San Diego Home Prices Plummeting

A report from the investment bank Goldman Sachs found that San Diego; San Jose; Austin, Texas; and Phoenix were all likely to see sharp declines in home prices over the next year that could lead to a housing market crash similar to what the United States experienced in 2008.

In San Diego, home prices fell almost $100,000 in the past year according to CoreLogic, a California-based financial services company.“This is really still — because we still have so little inventory — it’s still technically a seller's market, but I think we’re still heading toward a more neutral market, which is great, but that comes with buyers being more selective on what they’re spending their money on because interest rates are higher,” said Jessica Tangen, a San Diego Realtor.

Home prices declining is not a surprise to many economists since the Federal Reserve increased interest rates during the past year to combat inflation. Some say the slowing housing market could be an indicator that a recession is on the horizon. “My prediction for 2023 is that we would have a 70% chance of a recession," said Alan Gin, an economist from the University of San Diego."It’s not certain, but it’s a strong possibility, and if we do have a recession, it would likely be caused by the Federal Reserve raising the interest rate and it impacting the housing market."

With home prices declining, there are fewer listings on the market and fewer sales. According to Redfin, sales in San Diego County were down almost 50% in December compared with the year before. A decrease in sales has also translated into homes being on the market longer. According to Redfin, the median number of days a home was on the market in December was 33 days, which is 21 days longer than a year prior.

Source: News Formal (newsformal.com)

Yayy then maybe I can finally afford a house

Well housing sucks here in San Diego for Renters I couldn’t imagine even buying a house here! I’m a native! Born and Raised. I’m force to Roomate at my age 60 years old still following someone else’s rules! We just want to live comfortably ,fairly.Not choose health or rent!

This would be great if this happened and then I will buy!

I really would like this to happen but in my personal opinion it won't happen to San Diego. You need to live here to see such demand. There are many out of town and out of country investors. It might cool down a little bit but prices won't decline

They will fall, but not like 08 where we saw people go under who were like 10 year owners. This will effect 1-3 year owners the most. I still can’t build they, want to meet low income quotas first. So flipping it is.

hernanfabian22

Bullshit. Been here for eight years, and saw home expenses blow up within the last four.

Let's gooooooooo!

Good. It’s gotten way out of control

I will believe this when I see it

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