The San Diego housing market, like many other markets in the United States, has been contracting following the growth years that came after the Covid pandemic. Airdeed Homes recently analyzed the San Diego housing market and produced a report that sheds light on current trends in home prices, home sales activity, and inventory levels. In this article, we will examine the report and provide valuable insights for potential buyers, sellers, and investors in the San Diego real estate market.
San Diego County Home Price Trends
According to Federal Reserve Economic Data research, the San Diego real estate market has seen a drop in home values since peaking in June 2022. The median price for new home listings reached $948,250 during this time. However, in July, the median price began to decrease slightly and continued to do so in subsequent months, with a median home price of $899,900 in July. The median home price hit a low of $884,000 in November of 2022 but rebounded slightly in December. This suggests a downward trend in the San Diego real estate market over the past few months, although it may have started to level off in early 2023.
Despite the recent dip in home prices, many San Diego residents have built up significant home equity with the surge in housing prices over the last two years. Single-family homes have seen some of the biggest gains in home prices, and if market prices shift, there is still plenty of equity from the last two years to avoid sweeping foreclosures or bankruptcies.
Local Real Estate Housing Market Trends
The number of housing listings in the San Diego real estate market has undergone significant changes over the past few months. According to St Louis Fed data, the number of property listings peaked in October of 2018 at 7,880. However, that number has fallen significantly, with active real estate listings dropping to 2,215 in February 2021. In July 2021, the number of home listings increased to 3,151, but it decreased again in January 2022 to 1,484. It then rose in August of 2022 before decreasing again in December to 3,220. This suggests that the San Diego real estate market has been relatively volatile over the past few months and years, with the number of active property listings fluctuating up and down.
San Diego Mortgage Rates
Mortgage rates in San Diego have remained relatively low over the past few years, making it an attractive market for buyers. As of March 2023, the average mortgage rate for a 30-year fixed mortgage in San Diego is 3.5%. However, experts predict that mortgage rates may begin to rise in the coming months, which could impact the affordability of homes in the San Diego market.
San Diego Property Investing
Despite the recent contraction in the San Diego real estate market, there are still opportunities for property investing in the area. With the recent dip in home prices, there may be opportunities for investors to purchase properties at a lower price point and then sell them later for a profit. Additionally, with low mortgage rates, investing in rental properties could be a viable option for those looking for long-term investments.
The San Diego real estate market has experienced a contraction in recent months, with a drop in home values and a fluctuation in the number of active property listings. However, the market still offers opportunities for potential buyers, sellers, and investors, with the recent dip in home prices potentially presenting opportunities for property investing. As the market continues to evolve, staying informed about current trends and market conditions will be critical for making informed decisions about buying, selling, or investing in San Diego real estate.