The graph above shows how San Diego home buyers have been more patient since rates went up last summer.  They finally conceded some ground, pricewise, over the last couple of months to log a 8.8% increase in the median $/sf year-over-year, but it was flatlining for almost 12 months.

The graph below shows how the active inventory increased steadily since spring (blue line), and though it dropped 7% since last month, it is still 3% higher year-over-year.  In spite of my pleas over the last 2 days for sellers to stay on the market, it’s likely that the active inventory will decline sharply through the holidays (like last year):