What is happening in the San Diego Housing Market in the month of February 2022? San Diego realtor Kyle Whissel goes over the market-leading indicators. Discussing the housing inventory, interest rates, and his predictions on where the market is heading.
Your San Diego Real Estate Market Update
What's going on in the San Diego Real Estate Market in February of 2022? I'm Kyle Whissel with Whissel Realty Group. And I want to share with you the information that you really need to know more than ever before in this video to help you understand, should you be buying? Should you be selling? What should you be doing in this market? Because I've done this for 20 years now and this may be the craziest market I've ever seen in 20 years. So, let's talk a little bit about the stats and then I'm going to tell you my opinion of what I think is happening right now.
Number one, the number of new listings which is how homes have come onto the market for sale in the last 30 days versus the same time period, one year ago is down 20%. So we have a lot fewer homes coming on the market than we did the same time a year ago. On the other side of the coin, how many homes are going off the market are going under contract? That's also down. Now, you might say, well, why is that down? I hear that it's crazy out there and people are buying everything. That's true, the problem is, there are just not enough homes for them to buy because there are fewer and fewer homes being listed, so there are fewer homes to buy.
So, while this story here says that pending are down 14%, we'll talk more about the story in a minute. So what happens? Well, the new homes are down more than the pending homes. What that means is supplies still continue to shrink. That's down 50% from the same time period a year ago and homes are selling 21% faster than they were the same time a year ago. Now, what is really going on? Well, one, we've seen the first big jump in mortgage rates that we have seen in a long long time. Rates now are back to at or above where they were prior to COVID. We're starting to see rates up in the high threes, sometimes even the low fours especially on an investment property right now.
And now I've done this for 20 years, what I've seen happen and what I've seen that's happening today, anytime there's a jump in mortgage rates that actually where you might think, it would scare people away from buying a home is actually pushing them to buy sooner than what they were planning. Because what buyers are seeing right now is that, oh crap, rates actually are going up right now, if I wait any longer I'm not going to be able to afford something, I better go buy a home right now before I get stuck with a four-and-a-half or 5% rate 'cause then I won't be able to afford anything. So, as homes become less affordable I know this defies logic as homes become less affordable, more people want to buy homes. There's a scarcity mindset, people want to have something before they can't have anything at all, so they're grabbing whatever they can.
So we are seeing, I would argue with you in the last 60 days, we've seen at least 5% appreciation, at least if not more, we're starting to see homes, we listed one recently the most recent sale occurred at 725, we're pending at 825. Got another one we listed the last sale was at 1,000,025, we went pending at 1,000,355. We're seeing this over and over and over again. We're starting to see jumps of five, 10, potentially even more than that right now because there's just nothing for sale. Half a month, supply of homes for sale. That would mean if nothing else came for sale, in half a month, we'd run out of homes.
So, if you're watching this, you're trying to figure out like, what do I do in this market? If you're thinking about buying, buy now I'm telling you, I'm trying to buy as many properties as I can right now actually put an offer in on a portfolio of five properties over the weekend because I'm 100% confident that you are going to see double-digit appreciation in 2022. In fact, I think you'll see double-digit appreciation in the first quarter of 2022. So if you are confident, the values are going to go up, like I'm confident, you want to own as much property as you can, so you can take advantage of home prices rising. You do not want to be chasing home prices as they can continue to go up.
Because if you have home prices going up and rates going up simultaneously, your affordability is getting crushed right now. So, I would strongly encourage if you've been thinking about buying, get in the game now and take advantage of this appreciation as opposed to chasing the appreciation. Now on the flip side, if you're thinking about selling should you sell? The answer on this site is it depends. If you're going to sell your home and go rent, I think that's a horrible idea. I just told you prices are going to continue to rise. Why would you want to get out of your house to go rent something and then watch whoever buys your house take advantage of that appreciation? So, if you're thinking about selling and then renting, don't do that, that's a whole horrible idea. And plus you'll find out rents have gone through the roof just like home prices have, where rents are up about 17% from the same time a year ago. So, rents are a lot of money. You're talking one-bedrooms in San Diego are well over $2,000 a month just for a one-bedroom apartment.
Do you want a nice house in a nice area? You might be talking eight to $10,000 a month for a nice house in a nice area. So, make sure you really thinking about this before you pull the trigger. So then let's talk about a couple of the other scenarios with selling. If you're selling and moving out of the area and maybe you're moving out to one of the no-tax states we had a ton of clients going to Nevada, to Texas, to Tennessee, to Florida, that could make a lot of sense. There's a little bit less in some of those markets where it's a feeding friend are here, you're going to be able to sell your home at an amazing price here and go buy in one of those other states where you want that political climate, maybe you want the no tax, maybe you want just a different climate overall that could make sense for you or the one that really makes a lot of sense right now is if you're selling your smaller house or condo and buying a bigger house or condo that could make a lot of sense for you because the lower the price point right now, the higher the competition.
So you can sell where there's virtually nothing for sale and there's a lot of competition. And then as you start moving up to that higher price point, there's less competition. So, sell where there's high competition, but where there's low competition, that's the perfect scenario. And again, prices are going to continue to increase, so, do you want to hold the million-dollar asset or the $2 million assets? If you know prices are going to increase, probably want to hold the $2 million assets, right?
So that's where the market is at today. If you're thinking about buying you're thinking about selling our team here at Whissel Realty Group would love the opportunity to guide you through that process. Give us a call, shoot us a text at the number below or throw a comment on this video. We'd love to talk to you a little bit more about your goals and how we can help you accomplish 'em. I'm Kyle Whissel with Whissel Realty Group, thanks for watching.
