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.
Buy 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."
