San Diego Real Estate Market Update – March 2021
Full Reports
Monthly Indicators
Mortgage interest rates ticked a bit higher in February, but remain below their February 2020 levels. Interest rates may rise a bit further in coming weeks, but according to Freddie Mac chief economist Sam Khater, “while there are multiple temporary factors driving up rates, the underlying economic fundamentals point to rates remaining in the low 3 percent range for the year.” With rates still at historically low levels, home sales are unlikely to be significantly impacted, though higher rates do impact affordability.
Closed Sales increased 4.2 percent for Detached homes and 8.8 percent for Attached homes. Pending Sales increased 1.5 percent for Detached homes and 12.7 percent for Attached homes. Inventory decreased 60.0 percent for Detached homes and 52.1 percent for Attached homes.
The Median Sales Price was up 15.2 percent to $777,777 for Detached homes and 14.7 percent to $512,500 for Attached homes. Days on Market decreased 30.8 percent for Detached homes and 20.0 percent for Attached homes. Supply decreased 60.0 percent for Detached homes and 52.6 percent for Attached homes.
For homeowners currently struggling due to COVID-19, government agencies are continuing efforts to help those in need. The Federal Housing Finance Agency announced they will allow homeowners with loans backed by Fannie Mae and Freddie Mac to receive an additional three months of forbearance, extending total payment relief to up to 18 months. Qualified homeowners must already be in a forbearance plan as of the end of February.
Housing Supply Overview
Buyer demand continued to be robust in February, leading to many multiple offer situations as housing supply continues to remain severely constrained in most segments. This imbalance of prospective buyers to available homes for sale will continue to support multiple offers and, with it, higher home sales prices, as we go into the typically busy spring market. For the 12-month period spanning March 2020 through February 2021, Pending Sales in the San Diego were up 4.7 percent overall. The price range with the largest gain in sales was the $5,000,001 and Above range, where they increased 55.0 percent.
The overall Median Sales Price was up 9.4 percent to $640,000. The property type with the largest price gain was the Single-Family Homes segment, where prices increased 11.5 percent to $725,000. The price range that tended to sell the quickest was the $500,001 to $750,000 range at 23 days; the price range that tended to sell the slowest was the $5,000,001 and Above range at 96 days.
Market-wide, inventory levels were down 57.3 percent. The property type with the smallest decline was the Condos - Townhomes segment, where they decreased 52.1 percent. That amounts to 0.8 months supply for Single-Family homes and 0.9 months supply for Condos.
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