San Diego Real Estate Market Update
Low Housing Inventory on the Market
At the end of last year, inventory was tight, and homes were selling quickly! Look out for similar patterns in 2021 that lead to favorable conditions for sellers and a competitive market for buyers! San Diego Housing Inventory currently has 2,556 homes available for sale on the market today. This shattered the prior low in January 2013 4,329 homes on the market. Just one year ago the inventory sat at 4,744, thus 86% more homes available to buyers. The low supply has resulted in an average market time of 36 days or less. (For reference 6 months (180 days) is considered a balanced market)
With the San Diego Real Estate Market being such a hot sellers’ market, it is common for properties to have multiple offers and bidding wars. Low mortgage rates have fueled the housing market. When mortgage rates fall monthly payments fall and affordability improves which in turn heats up the market. Home values are projected to rise in conjunction with mortgage rates which makes this a prime time to purchase. As values and mortgage rates rise, mortgage payments will increase, and affordability will decrease.
We need more space
Homes with extra rooms and closed floor plans are more appealing to buyers looking for space to accommodate home offices, gyms, etc. Likewise, properties with ADUs (accessory dwelling units) like a granny flat or converted shed may also attract multi-generational families or those looking for rental income. For more information on San Diego ADUs visit https://www.sandiegocounty.gov/content/sdc/pds/bldg/adu.html.html
The market is rebounding
Following the uncertainty of 2020, the San Diego Real Estate Market has quickly rebounded to pre-pandemic levels and remains one of the earliest industries to do so. The detached home values in San Diego increased 10% in 2020 and are conservatively projected to increase 4.4% over the next year. Mortgage rates and demand are driving the market, the caution lays in external forces of the pandemic.
Increased buyer demand
Many millennials have fast-tracked plans to buy with the money they saved while staying home. Plus, mortgage rates continue to hover at historic lows, making home ownership more affordable for many. This year could be a perfect time for those with secure employment to buy. The average first time home buyer’s down payment in California is 33% of the purchase price, demonstrating that first-time buyers have substantial savings and strong incomes to support the purchase.
A country on the move
As circumstances change and businesses offer more opportunities to work remotely, Americans are moving across the board. They aren’t just moving from cities to suburbs- in some cases, they are switching from city-to-city, suggesting that many urban markets are still quite healthy. A recent California Association of Realtors study suggests that 31% of California home sellers are relocating to a different state and 22% are relocating in the same state. San Diego, for example, is experiencing an influx of buyers from the Bay area and Los Angeles.
San Diego Real Estate Market Update Conclusion
Don’t let the low inventory stop you from starting your home buying journey, there’s still plenty of homes coming on the market daily. Start your search for your new home here: https://search.legacyrealtynetwork.com/idx/search/basic
Thinking of leaving San Diego? Help with the low inventory and sell your house with us. Get your current home value now: https://search.legacyrealtynetwork.com/idx/homevaluation