price in the county rose from $482,470 in August to $490,130 last month. While prices are up, according to the report, total sales volume is down significantly — the local market led most others in the state and all of Southern California with a 20.5 percent drop in transactions closed.
Slower sales are reportedly causing inventory to rise, with about 4.2 months’ worth of housing demand from San Diegans available on the market. That’s a significant jump from 3.4 months’ supply reported in August, but it’s comparable to numbers from a year ago and holds with historical patterns that show housing sales tend to dip in late summer and early fall. Inventory levels of less than 6 months’ demand are thought to be indicative of a market that will continue to appreciate.