San Diego Real Estate Market Update – June 2021
Full Reports
Monthly Indicators
As the weather warms and pandemic restrictions ease across much of the country, the U.S. housing market shows little sign of cooling. Robust buyer demand, fueled by low mortgage rates, continues to outpace supply, which remains near historic lows. Nationwide, inventory remains much lower than it was at this time last year, and sales prices are surging as a result.
Closed Sales increased 64.5 percent for Detached homes and 85.1 percent for Attached homes. Pending Sales increased 22.9 percent for Detached homes and 25.7 percent for Attached homes. Inventory decreased 55.6 percent for Detached homes and 53.0 percent for Attached homes.
The Median Sales Price was up 31.1 percent to $865,000 for Detached homes and 24.1 percent to $540,000 for Attached homes. Days on Market decreased 31.0 percent for Detached homes and 30.8 percent for Attached homes. Supply decreased 63.6 percent for Detached homes and 62.5 percent for Attached homes.
With such limited supply of existing homes to purchase, all eyes are on home builders to provide a much-needed boost of inventory to the market to help meet buyer demand. However, increasing material and labor costs, along with supply chain challenges, have contributed to significantly higher construction costs, with builders passing these costs on to homebuyers. And while the warmer temperatures, rising sales prices, and the reopening of the economy may draw more sellers to the market, historically low levels of homes for sale are likely to continue for some time.
Housing Supply Overview
Robust buyer demand, fueled by low mortgage rates, continues to outpace supply, which remains near historic lows. Nationwide, inventory remains much lower than it was at the same time last year, and sales prices are surging as a result. While the warmer temperatures, rising sales prices, and the reopening of the economy may draw more sellers to the market, historically low levels of homes for sale are likely to continue for some time in most market segments. For the 12-month period spanning June 2020 through May 2021, Pending Sales in the San Diego were up 24.3 percent overall. The price range with the largest gain in sales was the $5,000,001 and Above range, where they increased 143.5 percent.
The overall Median Sales Price was up 13.6 percent to $670,000. The property type with the largest price gain was the Single-Family Homes segment, where prices increased 15.2 percent to $760,000. The price range that tended to sell the quickest was the $500,001 to $750,000 range at 21 days; the price range that tended to sell the slowest was the $5,000,001 and Above range at 102 days.
Market-wide, inventory levels were down 54.7 percent. The property type with the smallest decline was the Condos – Townhomes segment, where they decreased 53.0 percent. That amounts to 0.8 months supply for Single-Family homes and 0.9 months supply for Condos.
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