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.

February brought continued price growth to North County and San Diego real estate markets. Because of the coronavirus, the California Association of Realtors® is planning on revising this year’s forecast lower, but say the changes will be modest. The uncertainty the virus has brought to financial markets has also led to lower interest rates. Those low rates are spurring on home purchases and refinances.

North County and San Diego Real Estate Markets

Year-over prices were up 8.1 percent countywide and 5.0 percent in North County. Inventory dropped by over 40 percent compared to the previous year, and market times were shorter. We continue to see fewer new listings but more pending and closed sales.

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

North County and San Diego real estate markets saw solid price growth along with strong sales and tight inventory in January. Due to the market upturn in the last half of 2019, experts think that as long as interest rates and inventory stay low we’ll see a one to four percent growth in home prices this year. San Diego markets have fared well with prices here rising more than in other West Coast markets that usually show higher gains.

North County and San Diego Real Estate Markets

North County’s year-over median price increased 6.6 percent in January compared to the previous year. Countywide, the median price increased 7.9 percent. Pending and closed sales rose in both markets while new listings dropped by close to 20 percent.

If you’re looking to sell your home, this is a great time to take advantage of the low inventory and strong market. If you are planning on buying, lower interest rates are making it more affordable, but finding the right home will require patience and diligence.

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

December brought moderate price increases to both North County and San Diego real estate markets. This lines up with the Freddie Mac end of year forecast which predicts modest but slowing growth in the housing market in 2020 and 2021. That’s good news compared to previous predictions, but business leaders are still expecting an economic slowdown by the end of 2020 with 97% of CFOs saying a downturn has already begun or will by the end of this year.

For more information on where the real estate market is headed, see my 2020 Real Estate Market Forecast.

For the first time since June, North County and San Diego real estate markets both showed year-over increases. Along with higher prices, we saw more homes go under contract and fewer new listings come on the market.

Lower interest rates have helped bolster prices, , but experts are still predicting a slowing market. They cite high home prices compared to wages, low inventory and the difficulty in getting a mortgage as factors.

Continue reading November 2019 North County and San Diego Real Estate Markets →

North County and San Diego real estate gave us another month of mixed results. Prices dropped slightly in North County, but countywide they saw a slight, year-over gain. The strong economy, low interest rates and tight inventory are keeping pressure on the market, but our high prices are working against that. According to Forbes, home prices in the San Diego market are 19 percent higher than they should be based on incomes in our area.

Although some experts predict our market is at a higher risk of a downturn, others don’t put the San Diego market into their high-risk category should a recession hit. What does this mean for you as a home buyer or seller? It means there are still great opportunities for you. As a buyer, you should focus on long-term investments, and if you are selling, make sure your home is one of the best values for buyers in your specific market.

North County and San Diego real estate markets show a mixed bag of results this month. We should be seeing a robust market with unemployment and interest rates so low, but price increases are stalling out and sales continue to slow.

Experts cite several reasons for the slowing market, the 2017 tax changes that limit state and local deductions, trade wars, and fewer foreign buyers. Some think that home buyers are waiting for prices to drop. But San Diego County’s lack of available homes for sale may keep that from happening. Although we have been seeing inventory slowly creep upwards, it pulled back this month. If that continues, there will be fewer choices for home buyers.