As we move through October, the numbers tell us that activity has slowed down in the higher price ranges of our market.
Fall is here, which means it’s time for your October 2019 market update. As always, we’ll look at several key indicators and the numbers behind them—this time from the period between August to September:
- The median sale price dropped from $720,000 to $700,000
- The average days on market increased from 37 to 38 days—as you may recall, this number was around 30 or lower in previous market updates
- The housing supply dropped from 2.9 to 2.7 months
- The number of total sales dropped from 962 to 846
- Interest rates dropped from 3.75% to 3.5%
What do these numbers mean? If you have a home listed above the median price, you might’ve noticed that things have slowed down. This often happens in a market where prices appreciate and affordability decreases.
As far as the drop in interest rates goes, people often assume that when rates go down, market activity and home prices go up. Well, the truth is, lower interest rates aren’t like caffeine for the housing market. There are plenty of historical examples of home prices dropping right alongside decreasing interest rates. And as you can see above, the median sale price and the number of sales have dropped as interest rates have dropped.
My team has about a half-dozen homes listed for sale, and these stats are congruent with what we’re seeing. Homes that are listed in the more affordable price points—if they’re marketed well—are moving quickly, but in the higher price points, things have slowed down quite a bit.
As always, if you have any more questions about our North San Diego County market or you’re thinking of buying or selling a home, don’t hesitate to reach out to me. I’d be happy to evaluate your specific situation.