San Diego County home sales crashed in September at one of the highest rates in the nation as mortgage rates neared a three-year high.<\/p>\n
A new report<\/a> from Zillow said pending home sales in San Diego County fell 13.1% in September from the same time a year ago. A pending sale refers to a transaction where the buyer has accepted an offer, but the deal hasn\u2019t been finalized. It is often one of the first indicators of a market downturn.<\/p>\n San Diego had the fifth-largest drop in pending home sales in the nation during September, out of the 20 largest metro areas.<\/p>\n Los Angeles had the biggest drop, down 15.5%. It was followed by Seattle (down 15.4%), Washington, D.C. (down 14.3%), and Baltimore (down 13.8%). San Francisco, in the middle of an artificial intelligence tech boom<\/a>, had the smallest drop at 4.5%.<\/p>\n \u201cSky-high mortgage rates and the usual fall slowdown teamed up to chill housing activity in September,\u201d said Zillow chief economist Mischa Fisher.<\/p>\n It is likely rising mortgage rates were already affecting the market before the latest pending sales data. Zillow said closed sales in San Diego County were down 9.3% annually in September, which was tied for the second-biggest drop in the nation. September\u2019s closed sales likely covered transactions started in August or late July.<\/p>\n Only Atlanta had a bigger drop in closed sales, down 11.2%. San Diego was tied with Providence, R.I., also down 9.3% annually.<\/p>\n Fisher noted that the average 30-year, fixed-rate mortgage was 7.28% at the end of September, according to Freddie Mac <\/a>data. That was the highest level for rates since November 2023, and he reasoned it scared off numerous potential buyers.<\/p>\n In late February, the average mortgage rate was 5.98%, meaning monthly costs for most purchases have significantly risen.<\/p>\n San Diego County\u2019s median single-family home price has been around $1 million<\/a> for most of the year. Assuming 20% down ($200,000), the monthly payment would have been about $5,160 if the purchase was made in late February. Using late September mortgage rates, the monthly cost would be closer to $5,850.<\/p>\n