San Diego Real Estate Market Update – October 2021
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Monthly Indicators
Nationwide, existing home sales were down slightly in August, falling 2% after two consecutive months of increases, according to the National Association of REALTORS®. The decline in existing home sales coincides with rising sales prices, which have continued to soar into fall, with the median sales price of existing homes up 14.9% compared to last year. Declining affordability has had a significant impact on homebuyers, many of whom have been priced out of the market and are choosing to wait for sales prices to ease before resuming their home search.
Closed Sales decreased 16.1 percent for Detached homes and 0.7 percent for Attached homes. Pending Sales decreased 12.6 percent for Detached homes and 10.6 percent for Attached homes. Inventory decreased 42.6 percent for Detached homes and 60.1 percent for Attached homes.
The Median Sales Price was up 15.9 percent to $860,000 for Detached homes and 16.5 percent to $565,000 for Attached homes. Days on Market decreased 19.2 percent for Detached homes and 20.0 percent for Attached homes. Supply decreased 47.1 percent for Detached homes and 66.7 percent for Attached homes.
There are signs the market may be shifting, however. New listings have continued to hit the market, bucking seasonality trends commonly seen in the fall, a time when listing and sales activity typically slows as children return to school. As inventory increases, competition for homes may soften, and could even bring a moderation in sales prices, which, after 114 months of year-over- year gains, would be music to the ears of homebuyers throughout the country.
Housing Supply
According to the National Association of REALTORS®, the number of first-time homebuyers declined to 29%, the lowest level in years, as bidding wars, competition from cash buyers, and a lack of affordable housing have caused some buyers to put their home plans temporarily on hold. With sales prices posting double-digit increases year-over-year, some first-time buyers have found they may lack the financial resources to buy a home and have decided to wait for a change in their personal or economic conditions before continuing their home search. For the 12-month period spanning October 2020 through September 2021, Pending Sales in the San Diego were up 13.7 percent overall. The price range with the largest gain in sales was the $5,000,001 and Above range, where they increased 104.3 percent.
The overall Median Sales Price was up 15.8 percent to $712,000. The property type with the largest price gain was the Single-Family Homes segment, where prices increased 18.1 percent to $815,000. The price range that tended to sell the quickest was the $750,001 to $1,000,000 range at 19 days; the price range that tended to sell the slowest was the $5,000,001 and Above range at 90 days.
Market-wide, inventory levels were down 49.3 percent. The property type with the smallest decline was the Single-Family Homes segment, where they decreased 42.6 percent. That amounts to 0.9 months supply for Single-Family homes and 0.7 months supply for Condos.
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