SAN DIEGO (KGTV) -- Despite the still-high cost of living, San Diego’s housing market is beginning to cool down, according to a new report by Zillow.
San Diego ranked third on the list of housing markets seeing the biggest slowdown. San Jose and San Francisco, two markets also known for their high costs of living, places first and second on the list
The report shows that conditions in San Diego’s market are favoring buyers more than they did a year ago.
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More than 20 percent of homes for sale in America’s Finest City had a price cut in January of 2019, compared with only 12.4 percent of homes that saw a cut in January of 2018.
Of the homes that have sold, 95.7 percent sell for their listing price. At this time last year, 97.7 percent of homes sold for their list price.
The amount of time it takes to sell homes is also on the rise. In 2018, homes sold in 60 days, including time to close, Zillow reports. So far this year, homes are selling in 75 days.
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Even though the market is starting to cool, San Diego’s median home value is $591,400. In comparison, the national median is just $225,300.
“It is no surprise that the markets which pushed the bounds of affordability over the housing recovery are now experiencing significant cooling,” said Skylar Olsen, Zillow Director of Economic Research.
“As down payments and mortgage payments far outpaced incomes, buyer demand eventually exhausted itself. Those buyers looking in cooling markets will likely welcome the relief, although the entry price is still high. Inventory is returning and spending more time on market, meaning their decision making can be made with a cooler head.”
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