San Diego Real Estate Market Update – July 2021
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Monthly Indicators
School’s out, and as vaccination rates rise and America enters a new normal, the U.S. housing market continues along at a frenzied pace, with low interest rates and limited inventory fueling record high sales prices. May saw the median existing-home sales price exceed $350,000, a 24% increase and the largest year-over-year increase since 1999, according to the National Association of REALTORS®. Eager buyers are making multiple offers, some for well over asking price, while others are making offers on homes sight unseen.
Closed Sales increased 20.6 percent for Detached homes and 24.9 percent for Attached homes. Pending Sales increased 1.8 percent for Detached homes and 17.3 percent for Attached homes. Inventory decreased 48.1 percent for Detached homes and 51.8 percent for Attached homes.
The Median Sales Price was up 29.3 percent to $879,000 for Detached homes and 22.2 percent to $553,500 for Attached homes. Days on Market decreased 43.3 percent for Detached homes and 43.8 percent for Attached homes. Supply decreased 55.0 percent for Detached homes and 63.6 percent for Attached homes.
The increase in sales prices comes with a slight decline in existing home sales nationwide, as homebuyers struggle with declining affordability amid a lack of inventory, forcing some buyers to simply wait it out in hopes of more inventory and less competition. Meanwhile, home builders are trying to meet the increased market demand, with housing starts up 3.6% in May from April, according to the Commerce Department. As we ease into new routines and look forward to a post-pandemic future, one thing remains certain: America desperately needs more homes.
Housing Supply Overview
Summer’s here, and with vaccination rates on the rise, buyers continue to flood the market in search of their next home, with rock bottom inventory and record high sales prices reported throughout much of the country. Although closed sales were down nationally, overall demand for housing remains high, in part due to attractively low interest rates, offering buyers some relief and affordability in a fiercely competitive market. For the 12-month period spanning July 2020 through June 2021, Pending Sales in the San Diego were up 23.0 percent overall. The price range with the largest gain in sales was the $5,000,001 and Above range, where they increased 140.2 percent.
The overall Median Sales Price was up 16.1 percent to $685,000. The property type with the largest price gain was the Single-Family Homes segment, where prices increased 18.2 percent to $780,000. The price range that tended to sell the quickest was the $500,001 to $750,000 range at 20 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 49.4 percent. The property type with the smallest decline was the Single-Family Homes segment, where they decreased 48.1 percent. That amounts to 0.9 months supply for Single-Family homes and 0.8 months supply for Condos.
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