San Diego Market Update

Mortgage interest rates ticked a bit higher in February, but remain below their February 2020 levels. Interest rates may rise a bit further in coming weeks, but according to Freddie Mac chief economist Sam Khater, “while there are multiple temporary factors driving up rates, the underlying economic fundamentals point to rates remaining in the low 3 percent range for the year.” With rates still at historically low levels, home sales are unlikely to be significantly impacted, though higher rates do impact affordability.

Closed Sales increased 4.2 percent for Detached homes and 8.8 percent for Attached homes. Pending Sales increased 1.5 percent for Detached homes and 12.7 percent for Attached homes. Inventory decreased 60.0 percent for Detached homes and 52.1 percent for Attached homes.

The Median Sales Price was up 15.2 percent to $777,777 for Detached homes and 14.7 percent to $512,500 for Attached homes. Days on Market decreased 30.8 percent for Detached homes and 20.0 percent for Attached homes. Supply decreased 60.0 percent for Detached homes and 52.6 percent for Attached homes.

For homeowners currently struggling due to COVID-19, government agencies are continuing efforts to help those in need. The Federal Housing Finance Agency announced they will allow homeowners with loans backed by Fannie Mae and Freddie Mac to receive an additional three months of forbearance, extending total payment relief to up to 18 months. Qualified homeowners must already be in a forbearance plan as of the end of February