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Monday, Nov 28, 2022
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Housing Prices Reach Record Levels

San Diego’s housing market is so hot heading into mid-year that agents report that buyers are paying well above the price sellers are listing – sometimes $100,000 or more regardless of appraised value.
“If you had told me this even 10 years ago, I would have looked at you like you had three heads,” said Nancy Layne, president of North San Diego County Realtors.
Multiple Offers
Even as home prices shoot up to record levels, agents report that multiple offers have become commonplace and buyers are accepting conditions that would have been deal killers not so long ago.
“Things that used to be harder to negotiate are just sort of a given right now,” said Michelle Kolker, a broker associate with Compass.
“As a seller, you’re pretty much going to get whatever you want,” Kolker said.
Angela Avilez, vice president of Century 21 Award, said that even at the lower end of the market, buyers are paying above listing price even if they have to put up the cash because appraisals are coming in low.
“I recently closed on a property that went $40,000 above appraisal, cash out of pocket,” Avilez said. “My client said, ‘I don’t care, I want the property.”


Fueling the Frenzy
Fueling the frenzy are mortgage interest rates that the Federal Reserve reported to have dropped below 3% in late April added to a scarcity of homes to sell.
The North San Diego County Realtors reported that in March, the latest month for which figures were available, the inventory of single-family homes on the market  was 65.6% below what it was in March 2020.
Similarly, the Greater San Diego Association of Realtors reported that in March, the inventory of homes on the market was less than a one-month supply compared to a little more than two months supply a year ago.
The two real estate groups had slightly different figures for the median price of a single family home, although both reported that prices were at an all-time high – $810,000 for the Greater San Diego Association and $791,000 for the North San Diego County Realtors.  They also agreed that the trend of rising prices was likely to continue for the foreseeable future.
Layne said she’s never seen anything like it in the more than 30 years she’s been in real estate.
“It’s an extraordinary market,” Layne said.
Carla Farley, president of the Greater San Diego Association, said that intuitively,  it’s unlikely that prices will continue to rise as they have of late.

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