Builder sentiment slid into negative territory in August, as higher costs continue to impact buyers and builders alike. Buyer traffic has declined considerably this summer, + 19.1% – 19.0% with new home sales down 29.6% nationally compared to a year ago and falling to their lowest level since 2016, according to the U.S. Census Bureau. As sales slow and new home inventory piles up, builders are lowering prices to entice buyers, with about 1 in 5 builders cutting prices in August to boost sales and limit cancellations, according to the National Association of Home Builders. Market-wide, San Diego Real Estate inventory levels were up 20.7 percent.

Closed Sales decreased 30.5 percent for Detached homes and 33.4 percent for Attached homes. Pending Sales decreased 29.5 percent for Detached homes and 31.4 percent for Attached homes. Inventory increased 20.1 percent for Detached homes and 22.3 percent for Attached homes. The Median Sales Price was up 7.1 percent to $910,000 for Detached homes and 12.6 percent to $625,000 for Attached homes. Days on Market increased 40.0 percent for Detached homes and 33.3 percent for Attached homes. Supply increased 41.7 percent for Detached homes and 55.6 percent for Attached homes.

The overall Median Sales Price was up 14.3 percent to $801,573. The property type with the largest price gain was the Condos – Townhomes segment, where prices increased 19.2 percent to $615,000. The price range that tended to sell the quickest was the $750,001 to $1,000,000 range at 19 days; the price range that tended to sell the slowest was the $5,000,001 and Above range at 64 days.

The key to selling in a changing market is understanding where the housing market is now. It’s not the same market we had last year or even earlier this year, but that doesn’t mean the opportunity to sell has passed. Buyer demand hasn’t disappeared, it’s just moderated this year. If you’re thinking about selling your San Diego house, contact us today.