The North San Diego County housing market experienced a rollercoaster ride in 2022, starting with strong buyer competition, low mortgage rates, and skyrocketing sales prices due to pent-up demand and a shortage of housing supply. However, as mortgage rates began to rise, the market started to cool down.
According to the 2022 Annual Report on the North San Diego County Housing Market, pending sales decreased by 29.3 percent and closed sales declined by 28.9 percent. The number of homes available for sale was up by 7.5 percent, with 1,322 active listings at the end of the year. However, new listings decreased by 12.5 percent. The percentage of closed sales that were either foreclosures or short sales increased by 25.0 percent, ending the year at 2.0 percent of the market.
Home prices were up in 2022, with the overall median sales price increasing 11.0 percent to $900,000. Single-Family Detached home prices rose 9.2 percent, while Single-Family Attached home prices increased 14.9 percent. On average, sellers received 101.2 percent of their original list price at sale, a decrease of 1.7 percent compared to the previous year.
The decline in home sales was due to affordability challenges, forcing many prospective buyers and sellers to the sidelines. Some buyers moved to smaller, more affordable areas, while others turned to the rental market where competition and rental prices increased. With rising costs and declining demand, homebuilders eased production, further limiting the supply of housing.
Looking ahead to 2023, much will depend on inflation, mortgage interest rates, and the state of the economy. Economists predict that many of the housing trends from 2022 will continue into the new year, with home sales expected to soften, price growth moderating, inventory remaining tight, and greater variability between markets nationally. Some regions may experience price declines while others, in more affordable areas, remain in high demand and experience price growth.
North County San Diego Real Estate Market Update (Detached Single Family Homes)
For the month of December 2022, the housing inventory is down
As of December 2022, there are 358 new listings for sale added to the North County San Diego housing market vs. 566 new listings for sale back in December 2021. This is a decrease of 36.7%.
The inventory of homes for sale in North County San Diego as of December 2022 is 996 homes vs. 958 homes in December of 2021. This is an increase of 4%.
The months of sales of inventory has increased significantly by 55.6% from 0.9 months to 1.4 months.
There are also 48.4% fewer closed sales.
Currently, the total number of listings in North County San Diego is:
|North County San Diego||Total Listings: |
|Cardiff by the Sea CA|
|Carmel Valley CA|
|Del Mar CA|
|Pala CA||[showcaseidx shortcode encountered an error]|
|Pauma Valley CA|
|Rancho Bernardo CA|
|Rancho Penasquitos CA|
|Rancho Santa Fe CA|
|San Marcos CA|
|Solana Beach CA|
|Valley Center CA|
How long does it take to sell a home?
The time it took to sell a home in North County San Diego also increased from 19 days to 36 days.
The median sales price is $950,000, still up 5.7%.
The average home sales price in North San Diego is $1,247,555, up 2.3%. North County is the highest priced real estate market in all of San Diego County.
Home sellers are getting less than their original asking price.
During the hot seller’s market of 2021, sellers were receiving on average 102.2% of their original asking price.
By December of 2022, home sellers are receiving 94.1% of their original asking price which is a decrease of 7.9% from December 2021.
When sellers finally adjust their listing price, they are receiving 97.6% of the list price, which is down 4.8% from 102.5% from the prior year.
What home buyers and sellers can expect in 2023:
Buyers in North County San Diego may expect home prices to soften.
They can expect to pay more per month on mortgage costs with higher interest rates around 6-7% vs. around 3% a year ago.
Sellers need to expect that the time to sell a home in North County is now taking longer. Home prices are softening. They may want to offer seller incentives to buyers such as credits to buy down the rate.
Home Buyer Strategies
Negotiate. Ideally, work closely with a trusted real estate professional, a buyer’s broker or agent (not the seller’s broker or agent) in your market to negotiate price and terms. In real estate, almost everything is negotiable such as price, terms, seller concessions, home repairs, etc.
Those who are using financing may want to buy down the rate or refinance later should interest rates become favorable. If interested in a new home, take advantage of any builder credit to lower the interest rate. If you are in a strong negotiating standing with the seller (not in a stiff competition with other buyers on a great house), ask for seller concession or credit to buy down the rate.
Plan to hold on to the house long-term and do your best to pick a home that will serve your needs for a long time. This saves you money in the long run by avoiding moving costs, real estate commissions, etc. When interest rates do come down eventually, refinancing to a lower rate will be huge instant savings.
Home Seller Strategies
Price your home right.
Prepare your home to sell.
Be flexible. Patient.
Negotiate. Ideally, hire your own seller’s broker to represent you in all negotiations.
Negotiations during the home selling process will come at different stages from 1. the initial offer 2. after the offer is accepted and when the appraisal is received (the house could appraise at a value over, under, or the same as the negotiated offer price), when the home inspection is completed, etc (the house could be clean as a whistle for major repairs, or the buyer may find deal-breakers that may need further negotiation or the deal falls apart). We strongly advise that you hire an experienced real estate professional to be on your side.
Selling a home?
Available San Diego County Real Estate Market Trend (1 page):
Selling a home?
- All of North County San Diego: Local Market Update from North San Diego County Realtors Market Statistics
- Carlsbad CA 92008: Local Market Update from North San Diego County Realtors Market Statistics
- Encinitas CA 92024: Local Market Update from North San Diego County Realtors Market Statistics
- Fallbrook CA 92028: Local Market Update from North San Diego County Realtors Market Statistics
- Oceanside CA 92056: Local Market Update from North San Diego County Realtors Market Statistics
- Rancho Bernardo CA 92127: Local Market Update from North San Diego County Realtors Market Statistics
- San Marcos CA 92078: Local Market Update from North San Diego County Realtors Market Statistics
- Vista CA 92084: Local Market Update from North San Diego County Realtors Market Statistics
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Read more from our blog: Your Two Year Plan To Buy and Sell
Written by Ken Tritle, Realtor®, Senior Real Estate Specialist (SRES®), DreamWell Homes Realty in San Diego County, Lic# 01777754 Call/text 760-798-9024, email firstname.lastname@example.org. Sign up for our Newsletter Email Guide to Relocating or Retiring to San Diego here.
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