San Diego Market Update

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July 8, 2020
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We’ve passed the midway point of a very unusual year, and many of our clients, friends, and family have been asking us ‘what the heck is going on with real estate?’ The national news reports on the real estate market, but what we San Diegans see around us doesn’t really match the national picture. We know that’s confusing, so we’re going to give you a mid-2020 Market Update for San Diego and its micro markets.

Yes, home showings in North America (including San Diego) experienced a deep dip in March and April caused by COVID-19 but were back to pre-COVID levels by early May. They’ve been rising ever since. The Housing Market Recovery Index is almost back to its February 1st level.

Aside from showings, though, San Diego’s stats have been quite different from the national averages:

  • Inventory of Homes for Sale: down 30%-50% in June over last year
  • New Listings: down 10%-20% in June over last year
  • Pending Sales: up 20%-25% over last year (properties are going fast)
  • Closed Sales: down over last year, a direct result of lower inventory
  • Median and Average Sales Price: countywide, prices are up over last year

Here’s the macro view of San Diego:

  • There are a lot of motivated buyers, but there’s not a lot of inventory available.
  • High buyer demand + low supply + low mortgage rates mean sellers receive multiple offers, very quickly, and prices are driven up.
  • It’s a phenomenal time to sell, especially in the more affordable markets. County-wide, it’s a seller’s market.
  • However, some luxury markets like Rancho Santa Fe (above $2 million price point) have nine or more months of inventory, which makes those markets buyer’s markets.
  • Working with an agent and a team who understands the nuances of each micro-market is crucial.

We know how to navigate these micro-markets, and we welcome your referrals:

  • Everyone you know who has considered selling and hasn’t done it yet
  • Friends frustrated with working with Buyer’s agents and not getting results
  • People that own investment properties who want to generate better returns

COVID-19 has put many people’s real estate plans on hold, while it’s revealed an opportunity to just as many others. If you have any questions about this San Diego market update, and what it means for you, please don’t hesitate to call me at 619-977-4650.

 

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