Here’s a look at what’s been going on in the market and what’s to come.
The high-balance loan limit just increased to almost $880,000 in San Diego County—what does that mean for the housing market as we head into 2022? Today I’ll share the latest stats from our market and give you some insight into what we can expect from the coming year.
The median home price for detached homes has held steady at around $860,000 for the last few months. The attached home market—condos and townhomes—increased last month by $30,000. That’s over a 5% gain!
So why is this all happening? Well, the data shows what’s going on very clearly. Single-family homes are becoming less and less affordable, so the prices remain relatively flat. The percentage of the original list price to the actual sales prices has essentially remained flat as well.
Also, the days on market are starting to climb; they’re up to 24 days for single-family homes, which is up from 22 days last month and up from 18 back in July. It’s taking almost a week longer to sell a single-family home now than it did about six months ago.
Those who are being priced out of the single-family market are being driven into the condo and townhome market. That’s pushed the days on market for detached homes down, and sales prices are increasing as well. Part of that is due to the rapid appreciation that occurred last month.
As I mentioned before, the loan limits are being raised significantly for conventional loans; you can go up to $879,000. That will increase affordability in the detached home market. In early 2022, we can expect many people to enter the housing market again since many people have been waiting to buy and list until spring. The spring season will likely bring a lot of activity to the market, meaning that competition for both buyers and sellers will be higher then.
If you have any questions or need assistance with buying or selling a home, don’t hesitate to give us a call. Let’s talk about your different options.