San Diego Market Watch - Real Estate Update For January 2, 2025

The number of homes for sale in San Diego County is as low as it has been since the beginning of last year. And by last year, I mean 2024, because it is January 2nd, 2025. Happy New Year and welcome to everybody's favorite real estate information program, San Diego Market Watch. If you're new to this channel, please give us a New Year like and subscribe so you don't miss any of these weekly updates. And we will be back full force a little later this month with all of our zip code updates. So stay tuned for that. We've got great things planned in 2025. Looking at the number of homes for sale, it has just been steadily downhill since the beginning of October. Over the last three months, we've gone from nearly 5,000 units all the way down to just over 3,400. The number of new listings really dropped in December. Of course, the holidays, not a lot of people putting homes on the market. However, this data point right here, the week of Christmas at 160 new listings for the entire county is about as low as I have ever seen it. We did bounce up off of that over the last seven days and pending sales did decline a little bit over the past seven days. So basically a market reset. As we head into 2025, we will see what the data looks like from here. It's anybody's game at this point. If the number of new listings continues to increase and pending sales remain low, obviously that creates more supply than demand. Or if they just keep doing what they've been doing over the last several months and sort of running in parallel, things will largely stay the same with incremental ups and downs between months regarding median price. Now, looking at interest rates over the last seven days, oh my goodness, almost back up to 7% again. Interest rates just have been on a roller coaster ride. We did have some bright spots as we headed into the fall of last year. And it's been pretty steadily up with a few exceptions over the last, oh, eight, nine, 10, 12 weeks or so. 6.91% is the Freddie Mac seven-day average. And we sure hope, as I always say, we sure hope to see these come down as we head into 2025. Obviously these rates are nothing like the rates that we saw 40 years ago when rates were well above 10 and 12 and even above 14%. However, with median price where it is right now, the affordability factor is huge when it comes to interest rates. And the high rates not only keep buyers on the fence, but they keep sellers on the fence as well because most sellers do become buyers when they sell their house. And they don't wanna sell their house if they're sitting on a three or a 4% mortgage. So we need those rates to come down to stimulate more real estate activity in the market, which helps a lot of industries across the board when more homes are selling. Looking at median price from October to November, we don't have the December numbers yet. It was down slightly. Median price has been on a bit of a rollercoaster ride too, although the trend over the past few years has definitely been up with periods of dropping, reduction, falling, whatever you wanna call these down months. Are we heading into another down month or is it gonna pop back up? We will see when we get the December numbers and we will see what happens as we head into 2025. That's what's going on. As always, if you like this content, please remember to like, share, subscribe, and comment. We're gonna be coming at you full force in 2025, so stay tuned and please let us know if you have any questions about buying or selling real estate anywhere in San Diego County. We are here to help. Happy New Year. Have a great day.