📈 Home Prices Continue Their Climb
The spring market has delivered the kind of price growth many sellers were hoping for. In May, the median home price reached $429,300, marking the fourth consecutive month of increases and the highest level we've seen since last summer.
Lower mortgage rates have helped support this momentum, with the average 30-year rate easing to 6.37%, down from 6.76% a year ago. However, rising home prices are beginning to offset some of those savings. The average monthly payment came in at $2,201, only slightly lower than last year despite the improvement in rates.
As we move deeper into summer, affordability will be something to watch closely. If prices continue rising faster than rates fall, buyers may begin to feel the squeeze again.
🏠 Inventory Is Finally Catching Up
One of the biggest developments this month is that inventory has returned to roughly the same levels we saw a year ago. There are now 1.55 million homes available for sale nationwide, a welcome sign after years of limited supply.
New listings remain healthy as well, although the pace has cooled slightly from April's surge. This suggests sellers are still entering the market, but the peak of the spring listing season may be starting to level off.
For buyers, this means more opportunities and more choices heading into the summer months than they've had in quite some time.
👀 Buyers Are Coming Off the Sidelines
The most encouraging sign this month may be the return of buyer activity. Existing home sales climbed to 4.17 million, posting gains both month-over-month and year-over-year.
This is the strongest sales pace we've seen since the end of last year and suggests buyers are responding to a combination of improved inventory and slightly lower mortgage rates.
The question now is whether that momentum can continue. If rates remain stable or trend lower, buyer activity could continue to build throughout the summer. If rates rise again, some of that enthusiasm may cool.
⚖️ A More Balanced Market Emerges
For much of the past few years, housing markets have heavily favored sellers due to limited inventory. Today, the picture is a little different.
Inventory is growing, but buyer demand is growing alongside it. Because both supply and demand are increasing at a similar pace, the market is remaining relatively balanced rather than shifting strongly in either direction.
The next few months will likely come down to mortgage rates. Lower rates could push demand higher and give sellers more leverage. Higher rates could slow buyer activity and create more opportunities for buyers.
While national trends provide helpful context, San Diego's market often tells its own story. Strong demand, limited land for new development, and desirable coastal communities continue to shape local market conditions.
If you're wondering how these trends are impacting your neighborhood, home value, or buying power, I'm happy to provide a more localized look at what's happening right here in San Diego County.
