San Diego Housing Market Now
A paucity of homes for sale continues to plague the greater San Diego County market. Inventory of single family houses fell 44% year over year, while inventory of attached homes dropped by 64.8%. Year over year, home prices at all price ranges are up 18 to 26%. Price rises are higher the greater the home sales price.
Last week however, SDMLS reports sales grew 98% from the previous and new listings grew 49%. Is something going on in the market? Despite that trend, housing affordability among lower income Californian’s is in crisis.
Although the percentage of home buyers who can afford to purchase a median-priced, existing single-family home in California in the 3rd 2021 1% to 24% in the 2nd quarter of 2021. That is down 28% from the third quarter of 2020 and half of what it was in 2012.
The SD economy is doing well and given how attractive So Cal is to buyers, wealthy buyers are bidding on homes in San Diego County. SD is the focus for very wealthy buyers, particularly those interested in the popular La Jolla area where dream homes are the norm.
Improving Economy Will Bolster Demand and Prices
So Cal has been spared the damage of floods, heat and forest fires which plagued more northerly parts of California. And new venture capital is pouring into San Diego indicating investors belief in the SD economy. However, the cost of materials and labor are presenting challenges to local companies to stay competitive. GDP across Southern California is expected to increase 4.2% in 2022.
Prices should rise briskly next spring even though Realtor’s forecast is for moderate gains in the housing markets.
The question for buyers is where to find available, affordable homes and for sellers, when to sell? For sellers, the issues is complicated by the quest to find another home. Sellers must then buy after selling, and there fewer homes for sale in December.
San Diego ABC News 10 shows the market won’t be better in 2022.
The situation is similar across the So Cal region. CARs most recent data from October shows only Los Angeles suffered big price drops, and sales were down in other counties too.
With the exception of Los Angeles, home prices in Southern California rose in October. Nearby Orange County saw its average price rise 1.8% to an average of $1,120,000 in October.
Southern California Housing Prices
Realtors who want to sell more homes must develop a system to help sellers quest to relocate whether temporarily in another state or another country, or an actual home in SD County. Stats shows sellers are holding onto their properties. With no where to go, it’s entirely understandable. In essence, the poor support for new construction combined with high prices and more buyers, creates a persistent ailing housing market.
Home Sales and Sold Prices in November
During November, closed sales for single family houses fell 12.3% and attached home sales dropped 11.6. Pending sales of detached homes decreased slightly by .3% while for attached homes, it plummeted by 6.5%.
Median single family home prices rose 14.7% over the last 12 months to $860,000. Prices for attached homes rose a whopping 25.1%. Suffice to say that the San Diego Housing market remains under considerable strain and puts sellers in a position to command their desired price.
SDAR reports on activity across different coverage regions. As you can see, there are listings and most get sold quickly.
Housing stats for San Diego in the last 30 days:
- Metro: total home listings 207; solds 234; new listings 69
- Metro Central: total home listings 197; solds 197; new listings 69
- Metro Uptown total listings 289; solds 291; new listings 103
- North County total listings 531; solds 585; new listings 194
- North County Inland listings 288; solds 361; new listings 101
- Inland South listings 20; solds 18; new listings 11
- South Bay listings 369; solds 400; new listings 126
- Coastal North listings 641; solds 731; new listings 248
- Coastal South listings 162; solds 154; new listings 78
- East County listings 497; solds 509; new listings 168
- Inland East County listings 40; solds 30; new listings 19
Affordability in San Diego County
The continuous rise of prices is pushing properties beyond all but the most wealthy buyers. A good portion of the potential market has given up. Given insufficient new home construction is happening, prices can only rise further as the economy continues to improve.
Home Prices La Jolla
La Jolla remains the jewel of the region with average prices rising 47% year over year to an astonishing new average of $3,685,000 for a single family home. Inventory has shrunk quickly to only 2 months of supply, down 52% from last year. Listings have dropped 50% since last November.
Home Prices Mission Beach and Pacific Beach
The allure of the beaches to many buyers means prices will rise in Mission Beach and Pacific Beach (+28.8%) DOM is down dramatically (-30%) and sellers are getting 99.5% of asking price on average.
Home Prices Oceanside
Oceanside properties have seen marked growth in price, up 40% from 12 months ago. Demand is obviously strong in the Coastal Carlsbad and Oceanside neighborhoods. Sellers are receiving more than they ask at 103% and homes sell 4 days faster. Home prices rose 30% year over year in neighboring Carlsbad.
See more on US housing market forecasts for cities including Los Angeles, San Francisco, Sacramento, San Diego, Anaheim, Riverside, and the Bay Area. Realtors, looking to grow your visibility, draw leads and grow sales? Check out marketing services for Realtors.
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