San Diego Market is hot?

[Sarah Enero]

Hello everyone, just wondering now that the interest rates and housing prices have risen, is the SD market still as hot as it was 3-4 months ago? Are people still purchasing condos $100K over asking? Are people still seeing dozens of offers on a condo/townhouse? I've looked at Redfin and saw few active properties staying longer than 20 days but I also don't know what's going on in the backend. I know it can differ per price point but just wondering if someone can give insights on how the market is for $400-600K purchase. Thank you!

[Emy Bernardo]

I have some first time buyer clients in lower end of this price range (400-450k) looking for condos and I do think it's slowing down a bit - just in the last couple of weeks.   I'm seeing longer days on market, properties falling out of escrow (buyers cold feet) and a few of the condos that I've been tracking have actually sold for less than or at list price. It could be that this price range is made up of a lot of first time buyers using FHA or low down payment options w/ added PMI and they are more price sensitive. Also, it seems many listing agents don't factor in the cost of HOA/Special assessments when determining list price. Most buyers go by what the monthly payment is rather than the purchase price. Add PMI & HOA to the monthly PITI and these costs really add up. It seems many of the condos at the lower price range have high HOA fees (400+ a month) - combine that with a 1% increase in mortgage rates from a month or so ago and many first time buyers are getting priced out of the market or simply not willing/able to cover an appraisal gap/offer over list price.