SAN DIEGO — The median price of a home in San Diego county has dropped by 10% according to CoreLogic, the data service that tracks home prices.
In November, the median home price in the county was $765,000, just a few months earlier in May, the median home price was $850,000.
The number of homes sold is also declining, this includes single family, condos and townhomes and real estate professionals blame pricing.
"There was a time, we call it a froth, and those over inflated prices they weren’t real prices so right now we’re coming to a normal market if you will,” Matt Sorensen, Coldwell Banker realtor, said.
Sorensen showed CBS 8 a 3,900 square foot home in Encinitas that recently had to drop it’s price by $100,000.
"Look if you want to sell, you’re going to have to come down and that’s the bottom line. The most motivated sellers are going to drop their prices until they find the right buyer," Sorensen said.
It's been a hard sell because just two years ago we saw a housing boom.
"They look at their neighbors and go, wait a minute, you’re saying I can only get $800,000 for mine, when six months ago my neighbor got $1 million down the street and it’s the same model match," Frank Powell, Incoming president San Diego Association of Realtors said.
But dropping prices doesn’t make a home more affordable. Frank Powell, the incoming president for the San Diego Association of Realtors sees interest rates making potential buyers nervous.
"When you’re out shopping and the price goes up and the interest rates go up and you’re buying power goes down, so now they’re holding back saying I can’t afford this house in Clairemont for $900,000 because now there’s a 7% interest rate," Powell said.
Some real estate experts are calling this a gap between what sellers want to sell for and what buyers want to pay, given the interest rates. Those tracking real estate say the prices are moderating and expect it to continue to do so. But if the numbers continue to go down. Those that bought at the height of the market will see their home values decline.
"Real estate has always been a long term investment," said Powell.
WATCH RELATED: Realtor.com releases 2023 housing market predictions (Dec. 2022).
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