The California Association of Realtors reported on Tuesday that home sales in San Diego County and the state as a whole slowed in August.
While sales were up 3.2% over August 2023 levels, they were down 4.7% from July levels in the county.
At 262,050 units sold, the statewide sales rate for August was 6.3% lower than July’s 279,810 units, but 2.8% higher than the same period last year.
“While the market approached the end of the traditional home buying season, home price growth in California continued to moderate in August,” stated Melanie Barker, president of the California Association of Realtors.
Mortgage rates are anticipated to fall significantly from their recent highs, as the Federal Reserve has hinted at an imminent rate cut. Consequently, homebuyers will be able to take advantage of reduced borrowing rates in the coming months, and house affordability will improve in the fall.
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Only two areas in the state saw a decrease in sales from one year to the next: Southern California (a 2.3% loss) and the Far North (a 5% drop).
“Sold home sales pulled back in August as buyers evaluated whether to wait for the Federal Reserve to cut rates before entering the market,” Jordan Levine, senior vice president and chief economist at CAR, said, adding that this was despite a slightly stronger lending environment in recent weeks.
There has been a gradual improvement in house demand in recent weeks, according to pending sales and mortgage application patterns. We should see a steady increase in home sales as we approach the end of the year if mortgage rates stay low or fall more in the next weeks.
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Existing single-family house prices in San Diego County fell slightly from $1.02 million in July to $1.01 million in August, while they were higher than $1 million a year ago.
Existing single-family house prices across the state increased somewhat from $886,560 in July and $859,670 in August 2023, reaching a median of $888,740 in August.
Sign up to be a KPBS sponsor San Mateo County’s $1.9 million median price was the highest in August.
