Last year we couldn’t find toilet paper to buy. This year we can’t find homes. In December, the North County and San Diego real estate markets had the fewest homes for sale we’ve seen since December 2001. To make things worse, the situation didn’t improve in January or February. This incredibly tight inventory combined with historically low interest rates and a lot of pent-up demand has created a red-hot market.
Our hot market is pushing home prices up very quickly. North County saw year-over prices increase by 19 percent and the county as a whole saw a 15.1 percent jump. This rapid appreciation is not sustainable.
Does this mean we are going to crash? I don’t think so. Market conditions are very different than they were in 2008. Take a look at my most recent post to find out why.
I do think as people get vaccinated and the economy starts to recover, we will see more people putting their homes on the market. Interest rates are also predicted to rise somewhat in 2021. This will force some buyers out of the market and put a slight damper on home appreciation. Even with these changes, the California Association of Realtors is still forecasting 8 percent appreciation for California homes in 2021.
North County and San Diego Real Estate March 2021
Along with rapid price increases, inventory in both the North County and San Diego real estate markets dropped significantly compared to the previous year. New listings were down, days on market saw large declines and homes sold over asking price. If you’re thinking of selling, you couldn’t find a better time. If you’re looking to buy, I wouldn’t expect prices or interest rates to move in your favor any time soon.
See below for this month’s statistics and daily interest rate updates.
Interest Rates
Market Updates
Click on the links below to read the full housing statistics reports.
- NORTH COUNTY MONTHLY INDICATORS
- METRO SAN DIEGO COUNTY MARKET UPDATE
- EAST SAN DIEGO COUNTY MARKET UPDATE
- SOUTH SAN DIEGO COUNTY MARKET UPDATE
- SAN DIEGO COUNTY MONTHLY INDICATORS
- 2020 NORTH COUNTY MARKET REPORT
North County Real Estate Summary
- The median price for all North County home sales increased 19.0 percent in February 2021 compared to February 2020.
- Detached homes saw a median price increase of 20.2 percent in North County, moving from $705,000 in February 2020 to $847,500 in February 2021.
- The number of sold units in North San Diego County decreased 2.5 percent compared to the previous February. Pending sales decreased 0.2 percent in the same period.
- Median days on market for North San Diego County properties was 20. This is a 52.4 percent decrease from the previous February.
- Inventory supply in North San Diego County dropped from 2.5 months in February 2020 to 0.8 months.
San Diego County Real Estate Summary
- The median price for all San Diego County home sales in February 2021 was $685,000. This is a 15.1 percent increase compared to February 2020.
- Detached homes saw a median price increase of 15.2 percent in San Diego County, moving from $674,900 in February 2020 to $777,777 in February 2021.
- Attached homes in San Diego County had an 14.7 percent median price increase compared to the previous year. They moved up to $512,500 in February 2021.
- Inventory supply countywide in February 2021 decreased from 1.9 months a year earlier to 0.8 months.