CA: San Diego Sees First 2022 RE Price Drop

KPBS headline: San Diego sees first drop in home prices this year
By Tania Thorne / North County Reporter
Contributors: Mike Damron / Video Journalist
Published July 19, 2022 at 6:05 PM PDT…

Mortgage rates remain high but home prices in San Diego seem to be going down. New data from CoreLogic/DQNews shows the median home price in San Diego County dropped by 2.9% last month to $825,000.

This is the first time home prices in San Diego have gone down this year.

Jeff Tucker, a senior economist with Zillow, says this is a trend they are also seeing. “We are also seeing prices actually start to decline on a month over month basis in San Diego," he said.

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In San Diego for 2021, there were 10,188 building permits pulled, another 9,000 or so building permits have been pulled so far this year.……

You can see that after April, Market Action began falling behind inventory and properties with a price decrease followed suit. San Diego is a very big county and there’s lots of room for new construction. This is especially true the farther you go toward La Mesa and El Cajon. These prices are more elastic. If you want to buy around Mission Beach, there is not room for increasing inventory and the prices are going to continue to increase.

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Good info. On a related note, I placed a couple of links on this board about a month or so ago discussing how hedge funds were buying stalled real estate projects on the cheap until things turn around and the demand at a profitable price comes back. That end of the market is picking up, i.e., hedgies buying developments in all stages - especially land - which has already been approved for buildout.

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