San Diego Real Estate Market Update – February 2021
Full Reports
Monthly Indicators
January started off strong for the housing market, with healthy buyer demand and strong market fundamentals. A robust increase in housing starts in December points to an active year for new construction, but higher material costs, especially lumber, and a limited supply of buildable lots will temper the number of new units.
Closed Sales increased 1.2 percent for Detached homes and 11.1 percent for Attached homes. Pending Sales increased 5.4 percent for Detached homes and 18.0 percent for Attached homes. Inventory decreased 61.1 percent for Detached homes and 48.7 percent for Attached homes.
The Median Sales Price was up 11.9 percent to $744,000 for Detached homes and 11.5 percent to $485,000 for Attached homes. Days on Market decreased 40.9 percent for Detached homes and 23.1 percent for Attached homes. Supply decreased 63.2 percent for Detached homes and 52.6 percent for Attached homes.
The Mortgage Bankers Association’s January research estimates approximately 2.7 million homeowners with mortgages are currently in forbearance plans. Some of these homes may eventually come to market, but given the strong appreciation in most market segments in recent years, these eventual home sales are likely to be mostly traditional sellers. However, a modest increase in short sales and foreclosures at some point this year would not be surprising.
Housing Supply Overview
The new year has begun, and with it comes many people who have made buying or selling a home part of their 2021 resolutions. While ongoing unemployment claims remain elevated due to COVID-19, they are substantially lower than what they were during their peak and have had little effect on buyer demand thus far. For the 12-month period spanning February 2020 through January 2021, Pending Sales in the San Diego were up 5.0 percent overall. The price range with the largest gain in sales was the $5,000,001 and Above range, where they increased 52.6 percent.
The overall Median Sales Price was up 9.5 percent to $635,000. The property type with the largest price gain was the Single-Family Homes segment, where prices increased 10.8 percent to $720,000. The price range that tended to sell the quickest was the $500,001 to $750,000 range at 23 days; the price range that tended to sell the slowest was the $5,000,001 and Above range at 98 days.
Market-wide, inventory levels were down 56.9 percent. The property type with the smallest decline was the Condos – Townhomes segment, where they decreased 48.7 percent. That amounts to 0.7 months supply for Single-Family homes and 0.9 months supply for Condos.
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