San Diego Real Estate Market Update – August 2021
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Monthly Indicators
The White House recently announced additional measures to help struggling homeowners avoid foreclosure as they exit forbearance, including loan modifications and payment reductions. Borrowers with federally backed mortgages can lock in lower interest rates and extend the length of their mortgages. For borrowers who can’t resume their monthly mortgage, HUD will offer lenders the ability to provide all eligible borrowers with a 25% principal and interest reduction.
Closed Sales decreased 7.8 percent for Detached homes but increased 1.8 percent for Attached homes. Pending Sales decreased 12.2 percent for Detached homes and 0.7 percent for Attached homes. Inventory decreased 37.7 percent for Detached homes and 48.8 percent for Attached homes.
The Median Sales Price was up 20.7 percent to $875,000 for Detached homes and 18.0 percent to $550,000 for Attached homes. Days on Market decreased 43.8 percent for Detached homes and 40.0 percent for Attached homes. Supply decreased 47.4 percent for Detached homes and 59.1 percent for Attached homes.
The National Association of REALTORS® reported inventory of homes for sale nationwide rose slightly in June as more sellers list their homes, hoping to take advantage of record-high sales prices across the country. Even with renewed home seller interest, inventory overall remains 18.8% lower than a year ago, according to NAR. Meanwhile, the foreclosure moratorium on federally backed mortgages, initiated at the beginning of the COVID-19 pandemic, expired on July 31. At present, about 1.75 million Americans remain in forbearance, which has decreased more than 50% from its peak during the pandemic.
Housing Supply Overview
After months of declines, the inventory of homes for sale nationwide is beginning to increase as more sellers come to the market, looking to capitalize on record-high sales prices while providing a much-need boost of supply to America’s epic housing shortage. This is encouraging news for home buyers, who have struggled with a lack of supply and rocketing sales prices during the pandemic. For the 12-month period spanning August 2020 through July 2021, Pending Sales in the San Diego were up 19.9 percent overall. The price range with the largest gain in sales was the $5,000,001 and Above range, where they increased 136.7 percent.
The overall Median Sales Price was up 16.4 percent to $697,000. The property type with the largest price gain was the Single-Family Homes segment, where prices increased 18.8 percent to $796,250. The price range that tended to sell the quickest was the $500,001 to $750,000 range at 19 days; the price range that tended to sell the slowest was the $5,000,001 and Above range at 90 days.
Market-wide, inventory levels were down 41.9 percent. The property type with the smallest decline was the Single-Family Homes segment, where they decreased 37.7 percent. That amounts to 1.0 months supply for Single-Family homes and 0.9 months supply for Condos.
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