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SAN DIEGO — Mirroring a cooldown seen across the country, San Diego home values dipped slightly last month, according to market reports.

Buyers are adjusting to higher interest rates, more costly mortgage payments and a new economic reality, according to Zillow’s analysis of data for July. That follows two years of “stunning growth,” the real estate website wrote, so costs remain far higher than they were just a few years ago.

San Diego saw a dip of 2.5% from June to July, bringing the typical home value to $894,246, according to Zillow. That remains 50% higher than July 2019.

“The slowdown is being driven by decreased competition among buyers – affordability pressures have pushed many to the sidelines,” analysts wrote. “The most competition right now is for the least-expensive homes, and buyers are waiting in the wings to resume their search, if and when prices relax a bit.”

The mortgage payment on a typical home in the San Diego metro area is $4,791 a month, including taxes and insurance, which is up about 82% from this time in 2019.

Home inventory rose just under 10% from June to July, and the share of listings with a price cut last month was 23.6%, compared to 17% in June, Zillow said.

San Diego renters didn’t see the same relief: The typical rent is a staggering $3,126, and that’s up 1.2% since June.

Across the U.S., the National Association of Realtors said Thursday that existing home sales fell 5.9% from June. That’s lower than what economists were expecting, according to FactSet.

The Associated Press contributed to this report.