Rise in Interest Rates Has Not Affected San Diego’s Sizzling Real Estate Market

Sad news for buyers as interest rates jumped almost 1 full percent from 3.5% to 4.5 % for 30 year fixed last month.  This is the largest hike in several years.  Reflective of overall positive economic news in the nation’s economy, the rise in interest rates forced buyers in escrow to make some hard decisions.  Such a rise in interest rates should equally show a slowing in sales, if you are a realist.   Not the case for San Diego.   Sales and demand actually rose as did our interest rates.

Here are June’s Stats Provided by San Diego Association of Realtors:

Total sales volume of single family residences: 

UP 16.887% compared to last year to ring in at 1,349,903,804 total sales

Average sales price:

UP 19.176% ringing in at $629,326K

Median sales price:  

UP 23.330% for a price point of $481,000

Average days on market: 

DOWN to 48 days a 38.462% drop compared to last year

Below is a year to date chart, also provided by San Diego Association of Realtors, illustrating the median sales price for condos and single family homes in San Diego.

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