San Diego Real Estate Market Update – December 2021
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Monthly Indicators
The economy is improving, unemployment is falling, and the U.S. real estate market remains strong as we head into the holiday season, a period when activity typically slows as people take time to travel, celebrate, and spend time with loved ones. Although the market is not as frenetic as was seen earlier this year, buyer demand is high, bolstered by attractive mortgage rates and a low supply of inventory.
Closed Sales decreased 12.3 percent for Detached homes and 11.6 percent for Attached homes. Pending Sales decreased 0.3 percent for Detached homes and 6.5 percent for Attached homes. Inventory decreased 44.0 percent for Detached homes and 64.8 percent for Attached homes.
The Median Sales Price was up 14.7 percent to $860,000 for Detached homes and 25.1 percent to $595,000 for Attached homes. Days on Market remained flat for Detached homes but decreased 16.0 percent for Attached homes. Supply decreased 50.0 percent for Detached homes and 66.7 percent for Attached homes.
The most recent data from the National Association of REALTORS® reports the median single-family existing home sales price rose 16% in the third quarter of this year to $363,700, with all four regions of the country experiencing double-digit price growth. In new construction, builder confidence increased in November, surpassing analyst expectations and rising to 83 on the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI), the highest level since spring, despite persistent labor and supply chain challenges and a shortage of available lots.
Housing Supply
As fall winds down and winter approaches, the real estate market continues to follow typical seasonality trends. After a year of record-setting activity, homes are still selling quickly and at a steady pace, and strong demand and low inventory help ensure the market will remain competitive for some time to come. Although sales prices continue to rise and interest rates are trending higher as well, home sales activity remains strong as we enter the holiday season. For the 12-month period spanning December 2020 through November 2021, Pending Sales in the San Diego were up 8.2 percent overall. The price range with the largest gain in sales was the $5,000,001 and Above range, where they increased 111.2 percent.
The overall Median Sales Price was up 16.8 percent to $730,000. The property type with the largest price gain was the Single-Family Homes segment, where prices increased 18.3 percent to $835,000. 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 87 days.
Market-wide, inventory levels were down 52.3 percent. The property type with the smallest decline was the Single-Family Homes segment, where they decreased 44.0 percent. That amounts to 0.6 months supply for Single-Family homes and 0.5 months supply for Condos.
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