SAN DIEGO — Homes that would typically fly off the market aren't anymore and this appears to be a new trend for San Diego.
"When inventory is low prices remain up but right now we’re seeing a vast increase in the interest rate that many people are bumped out of the market, they just can’t afford the houses," said Frank Powell.
San Diego Realtors Association President-elect Frank Powell said he has been trying to sell a home in Bay Park for two months. The home is in a prime location with an amazing view and not too long ago this home would be gone within five days.
"More people are trying to get in the market but still can’t afford it, and eventually the houses will go down because the interest rates are increasing," said Powell.
Although San Diego continues to be a destination for many people, even open houses are slowing down.
Realtor Kyla Pince hosted an open house in Del Cerro, and she’d typically see 20 to 30 people come through, but on Friday she saw fewer than 10 potential home buyers.
"With fathers day coming up this weekend we haven’t been that busy just a handful of groups coming in," said Pince.
In North County, Connie Holtzman bought a home in Oceanside within 24 hours. One of the factors she considered when purchasing the home was the Federal Reserve's interest rate increase.
"I was concerned interest rates were gonna go higher, I wanted to buy a house now, I figure at some point the interest rate will go down and I can refinance a home purchase is a long term purchase," said Holtzman.
Holtzman beat out about three people by going $30,000 above market value and while you may not have that kind of cash at hand, Powell said planning will make a world of difference when it’s time to buy a home.
"They may not be ready now but you may be able to afford it in five years," said Powell.
Powell said he doesn’t expect a significant drop in prices since inventory is still low and many people are still coming to San Diego from out of state.
WATCH RELATED: San Diego home sellers struggle amid interest rate hike (June 2022).