The San Diego housing market has surged back over the last month. Buyers, driven by historic low interest rates just above 3%, have returned, driving demand back up to pre-lockdown levels.
Although San Diego never really went into a stagnant or depreciating market at the height of the lockdown, we are now the hottest market in Southern California. We are seeing stiff competition and short market times for all homes under $1.5M, with the under $750K pricepoint continuing to be the most competitive for buyers.
Housing inventory remains around 5000 homes county-wide, down about -35% to last year. (as a comparison, during the recession in 2008, we had 20,000 homes for sale). After +9% price increases in the first quarter, April/May saw modest 2-4% price increases. Based on how quickly demand has bounced back, we expect the balance of the year to continue to show appreciation in the mid-single digits.
If you're a buyer, the lower interest rates are offsetting the price increases, so your affordability is actually improving.
If you're a homeowner thinking of selling, this is the time to get your home on the market while conditions remain favorable.
To see how your individual area is performing, click on the map below