San Diego Real Estate Market Update – April 2021
Full Reports
Monthly Indicators
Normal spring increases in sales activity, coupled with relaxing COVID-19 policies, created a very busy March real estate market as buyer demand continued largely unabated in the face of rising home prices and mortgage rates. Existing home seller and new construction activity continue to remain below levels necessary to bring the market back into balance, pointing to a busy and competitive buyer market in the coming months.
Closed Sales increased 5.8 percent for Detached homes and 22.5 percent for Attached homes. Pending Sales increased 41.2 percent for Detached homes and 77.1 percent for Attached homes. Inventory decreased 65.5 percent for Detached homes and 61.6 percent for Attached homes.
The Median Sales Price was up 20.7 percent to $810,000 for Detached homes and 14.4 percent to $515,000 for Attached homes. Days on Market decreased 30.0 percent for Detached homes and 11.1 percent for Attached homes. Supply decreased 66.7 percent for Detached homes and 68.2 percent for Attached homes.
While many homebuilders are working to increase their activity, the cost of lumber and other materials and a backlogged supply chain continue to limit new home construction and have increased costs substantially. New methods of construction, including 3d printed homes, could speed construction and reduce costs in the future, but realistically are several years away from making a measurable impact in the market.
Housing Supply Overview
March sales activity picked up where February left off, with an already red-hot market showing no signs of slowing. Rising home prices and mortgage rates are affecting affordability, but have yet to impact demand, as sales continue to increase. Extremely constrained supply in many market segments will continue to fuel multiple offers and rising home prices. For the 12-month period spanning April 2020 through March 2021, Pending Sales in the San Diego were up 10.7 percent overall. The price range with the largest gain in sales was the $5,000,001 and Above range, where they increased 78.3 percent.
The overall Median Sales Price was up 11.1 percent to $650,000. The property type with the largest price gain was the Single-Family Homes segment, where prices increased 12.0 percent to $735,000. The price range that tended to sell the quickest was the $500,001 to $750,000 range at 22 days; the price range that tended to sell the slowest was the $5,000,001 and Above range at 97 days.
Market-wide, inventory levels were down 64.2 percent. The property type with the smallest decline was the Condos – Townhomes segment, where they decreased 61.7 percent. That amounts to 0.7 months supply for Single-Family homes and 0.7 months supply for Condos.
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