San Diego Real Estate Market Update - June 2023
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Monthly Indicators
Existing-home sales slid for the second consecutive month, falling 3.4% nationwide as of last measure, according to the National Association of REALTORS® (NAR), as higher interest rates continue to impact buyer affordability. Sales are down 23% compared to the same period a year ago, while contract signings dropped 20.3% year-over-year. With sales cooling, buyers in some parts of the country have found relief in the form of declining sales prices, which are down 1.7% year-over-year nationally, although more affordable markets continue to see price gains.
Closed Sales decreased 27.9 percent for Detached homes and 27.8 percent for Attached homes. Pending Sales decreased 26.4 percent for Detached homes and 22.0 percent for Attached homes. Inventory decreased 23.4 percent for Detached homes and 16.9 percent for Attached homes.
The Median Sales Price was down 2.6 percent to $955,000 for Detached homes and 4.5 percent to $640,000 for Attached homes. Days on Market increased 52.6 percent for Detached homes and 43.8 percent for Attached homes. Supply increased 14.3 percent for Detached homes and 30.0 percent for Attached homes.
While fluctuating interest rates have pushed some buyers to the sidelines, a shortage of inventory is also to blame for lower-than-average home sales this time of year, as current homeowners, many of whom locked in mortgage rates several percentage points below today’s current rates, are delaying the decision to sell until market conditions improve. With only 2.9 months’ supply heading into May, available homes are moving fast, with the typical home spending just over three weeks on the market, according to NAR.
Housing Supply
New residential construction continues to pick up steam, as limited existing-home inventory drives buyer demand toward the new construction market. Monthly new- home sales exceeded economists’ expectations once again, rising 4.1% to a seasonally adjusted annual rate of 683,000 units, the highest reading since March 2022, according to the U.S. Census Bureau. Housing starts were up 2.2% month-over- month, reflecting gains in both single-family and multifamily construction, while permits for future single-family homes reached a 7-month high. For the 12-month period spanning June 2022 through May 2023, Pending Sales in the San Diego were down 34.9 percent overall. The price range with the smallest decline in sales was the $1,000,001 to $1,250,000 range, where they decreased 21.1 percent.
The overall Median Sales Price was up 2.8 percent to $807,000. The property type with the largest price gain was the Condos – Townhomes segment, where prices increased 5.1 percent to $620,000. The price range that tended to sell the quickest was the $1,000,001 to $1,250,000 range at 29 days; the price range that tended to sell the slowest was the $5,000,001 and Above range at 65 days.
Market-wide, inventory levels were down 21.4 percent. The property type with the smallest decline was the Condos – Townhomes segment, where they decreased 16.9 percent. That amounts to 1.6 months supply for Single-Family homes and 1.3 months supply for Condos.
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