The San Diego housing market demonstrated positive momentum in January 2024, with an increase in the median sold price and stable year-over-year sales figures. Despite the broader economic challenges, the real estate landscape in San Diego remains resilient, offering potential opportunities for both buyers and sellers.
How is the San Diego housing market doing currently?
California's existing home sales rebounded in January, reaching the highest level in six months. This positive shift can be attributed to a significant pullback in mortgage rates at the end of 2023, according to the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). The closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 256,160 in January.
Despite a 3.8 percent decrease in California's statewide median home price from December's $819,740 to $788,940 in January, there was a notable 5.0 year-over-year gain. This marked the seventh consecutive month of annual price gains in the state, reflecting a resilient real estate market.
San Diego Housing Market Performance
Examining the specific data for the San Diego housing market in January 2024:
- Median Sold Price: The median sold price of existing single-family homes in San Diego was $925,000, showing a month-to-month increase from $911,500 in December 2023. This represents a 1.5% change.
- Sales: In terms of sales, the market experienced a month-to-month decrease of -0.9%, with the figures moving from $824,900 in January 2023 to $925,000 in January 2024.
- Year-Over-Year Trends: Comparing year-over-year data, there was a substantial 12.1% increase in the median sold price and a stable 0.0% change in sales.
Key Insights and Analysis
The positive year-over-year gain in the median sold price indicates sustained growth in San Diego's housing market. The 12.1% increase showcases the market's resilience and attractiveness to potential buyers. Despite the month-to-month fluctuations, the overall trend remains upward, signaling a robust real estate landscape.
The 0.0% change in sales year-over-year suggests stability in the demand for homes in San Diego. While there was a slight month-to-month dip, the market appears to be maintaining its equilibrium. It's essential to consider external factors, such as economic conditions and employment rates, to better understand the dynamics influencing sales fluctuations.
Are Home Prices Dropping in San Diego?
As of January 2024, the San Diego housing market reflects a stable trajectory with a modest month-to-month increase of 1.5% in the median sold price, reaching $925,000. The notable 12.1% year-over-year gain indicates a resilient market. While the data doesn't suggest a decline in home prices, it's crucial to consider external factors like mortgage rates and economic conditions that influence market dynamics. Buyers and sellers should monitor trends over time for a more comprehensive understanding of San Diego's real estate landscape.
Southern California's Real Estate Landscape in January 2024
Zooming in on Southern California's housing market performance in January 2024:
- Median Sold Price: The median sold price of existing single-family homes in Southern California remained stable at $790,000, showing no month-to-month change from December 2023.
- Sales: The region experienced a month-to-month decline of -12.2% in sales, with figures moving from $738,250 in January 2023 to $790,000 in January 2024.
- Year-Over-Year Trends: Despite the month-to-month sales decrease, there was a notable 7.0% year-over-year increase in the median sold price and a 2.2% rise in sales.
Comparative Analysis: San Diego vs. Southern California
Contrasting the housing market trends in San Diego and Southern California:
- Median Sold Price: While San Diego experienced a month-to-month increase of 1.5%, Southern California maintained stability with a 0.0% change.
- Sales: San Diego saw a month-to-month sales decrease of -0.9%, while Southern California faced a more substantial decline of -12.2%.
- Year-Over-Year Performance: Both regions showed positive year-over-year trends in the median sold price, with San Diego at 12.1% and Southern California at 7.0%. However, San Diego had stable year-over-year sales, while Southern California exhibited a 2.2% increase.
The stability in the median sold price of Southern California, with no month-to-month change, suggests a consistent market valuation. Despite the decline in sales, the region's real estate market remains resilient, potentially indicating a temporary shift in buyer demand rather than a long-term trend.
Comparatively, San Diego's slight month-to-month increase in the median sold price indicates sustained buyer interest, contributing to the region's overall positive year-over-year performance. The variations in sales figures between San Diego and Southern California highlight the diverse dynamics at play within different segments of the Southern California real estate market.
San Diego Housing Market Forecast for 2024 and 2025
According to Zillow, the San Diego-Carlsbad housing market has witnessed significant changes, making it crucial for both homebuyers and sellers to stay informed. Let's delve into various housing metrics to gain a comprehensive understanding of the current scenario.
1. Average Home Value:
The average San Diego-Carlsbad home value stands at $902,199, reflecting an impressive 8.1% increase over the past year. This surge is indicative of the market's resilience and attractiveness to potential buyers.
2. Days on Market:
Homes in this region are moving swiftly, with an average time to pending status being approximately 17 days. This highlights the high demand and competitive nature of the San Diego housing market.
3. Market Forecast:
The +6.2% 1-year market forecast, as of January 31, 2024, suggests a positive trajectory for the San Diego housing market. This forecast provides insights into the anticipated growth and stability over the coming months.
Detailed Metrics:
4. For Sale Inventory:
As of January 31, 2024, the housing market boasts a total of 4,090 properties available for sale. This inventory level is a key factor influencing market dynamics and buyer choices.
5. New Listings:
In the same period, there were 1,531 new listings, showcasing a dynamic market with ongoing property availability. This influx of new listings contributes to a diverse range of options for potential buyers.
6. Median Sale to List Ratio:
The 1.000 median sale to list ratio, recorded as of December 31, 2023, indicates a balanced market where properties are generally selling close to their list prices. This ratio is a critical indicator of market competitiveness.
7. Median Sale Price:
The median sale price as of December 31, 2023, is $839,167. This figure provides valuable insights into the affordability and pricing trends within the San Diego housing market.
8. Median List Price:
As of January 31, 2024, the median list price stands at $924,315. This metric reflects the current expectations of sellers in terms of property valuation and market value.
9. Percent of Sales Over/Under List Price:
Examining the data from December 31, 2023, 43.6% of sales were recorded above the list price, while 43.2% were below. These percentages provide insights into the negotiation dynamics and buyer-seller interactions in the market.
Is San Diego a Buyer's or Seller's Housing Market?
Assessing the current state of the San Diego-Carlsbad housing market, it leans towards being a seller's market. The limited inventory of 4,090 properties for sale, coupled with the swift 17-day average time to pending status, indicates a high demand for homes. In such scenarios, sellers often have the advantage, with the potential for competitive offers and faster transactions.
Are Home Prices Dropping in San Diego?
Contrary to a decline, the average home value in San Diego-Carlsbad has seen a substantial 8.1% increase over the past year. This surge in home values suggests a resilient market with sustained demand. The $902,199 average home value reflects a healthy appreciation, making it clear that home prices are not currently on a downward trend.
Will the San Diego Housing Market Crash?
The current data and market forecast of +6.2% for the next year, as of January 31, 2024, do not indicate an impending housing market crash. While real estate markets can be subject to fluctuations, the positive forecast suggests a stable and growing environment. It is crucial to monitor economic factors, but at present, there are no strong indicators of an imminent market crash.
Is Now a Good Time to Buy a House in San Diego?
For potential buyers, the decision to purchase a house in San Diego-Carlsbad depends on various factors. While it is currently a seller's market, the positive market forecast and the potential for continued appreciation make it an attractive time for buyers looking for long-term investments. However, individual circumstances, financing options, and personal preferences should be carefully considered. Consulting with a real estate professional can provide personalized insights and guidance for those contemplating a home purchase.
Greater San Diego Area Housing Market Report
The Greater San Diego housing market, as detailed in the recent report by the Greater San Diego Association of REALTORS®, shows divergent patterns in closed sales, pending sales, inventory, median sales prices, days on market, and supply underscore the complexity of the market dynamics.
Closed Sales: A Mixed Picture
Examining the closed sales data, we observe a contrasting scenario for detached and attached homes. Closed sales for detached homes experienced a 5.5 percent decrease, signaling a potential shift in demand. In stark contrast, attached homes saw an 11.9 percent increase in closed sales, reflecting a different market trend.
Pending Sales: Unveiling Varied Patterns
Turning our attention to pending sales, we notice a nuanced pattern. Detached homes witnessed a 2.0 percent decrease, hinting at a potential slowdown. On the other hand, attached homes displayed a robust 13.9 percent increase in pending sales, pointing towards sustained interest in this segment.
Inventory: Divergence Between Detached and Attached Homes
The inventory dynamics reveal a divergence between detached and attached homes. Detached homes experienced a notable 18.5 percent decrease in inventory, suggesting a tightening supply. In contrast, attached homes saw a 5.2 percent increase in inventory, indicating a different market dynamic.
Median Sales Price: Upward Trajectory
The median sales prices for both detached and attached homes portray an upward trajectory. Detached homes witnessed a significant 15.4 percent increase, bringing the median sales price to $980,000. Attached homes also experienced a noteworthy 10.2 percent increase, reaching a median sales price of $650,000.
Days on Market: Accelerated Pace
Days on market, a crucial metric reflecting the speed of property sales, showed a noteworthy decline for both detached and attached homes. Detached homes saw a 14.0 percent decrease, while attached homes experienced an even more accelerated 15.0 percent decrease, indicating a faster turnaround for property transactions in the Greater San Diego Area.
Supply Dynamics: Detached vs. Attached
The supply dynamics present an interesting contrast between detached and attached homes. While the supply for detached homes remained relatively flat, attached homes witnessed a substantial 25.0 percent increase in supply. This suggests a potential abundance of options for buyers in the attached home segment.
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.
Renters vs. Owners in San Diego
San Diego's property rental market is influenced by several factors, including the local economy, job opportunities, and the overall demand for housing. It's a city known for its mix of urban and suburban neighborhoods, each with its own rental and ownership dynamics.
San Diego had a diverse housing landscape with a mix of renters and property owners.
- Renters: San Diego has a significant population of renters, comprising individuals and families who lease residential properties. This includes apartments, condominiums, townhouses, and single-family homes. The exact percentage of renters relative to property owners can vary by neighborhood and demographic factors.
- Owners: San Diego also has a substantial number of property owners. These are individuals or entities who own residential properties and may either live in their properties or lease them out to renters. Property owners contribute to the diversity of the city's housing options.
Size of the Rental Market
The size of the San Diego property rental market is substantial, with a wide range of rental properties available to residents. This market includes apartments, houses, and various types of housing units. The exact size of the rental market can fluctuate based on factors like population growth, economic conditions, and housing development trends.
Real estate agencies, rental platforms, and government agencies often track and report on the status of the rental market, offering detailed insights into its size and dynamics.
For the most up-to-date and specific information regarding the current state of the San Diego property rental market, including the number of renters and property owners, it's recommended to refer to the latest reports and data from sources like local real estate associations, government housing agencies, and real estate websites.
San Diego's property rental market is an essential component of the city's real estate landscape, offering a wide range of housing options to its diverse population.
San Diego County shows it has a Median Gross Rent of $1,842 which is the third most of all other counties in the greater region. Comparing rental rates to the United States average of $1,163, San Diego County is 58.4% larger. Also, measured against the state of California, rental rates of $1,698, San Diego County is 8.5% larger.
San Diego Apartment Rent Prices
As of February 2024, the median rent for all bedroom counts and property types in San Diego, CA is $2,850. This is +50% higher than the national average. Rent prices for all bedroom counts and property types in San Diego, CA have decreased by 3% in the last month and have decreased by 3% in the last year.
Housing Units and Occupancy
In terms of occupied housing units, San Diego has the following distribution:
- Renter-occupied Households: Renter-occupied households make up 53% of the housing units in San Diego, indicating a significant presence of renters in the city.
- Owner-occupied Households: Owner-occupied households account for 48% of the housing units, highlighting a balanced mix of homeowners in the area.
Affordable and Expensive Neighborhoods
San Diego's neighborhoods offer a range of rental prices, making it accessible for various budgets:
The Most Affordable Neighborhoods:
- Bay Park: The average rent in Bay Park is $2,135 per month.
- University Heights: In University Heights, the average rent is around $2,200 per month.
- North Park: North Park offers an average rent of approximately $2,273 per month.
The Most Expensive Neighborhoods:
- Carmel Valley: Carmel Valley is one of the more expensive neighborhoods, with an average rent of $2,942 per month.
- Mission Valley East: In Mission Valley East, the average rent can go for $2,894 per month.
- Mission Beach: Mission Beach has an average rent of $2,850 per month.
Popular Neighborhoods
Some neighborhoods in San Diego are particularly popular among renters:
- Mission Beach: Mission Beach tops the list with 1,115 listings, making it a sought-after area for renters.
- Pacific Beach: Pacific Beach is also a popular choice, offering 760 listings for prospective renters.
- Ocean Beach: Ocean Beach features 295 places for rent, making it a vibrant neighborhood for renters.
These insights provide a snapshot of the current rental market in San Diego. Rental prices have seen some fluctuations in recent months, with variations in different apartment types. The city offers a range of neighborhoods to suit different budgets and preferences, with a balanced mix of renters and homeowners.
References
- https://www.car.org/
- https://www.car.org/marketdata/data/countysalesactivity
- https://www.sdar.com/press-releases.html
- https://www.zillow.com/SanDiego-ca/home-values
- https://www.zumper.com/rent-research/san-diego-ca