If it seems like the San Diego market is choking on high prices and reduced inventory, you’re correct. But San Diego isn’t the only market being impacted.
“Never in history have there been more eyes on fewer homes than today.”
That startling statement comes from Javier Vivas, Director of Research for Realtor.com. And he isn’t referring to the traditionally hot markets. Nationwide, there were 1.29 million listings in March which is 8% fewer than last March.
When demand is high, fewer listings = higher prices. Pretty understandable equation, but what is stunning is that Vivas projects that “…1 in 12 listings nationally will be listed over $1,000,000 this summer…” That to me is shocking, considering that nearly half of buyers on a nationwide basis are looking to pay under $200,000. Where does that leave them?
In San Diego no buyer is expecting to pay less than $200,000 for even the smallest condo and across the housing spectrum we are seeing our own runaway prices.
Here are the latest San Diego home prices for March:
Detached Homes (rounded to the nearest $1000)
Average $829,000 – up 17% from last year and 6.5% from last month
Median* $635,000 – up 10.4% from last year and 4.0% from last month
These price increases are driven in part by scarcity. In March 2017 there were 2139 sales, while in March of this year, just 1760. That is a decrease of 17.7%.
Attached Homes (rounded to the nearest $1000)
Average $412,000 – up 4.78% from last year and -3.38% from last month
Median $477,000 – up 5.7% from last year and -2.98% from last month
Although price increases year-over-year for condos hasn’t been as crazy as single family homes, the number of sales is still down by 14.49% in 2018, compared to March 2017.
So what does this mean for you in San Diego?
If you’re a homeowner with no plans to sell, congratulations! Your home is likely making you money. If you have plans for a remodel or special vacation, or just want to pay-off some bills, now might be a good time to consider an equity line of credit.
If you’re planning to sell, please do! We have buyers and it is likely that your home will sell at top dollar, even without a lot of primping.
If you’re trying to buy, put on your boxing gloves and be ready for competition! Be prepared to pay over asking price and consider other concessions that will sweeten your offer, such as reduced inspection or escrow periods.
Questions about buying or selling? Please don’t hesitate to give me a call for a no-obligation chat about your situation.
*The median price is where half of the homes sold for more and half for less. It is more meaningful than average price which can be skewed by a handful of very high or very low prices.
Photo courtesy of Berkshire Hathaway Home Services