While quite busy in October, the North County and San Diego real estate markets did see some slowdown in November. But because new listings dropped more than pending listings and sales, inventory levels plummeted. They’re lower now than I can ever remember seeing. This severely limited inventory paired with historically low interest rates has created an incredibly competitive market for home buyers. Due to these factors, we continued to see strong year-over price gains.

The California Association of Realtors 2021 Housing Market Forecast projects that this inventory shortage will continue, but price increases will be more moderate. They expect interest rates to stay just above three percent, and home sales to increase slightly in 2021.

North County and San Diego Real Estate December 2020

Year-over, median prices were up 10.7 percent countywide and 11.6 percent in North County. Inventory dropped by about 50 percent compared to the previous year, and market times were very short. New listings, pending sales and closed sales dropped countywide. The same was true in North County, but closed sales saw a 10.5 percent gain.

See below for this month’s statistics and daily interest rate updates.

The October North County and San Diego real estate markets both saw 15 percent, year-over price increases. Paired with strong price growth were steep decreases in available inventory and days on market compared to the previous year.

Historically low interest rates paired with very little inventory and pent-up demand are forcing prices up quickly. If we see more inventory coming on the market or an increase in interest rates, those price increases should slow down.

The California Association of Realtors 2021 Housing Market Forecast projects that interest rates will stay just above three percent next year. But inventory may start to increase with the recent passing of Proposition 19.

Proposition 19 will allow homeowners who are over 55, severely disabled or those whose homes were destroyed by wildfire or disaster to transfer the tax base value of their primary residence to a replacement residence of any value, anywhere in the state. This may help motivate some homeowners to make a move.

North County and San Diego Real Estate October 2020

Both North County and San Diego County as a whole saw strong, year-over, median price gains of over 15 percent. Inventory dropped compared to last year by approximately 48 percent. Year-over market times were significantly shorter. North County saw increases in new listings, pending sales and closed sales while San Diego County as a whole had more pending sales but fewer new listings and closed sales.

See below for this month’s statistics and daily interest rate updates.

As the economy opens up, we are seeing the June North County and San Diego real estate markets do the same. Pending sales and new listings are moving back up, although inventory is still very low.

This lack of inventory, low interest rates and high demand from millennials is keeping our market stable. And with the Fed’s recent announcement that they will continue to buy mortgage-backed securities, experts predict that mortgage rates will continue to remain low.

North County and San Diego Real Estate June 2020

Year-over prices were up 2.2 percent countywide and 0.5 percent in North County. Inventory was still down 36 to 37 percent compared to last May, and market times were shorter. There were 26 percent fewer new listings. Pending sales were 6 to 8 percent lower than last year, but that’s a big improvement over April’s 40 percent drop, and an indicator that buyers are coming back to the market more quickly than sellers.

See below for this month’s statistics and daily interest rate updates.

We have seen a significant drop in the number of homes selling in the North County and San Diego real estate markets due to COVID-19, but in April as in March, there was also a large decrease in active and new listings. In addition, the number of homes that are going under contract (pending) has increased quite a bit since the beginning of April as you can see in the chart below.

This is keeping the real estate market very competitive, especially with entry-level homes. Many homes are seeing multiple offers. They are selling more quickly and at a higher sales price to list price ratio than they were at the same time last year.

Does this mean that our real estate market will see no effect from COVID-19? Not necessarily. The Mortgage Bankers Association reports that as of May 10, 2020, slightly over 8 percent of loans nationwide were in forbearance. The San Diego and North County markets could be adversely affected by this, but most likely we won’t know what those effects are until 2021. And because there are so few homes available to purchase, the consequences may be minimal.

North County and San Diego Real Estate Markets

Year-over prices were up 4.3 percent countywide and 6.3 percent in North County. Inventory dropped by about one-third compared to the previous year, and market times were 31 percent shorter. New listings and pending sales all dropped by over 40 percent in both markets.

See below for this month’s statistics and daily interest rate updates.