San Diego Realtor Jeremy McHone goes over the numbers of the housing market in San Diego County for the month of May 2022.

I'm Jeremy McHone with the Whissel Realty Group. I just want to provide a quick market update for San Diego County. Now, we're filming this in May, which means that we're discussing the numbers that were for April, 'cause in real estate. there's always going to be a little bit of a lag when the data comes out. Also keep in mind, that the numbers for April for when a deal closes in April, that most of those deals are going to have been negotiated back in March. So, you're having a little bit of a lag but it'll still give you an idea of where we're at. Now, you may have heard the big news.

San Diego County has passed now $ past 1 million as the median home price for a detached house in the county. 660,000 for a condo. What got us here? Well, in the last year-over-year, we've seen a 20% increase in median sales price overall. Why is that? Because inventory is still super low. In fact, inventory is down 23% year-over-year. Now, if you watch my videos from around this time last year, you'll notice that even back then, I was already talking about super low inventory and how that was pushing prices up. Well, that low inventory dropped another 23%. So that's why we're seeing prices rise so quickly, which makes sense. We're also seeing interest rates rise at the same time right now. However, with inventory being so low, it's still continuing to push prices up.

So, one of the things we might see in the future though, with rising rates is, that they might actually exacerbate the housing shortage. And the reason why is, that a lot of homeowners right now have a very low-interest rate because they refinanced in the last year or two when rates were crazy low. Now a lot of those homeowners, when they look at the prospect of selling their home and buying a new one, they're also looking at potentially doubling their interest rate. So that might make a lot of homeowners decide to stay on the sidelines instead of putting their house on the market, which could cause the inventory to continue to drop even though rates are rising.

So, while it's getting more expensive to buy a home due to interest rates, even if some buyers fall out of the market, the lack of supply could continue to push prices up. So, what does this mean for you? If you're thinking about buying a home, I still think it's a good idea. Especially if you're weighing that against renting. And the reason why is, if you buy right now, it is tough to buy 'cause there are more buyers than there are sellers. However, prices and rates are going. If you buy now and rates continue to rise, in a few months or a year or two you may be really happy with that 5% interest rate when you see rates rise to 6 or 7%. Also, if in the future, rates drop, which eventually they probably will, then what's going to happen is prices are probably going to take a big jump.

Now, if that happens and you've already owned a home, not only are you going to take advantage of that equity gain, so you're going to see a big bump in your equity, but you're going to be able to refinance into that new rate so that you have a lower payment. So you're going to get the best of both worlds. If you have questions about what's happening in the market and how it pertains to you, drop a comment below or just DM me. I'm Jeremy McHone with the Whissel Realty Group.

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