Five facts no one is telling you about the San Diego Real Estate market, by Denise Matthis.

By Denise Matthis

Five facts no one is telling you about the San Diego Real Estate market

The San Diego housing market was quick to heat up when the year began, but as we get into the middle of the year, housing experts feel that the market has begun cooling off. The economy is recovering well, and as a result, home sales are predicted to decline by real estate experts. This change may be because there is more certainty now than there was last year, and more people are willing to list their homes. The employment rate, the GDP per capita, and average income have also increased. The new developments bear good news for homebuyers. They will be able to find homes easily without much bidding. Home affordability with mortgage rates still low is still achievable. And as so, it is still a great time to enter the housing market. But first, let’s take a deeper look into the San Diego Housing market.

1. BUILDING CONSTRUCTION IS UP

Building permits were up 27% in the first quarter of 2021. Building permits for multifamily and condos had the highest increase of 39% and 8% for single-family homes.

Additionally, the construction industry hit a very productive margin, in the first quarter with nearly 3000 new home construction. The construction of multi-family, townhouses, and single-family homes went up by 22% in the first quarter of 2021 from last year’s quarter.

It is projected that more than ten new masterplanned communities will be built in North

If the number keeps trending up, it is expected that San Diego will reach pre-pandemic totals. However, despite this increase, the number of new constructions is nowhere near what the market demands.

2. INVENTORY IS INCREASING

For months this year, home supply was limited.

Perhaps because of the pandemic. But as the vaccine continues to be rolled out, inventory has gone up. July’s market action index has dropped from June and is at 97. The drop in the market action index may be attributed to the increased number of listed properties.

Unfortunately, the number of homes entering the market is still inadequate to meet the current demand.

3. MEDIAN LIST PRICES HAVE PLATEAUED.

The median list price in San Diego has plateaued at $979,450. This plateau, to some, may mean that the housing market is weakening. But in reality, there’s always a plateau from June through to August.

4. A BALANCED MARKET.

The housing market in June was described by Zillow as “neutral.” And in fact, Redfin.com gives the market a score of 50 out of 100.

Homes, therefore listed on the San Diego housing market, are selling for nearly the amount listed.

Additionally, an equilibrium between sales and inventory has been achieved. The competitiveness of the San Diego market might, therefore, be dropping.

5. PRICE INCREASE.

It is unlikely that home prices will decrease in San Diego. Millennials and first-time homebuyers will continue to flood the market as they take advantage of low-interest rates.

They will continue driving the housing market.

The tight inventory will further contribute to home prices going up. Experts predict that come 2022, the home prices will have gone up another 10%.

The housing market in San Diego might be warming up, but it does not signify that the market will crash. Home affordability is still there, and the market is yet to exhaust the demand. It would be a good idea, therefore, to take advantage of the current rates and the new listings coming onto the market.

Sources:

https://www.sandiegorealestatehunter.com/blog/san-diego-real-estate-marketforecast/ https://www.redfin.com/city/16904/CA/San-Diego/housing-market https://www.sandiegorealestatehunter.com/blog/san-diego-real-estate-marketstatistics/