Home prices in California and San Diego dipped slightly in June — and sales plummeted for homes priced over $2 million — as buyers faced higher interest rates, the California Association of Realtors reported.
The median price of a single-family home in San Diego County was $950,000 in June, down 2.1% from $970,000 in May. But the price remained well above the $865,000 recorded a year ago.
The statewide median price declined 4% in June to $863,790 from a record $900,170 in May but remained over the $819,630 level of June 2021.
“California’s housing market continues to moderate from the frenzied levels seen in the past two years, which is creating favorable conditions for buyers who lost offers or sat out during the fiercely competitive market,” said CAR President Otto Catrina, a Bay Area real estate broker, on Monday.
“With interest rates moving sideways in recent weeks and fewer homes now selling above listing price, prospective buyers have the rare opportunity to see more listings coming onto the market and face less competition that could force them to engage in a bidding war,” he said.
Transactions involving the most expensive homes fell across California. Sales of homes priced $2 million and up plummeted 17.9% from May.
By contrast, sales of home priced under $500,000 increased 2.1% statewide in June.
“Excluding the three-month pandemic lockdown period in 2020, June’s sales level was the lowest since April 2008. Pending sales data also suggests we can expect additional retreating in the coming months,” said CAR Vice President and Chief Economist Jordan Levine.
“With inflation remaining high and interest rates expected to climb further in the coming months, the market will normalize further in the second half of the year with softer sales and more moderate price growth,” he said.