SAN DIEGO — While real estate transactions slowed significantly last month, San Diego set a new record last week for the most expensive home ever sold in the county, with a property in Del Mar that went for over $44 million to an anonymous buyer.
The number of homes sold in September reached the eighth lowest number in the region’s history amid high interest rates and expensive prices that have largely held firm.
“There’s more than 3 million people in San Diego County. In September, there were about 2,000 home sales, so that is a ridiculously low number of home sales for the amount of people who live here,” Philip Molnar, real estate reporter for the San Diego Union-Tribune, told FOX 5 Tuesday night.
The slowdown in sales transactions has been a standoff with current homeowners enjoying sub-3% interest rates and not wanting to let go of their financial arrangements made during the emergency pandemic low-cost borrowing.
Single family home prices dropped 1.2% in September year-over-year, according to Core Logic, a real estate data company. Meanwhile, condo and town home values jumped 5%.
Historically, the lack of inventory in the region has been the main driver of the shrinking number of home sales each month, but experts say September saw a bit of a change.
“It isn’t totally that there is just a lack of listings, it’s that interest rates are shooting up to at this point to 7.8 percent,” said Molnar.
Experts believe there could be a slight pullback in prices for the next few months, but do not expect any significant drops.
This comes as across town, in Del Mar, the highest priced home ever sold the county closed with a $44.1 million price tag. The waterfront house on Sandy Lane was bought by an LLC out of Delaware that shielded the buyer’s identity.
“Out of left field there is this $44.1 million sale — the highest ever in San Diego County,” Molnar said. “It doesn’t seem like it’s even in reality.”