San Diego Real Estate Market Update - May 2023
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Monthly Indicators
U.S. existing-home sales declined 2.4 percent month-over-month as of last measure, according to the National Association of REALTORS® (NAR), reversing February’s sales gain of 14.5%. Fluctuations in mortgage interest rates have caused buyers to pullback, with pending sales dropping 5.2% month-over-month. Meanwhile, the median existing-home sales price declined for the second month in a row, falling 0.9% nationally from the same time last year, the largest year-over-year decline since January 2012, according to NAR.
Closed Sales decreased 40.3 percent for Detached homes and 35.0 percent for Attached homes. Pending Sales decreased 28.8 percent for Detached homes and 29.1 percent for Attached homes. Inventory decreased 22.8 percent for Detached homes and 13.5 percent for Attached homes.
The Median Sales Price was down 4.7 percent to $952,600 for Detached homes and 3.0 percent to $640,000 for Attached homes. Days on Market increased 52.6 percent for Detached homes and 76.5 percent for Attached homes. Supply increased 18.2 percent for Detached homes and 37.5 percent for Attached homes.
Housing inventory remains tight nationwide, with only 980,000 units available for sale heading into April, a 5.4% increase from one year earlier, although the number of homes for sale is down compared to the same period in 2019, prior to the pandemic. The lack of existing inventory continues to impact home sales, and with only 2.6 months’ supply of homes at last measure, competition for available properties remains strong, especially in certain price categories, with multiple offers occurring on about a third of properties, according to NAR.
Housing Supply
A limited supply of existing homes for sale, along with an increase in new homes on the market, have helped boost demand for new single-family homes this year. Monthly new-home sales increased 9.6% as of last measure, marking the highest rate of new- home sales in a year, according to the U.S. Census Bureau. Single-family housing starts increased for the second consecutive month, rising 2.7% to a seasonally adjusted 861,000 units as of last measure, while single-family housing completions were up 2.4% month-over-month. For the 12-month period spanning May 2022 through April 2023, Pending Sales in the San Diego were down 34.7 percent overall. The price range with the smallest decline in sales was the $1,000,001 to $1,250,000 range, where they decreased 19.2 percent.
The overall Median Sales Price was up 4.6 percent to $813,000. The property type with the largest price gain was the Condos – Townhomes segment, where prices increased 7.6 percent to $624,250. The price range that tended to sell the quickest was the $1,000,001 to $1,250,000 range at 28 days; the price range that tended to sell the slowest was the $5,000,001 and Above range at 61 days.
Market-wide, inventory levels were down 20.1 percent. The property type with the smallest decline was the Condos – Townhomes segment, where they decreased 13.5 percent. That amounts to 1.3 months supply for Single-Family homes and 1.1 months supply for Condos.
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