Post-pandemic buyers in San Diego are most likely to take a loss on their home
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About 2.7% of San Diego County home listings were at risk of selling at a loss in May, Redfin estimates.
The big picture: There are a lot more sellers than buyers in the U.S. real estate market, Redfin said.
- A small but growing share of sellers nationwide could sell their homes for less than they paid for them.
By the numbers: Nearly 6% of U.S. homes for sale risked selling at a loss in May, up from around 4% a year earlier, though still historically low, per Redfin.
The intrigue: If U.S. home prices fall by 1% — as Redfin has predicted will happen by the end of 2025 — the overall share of homes at risk of selling at a loss will rise to 6.4%.
- In San Diego, a 1% price decline would mean 3.1% of homes were at risk of selling for a loss.
Between the lines: Homes purchased post-pandemic (after July 2022), as prices soared to new highs, are more likely to sell at a loss than those bought during or before the pandemic.
Zoom in: In San Diego, about 1% of single-family homes and 4.9% of condos for sale are at risk of selling at a loss, per the report.
- 9.7% of homes bought after the pandemic and 5.1% of homes bought during the pandemic are at risk of selling for a loss.
- Just 0.2% of homes bought before the pandemic face the same risk.
Reality check: There's a difference between taking a loss and being "underwater," or owing more money to your lender than the house is worth.
- Nearly all sellers have enough equity in their homes to sell them for more than they owe, per Redfin.