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August 2020 San Diego Housing Market Update

The housing and stock markets continue to be the leaders in the economy. In August, showings and pending sales remained at strong levels while housing inventory remained limited, continuing the competitive bidding market we have seen in recent months. With the stock indexes at or near record highs as mortgage rates remain near record lows, signs point to a busy fall housing market.

Closed Sales increased 3.0 percent for Detached homes and 6.0 percent for Attached homes. Pending Sales increased 23.5 percent for Detached homes and 27.8 percent for Attached homes. Inventory decreased 52.0 percent for Detached homes and 30.2 percent for Attached homes.

The Median Sales Price was up 14.5 percent to $750,000 for Detached homes and 9.2 percent to $475,000 for Attached homes. Days on Market decreased 27.3 percent for Detached homes and 19.4 percent for Attached homes. Supply decreased 50.0 percent for Detached homes and 34.6 percent for Attached homes.

As we look towards the fall, we normally see housing activity begin to slow a bit as the back-to-school season begins, but this year is far from normal. While uncertainty remains on what effects the upcoming elections and any seasonal resurgence of COVID-19 may have on the financial and housing markets, the healthy housing demand we see today will create significant tailwinds in the near term.

Download the report.

April 2020 San Diego Real Estate Market Update

Let's take a look at the last eight weeks of market data (during pandemic) in San Diego County, as compared to the first eight weeks (pre-pandemic) of 2020 in this Market Update.

  • Detached and Attached Homes Inventory: 
    • Pre-pandemic, there were 4100-4200 properties listed on average as 'Active' in the MLS
    • On April 21st, there were 4800 homes for sale
    • On April 28th, there were 4722 homes for sale
    • Normally at this time of year, 6000-7000 homes are listed for sale on average. This category is definitely seeing an impact from the pandemic, as some people are simply not putting their homes on the market that otherwise would have if there was no pandemic. However, there are still a healthy number of people that are feeling confident enough about listing, relative to the low inventory levels at the start of 2020.
  • Under Contract or Pending Escrow:
    • Pre-pandemic, an average of 750 homes went into escrow each week. 
    • Since March 3 and April 21, there was an average of 452 homes in escrow.
    • In the last 7 days, the total pending went up to 521 in escrow.
    • This is about 40% below what is normal for this time of year. However this is a positive indicator that people are still willing to transact.
  • Closed Sales / Sold Listings:
    • Pre-pandemic, San Diego County averaged 550-600 sales a week
    • Since March 3rd, there have been 420 closed sales per week on average.
    • Between April 21 and 28, there were 385 sales, which brings the pandemic average down slightly to about 400 sales per week.
    • This is still a very healthy number in the grand scheme of things considering there are only 4700 homes on the market.
  • Big Picture:
    • San Diego County is still very much a seller's market on the macro scale.
    • Interestingly, the data shows very little change in overall sales year over year when comparing this time of year to the same period last year (2019). The total sales between Jan. 1 and Apr. 22 in 2019 and in 2020 were nearly identical (8985 vs 9005).
    • However, 2020 started very strong so while the 2020 total is still high as of this week, the coming months will reveal more.
    • The moral of story is that there are definitely people in the market who are willing to sell and buy real estate at this time.

Remember, these are macro statistics. Real estate is very micro depending on where you live and the price point of your home. Each neighborhood and even price ranges within that neighborhood can behave very differently when compared to general market statistics like the ones I just shared. For instance, the luxury market is showing signs of softening because there is more inventory and not as much demand. Conversely, in the more affordable markets, demand is still reasonable and supply is low, so we have seen multiple offers and values holding or even increasing in some cases.

Looking for a home during Covid19, things to consider...

Hi all,

I read an interesting article I read from Realtor.com about how some agents are trying to cover up flaws in their listings in the photography. Here are some tips to help you see with your eyes wide open. Previewing homes to buy through video alone is a challenge, but it doesn't have to be as long as you know what to watch out for.

Learn how to read an online listing and find out what it's hiding

"My advice to buyers is to parse listing photos to determine whether something is a good enough candidate to consider a more in-depth tour," says Kate Ziegler, a real estate professional with Arborview Realty in Boston.

An agent will help you get into the nitty-gritty of an online listing. But here are some red flags to look for as you click through pictures that may not always show the true details of a property:

Read more: Looking for a home during Covid19, things to consider...

Can you buy a house without seeing it first? Of course you can!

AdobeStock 117907355Buy a home site unseen. Sounds crazy doesn't it. Well, you're not really buying a home sight unseen. You can go into escrow without seeing the home as long as the seller has accepted your offer, but you must do your due diligence seeing the condition of the home your buying of course.  For years, we have had some sellers not allow buyers to preview the home in person until there was an accepted offer. My boyfriend's offer on his duplex was sight unseen. With the limited inventory of homes we have in San Diego's real estate market and the heavy competition we have against investors with their cash offers, you need to have a saavy Realtor® or some tricks up your sleeve to get what you want. In the case of my boyfriend, there were mulitple offers on this duplex. He made sure he was pre-approved with his lender before he started looking knowing when something he liked came up on his radar, he'd want the ability to "jump on it."

Read more: Can you buy a house without seeing it first? Of course you can!

I'm a buyer, what should I keep in mind moving forward?

Whether you should stay in the market and continue to find a home to purchase depends. First off, it depends on your job security. It also depends on your finances

QUESTION: My boyfriend and I started looking at homes a couple of months ago with the hope of finding something to buy before the lease on our apartment runs out June 1. In the last couple of weeks, it seems like everything has turned upside down because of the coronavirus. Is this still a good time to buy (I’m thinking of low interest rates) or should we wait until this whole pandemic ends, hopefully soon?

ANSWER: Yes, the coronavirus pandemic has happened with lightning speed, upending life for millions of people. The stock market is in turmoil, hundreds of thousands of people have lost their jobs, possibly for many weeks to come. Businesses have been ordered shut down, people have been told to stay inside, venturing out only for necessities. And like everything else right now, the housing market has also been disrupted.

Read more: I'm a buyer, what should I keep in mind moving forward?

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This information is deemed reliable but not guaranteed. You should rely on this information only to decide whether or not to further investigate a particular property. BEFORE MAKING ANY OTHER DECISION, YOU SHOULD PERSONALLY INVESTIGATE THE FACTS (e.g. square footage and lot size) with the assistance of an appropriate professional. You may use this information only to identify properties you may be interested in investigating further. All uses except for personal, non-commercial use in accordance with the foregoing purpose are prohibited. Redistribution or copying of this information, any photographs or video tours is strictly prohibited. This information is derived from the Internet Data Exchange (IDX) service provided by San Diego MLS. Displayed property listings may be held by a brokerage firm other than the broker and/or agent responsible for this display. The information and any photographs and video tours and the compilation from which they are derived is protected by copyright. Compilation © San Diego MLS