California's housing market faced challenges in April, as higher mortgage rates and a shortage of available homes for sale contributed to a decline in home sales. However, the statewide median home price reached over $800,000 for the first time in six months, according to a report by the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). The San Diego County housing market showed mixed results during April 2023.
While there was a modest increase in the median sold price of existing single-family homes, there was a significant decline in the number of homes sold. These trends suggest a market that is adjusting and possibly transitioning to a more balanced state.
San Diego County Housing Market April 2023
The real estate market in San Diego County has been a topic of interest for many potential buyers and sellers. April 2023 brought some notable changes in the housing market, which can have a significant impact on the decisions of those involved. Let's take a closer look at the data and trends for the month.
Median Sold Price of Existing Single-Family Homes
One of the crucial factors to consider when analyzing the housing market is the median sold price of existing single-family homes. In April 2023, the median sold price in San Diego County stood at $930,000. This figure reflects a 1.6% increase compared to the previous month, March 2023, when the median sold price was $915,000. However, when compared to April 2022, there has been a decline of 4.6% in the median sold price, as it was recorded at $975,000 during that period.
Sales figures play a vital role in understanding the dynamics of the housing market. In April 2023, San Diego County experienced a decrease in sales compared to the previous month and the same period the previous year. The number of home sales dropped by 8.2% from March 2023. When compared to April 2022, there was a significant decline of 36.9% in the number of homes sold.
Price Movement Month-to-Month (MTM) and Year-to-Year (YTY)
Analyzing the month-to-month and year-to-year changes in prices provides valuable insights into the market's direction. In April 2023, San Diego County experienced a positive price movement compared to the previous month, with a 1.6% increase in the median sold price. However, when comparing it to April 2022, there has been a 4.6% decline in the median sold price, indicating a cooling trend in the market.
Conversely, the year-to-year sales data indicates a substantial decrease. The number of homes sold in April 2023 dropped by 36.9% compared to the same period in the previous year. This decline in sales could be attributed to various factors, including changes in buyer preferences, economic conditions, or market saturation.
Condo Housing Market Trends in San Diego County
The condo market in San Diego County is an integral part of the real estate landscape. Understanding the trends and dynamics within this segment can provide valuable insights for buyers and sellers. The condo market in San Diego County during April 2023 exhibited stability in terms of median sold prices, with no change compared to the previous month.
However, there was a notable decline in the number of condos sold. These trends indicate a market that may be experiencing a balancing act between supply and demand, with potential shifts in buyer preferences and market conditions. Let's delve into the data and trends for April 2023.
Median Sold Price of Existing Condos and Townhomes
The median sold price of existing condos and townhomes is a key metric to gauge the market's performance. In April 2023, the median sold price in San Diego County stood at $635,000. Interestingly, this figure remained the same as the previous month, March 2023, when the median sold price was also $635,000. However, when compared to April 2022, there was a decline of 3.4% in the median sold price, as it was recorded at $657,500 during that period.
Examining the sales statistics is crucial to understanding the level of activity in the condo market. In April 2023, San Diego County experienced a decrease in sales compared to both the previous month and the same period in the previous year. The number of condo sales dropped by 8.7% from March 2023. When compared to April 2022, there was a significant decline of 33.4% in the number of condos sold.
Price Movement Month-to-Month (MTM) and Year-to-Year (YTY)
Analyzing the month-to-month and year-to-year changes in prices provides valuable insights into the market's direction. In April 2023, San Diego County's median sold price remained steady with no change compared to the previous month. However, when comparing it to April 2022, there has been a 3.4% decline in the median sold price, indicating a slight cooling trend in the condo market.
The year-to-year sales data paints a more substantial decline. The number of condos sold in April 2023 dropped by 33.4% compared to the same period in the previous year. This decline in sales suggests a shift in buyer demand or other market factors affecting the condo segment in San Diego County.
Is San Diego a Seller's Housing Market?
The following San Diego housing market trends are based on single-family, condo, and townhome properties listed for sale on Realtor.com. Land, multi-unit, and other property types are excluded. San Diego County, California is a highly sought-after location for home buyers and sellers alike. With a beautiful coastal location, thriving job market, and endless amenities, it's no surprise that San Diego County's real estate market is booming.
Median Listing Home Price and Price per Square Foot
In April 2023, the median listing home price in San Diego County was $949,000, indicating a 6% increase compared to the previous year. Additionally, the median listing home price per square foot stood at $583. These figures reflect the prices at which homes are listed for sale, providing an overview of the market's overall price range.
Sale-to-List Price Ratio
The sale-to-list price ratio is a crucial metric to assess the negotiation power of sellers. In San Diego County, CA, homes sold for approximately the asking price on average in April 2023, with a sale-to-list price ratio of 100%. This ratio suggests that sellers have been able to achieve their desired asking prices for their properties.
Days on Market
The average number of days a home spends on the market can provide insights into the level of buyer interest and the speed of transactions. In San Diego County, CA, homes typically sell after an average of 30 days on the market. The median days on the market have remained relatively flat since the previous month but have seen a slight increase compared to the previous year.
San Diego County encompasses a diverse range of cities, each with its own unique real estate landscape. La Jolla stands out as the most expensive city in San Diego County, with a median listing home price of $2.7 million. On the other end of the spectrum, Lakeside is the most affordable city, with a median listing home price of $725,000.
Seller's Market Assessment
Considering the median listing home price, sale-to-list price ratio, and average days on market, it can be concluded that San Diego County, CA is currently a seller's market. The median listing home price is showing an upward trend, indicating strong demand and competition among buyers. Additionally, homes are selling close to their asking prices, further reinforcing the advantageous position of sellers.
It is important to note that market conditions can change over time. Factors such as inventory levels, economic trends, and buyer preferences can influence the balance between supply and demand. Therefore, it is essential for sellers to stay informed about market fluctuations and work closely with real estate professionals to navigate the San Diego County housing market successfully.
San Diego Housing Market Forecast 2023-2024
Let us look at the price trends recorded by Zillow (a real estate database company) over the past few years. The housing market in San Diego has experienced some notable changes over the past year. As of April 30, 2023, the average home value in the San Diego-Carlsbad area stands at $850,397. This represents a decrease of 3.3% compared to the previous year. Additionally, homes in this area typically go pending within a short period of around 10 days, indicating a high level of buyer demand.
Average Home Values
The current average home value of $850,397 provides an overview of the general price range in the San Diego-Carlsbad area. While there has been a slight decline of 3.3% over the past year, it's important to consider that housing market values can fluctuate due to various factors such as economic conditions, supply and demand dynamics, and overall market trends.
Based on the available data, there is a positive market forecast for the San Diego housing market. The forecast suggests a projected increase of 3.6% in home values over the next year, starting from April 30, 2023. This projection indicates that the market is expected to rebound and experience moderate growth in the coming months.
Sale-to-List Ratio and Sales Price Performance
The sale-to-list ratio is an essential metric that reflects the negotiation power of sellers and the level of buyer competition. As of March 31, 2023, the median sale-to-list ratio in San Diego stands at 0.997. This ratio indicates that, on average, homes are selling close to their list prices, showcasing a balanced market environment.
Additionally, the market has seen 36.4% of sales going over the list price, indicating instances of competitive bidding and potential multiple offers. On the other hand, 50.2% of sales have occurred under the list price, suggesting room for negotiation and potential opportunities for buyers.
Median Days to Pending
The median number of days it takes for a home to go pending in San Diego as of April 30, 2023, is 10 days. This swift pace indicates a high level of buyer interest and competition, with properties quickly attracting offers and moving through the sales process.
San Diego Area Housing Market Report
According to the Greater San Diego Association of REALTORS®, the housing market in the Greater San Diego Area witnessed some notable changes in April 2023. The Greater San Diego Area housing market in April 2023 exhibited a slowdown in closed and pending sales, along with a decrease in inventory. The median sales prices also experienced a decline, while the number of days on market increased significantly. However, there was an increase in housing supply, which might provide more options for buyers. Let's dive into the key highlights and trends:
The number of closed sales experienced a significant decline in April 2023. Detached homes saw a decrease of 40.3 percent, while attached homes experienced a slightly lower decline of 35.0 percent. This decrease indicates a slowdown in the pace of completed home sales in the region.
Pending sales, which represent homes under contract but not yet closed, also saw a notable decrease in April 2023. Detached homes had a decline of 28.8 percent, while attached homes experienced a slightly higher decrease of 29.1 percent. This decline suggests a reduced level of buyer activity and a slower pace of homes entering into the pending stage.
The available housing inventory in the Greater San Diego Area decreased in April 2023. Detached homes saw a decline of 22.8 percent, and attached homes experienced a relatively lower decrease of 13.5 percent. This decrease in inventory signifies a tighter market with fewer homes available for sale.
Median Sales Price
The median sales price for homes in the Greater San Diego Area also experienced a decline in April 2023. Detached homes saw a decrease of 4.7 percent, with the median sales price reaching $952,600. Attached homes had a smaller decline of 3.0 percent, with a median sales price of $640,000. These declines suggest a slight softening in home prices during this period.
Days on Market
The number of days homes spent on the market before being sold increased significantly in April 2023. Detached homes experienced a substantial increase of 52.6 percent in days on market, while attached homes saw an even higher increase of 76.5 percent. This increase indicates a lengthening of the selling process and potentially more time required to attract buyers in the current market conditions.
The supply of homes in the Greater San Diego Area increased during this period. Detached homes saw an 18.2 percent increase in supply, while attached homes experienced a larger increase of 37.5 percent. This increase suggests a greater number of homes available for potential buyers, potentially contributing to the longer days on market and the overall market dynamics.
The San Diego real estate market has been ranked among the ten most expensive real estate markets in the country, though it ranks below several other West Coast cities. This creates massive demand for San Diego rental properties by those who simply cannot afford to buy homes. The rental market will continue to grow as the city grows an estimated 500,000 population by 2050, adding tens of thousands each year. The median rent in San Diego is $2700. The rent you’d receive on single-family San Diego rental properties would, of course, be much higher.
If you find a good bargain and make it family-friendly, you could charge well over $3000 a month. If you can convert San Diego rental properties into smaller units, you’d receive around $2200 a month for a one or two-bedroom apartment. The cash-on-cash returns for properties in the San Diego housing market is around 2.5% for traditional rental properties and nearly 2% if you rent on Airbnb. The fact that the city isn’t too dependent on tourism means you could rent properties on the beach to newcomers, locals, and students if tourism is slow.
Before the pandemic, the average rent for an apartment in San Diego had been growing at 4% year-over-year (source: RentCafe). About 40% of the apartments can be rented for less than $2000, and 60% of the apartments can be rented for more than $2,000 per month. This shows that rent prices are very high in San Diego.
Homeowners vs Renters Statistics: According to the most recent 2020 American Community Survey census data, San Diego County has a renter percentage of 46.7% which is the second most renter percentage of all the counties in the greater San Diego County region. The homeowner percentage is 53.3%. The monthly cost of ownership for property owners in San Deigo is around $2,073.
The median gross rent is $1,658, which is the third most expensive among all other counties in the greater San Diego County region. Comparing rental rates to the United States average of $1,062, San Diego County is 56.1% larger. Also, compared to the state of California ($1,503), San Diego County is 10.3% larger.
San Diego Rent Market Trends & Prices
As of May 2023, the average rent for a 1-bedroom apartment in San Diego, CA is $2,422. This is a 1% increase compared to the previous year. Over the past month, the average rent for a studio apartment in San Diego increased by 2% to $1,938. The average rent for a 1-bedroom apartment increased by 1% to $2,422, and the average rent for a 2-bedroom apartment increased by 1% to $3,205.
- Two-bedroom apartment rents average $3,205 which is a 7% increase from last year.
- Three-bedroom apartment rents average $4,300 which is a 27% increase from last year.
- Four-bedroom apartment rents average $5,000 which is a 21% increase from last year.
FAQs About San Diego Housing Market
Some of the information contained in this article was pulled from third-party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.