The San Diego housing market in 2023 has seen dynamic changes in prices, sales, and trends. Let's delve into the latest statistics and trends to answer key questions that potential buyers and sellers may have about the current real estate landscape in San Diego.
San Diego County Housing Market Trends
In August 2023, the California housing market witnessed a seasonally adjusted annualized rate of 254,740 closed escrow sales for existing, single-family detached homes, according to the California Association of Realtors. This figure represents what the total number of home sales for the year would be if the pace witnessed in August were maintained throughout the year. It's important to note that this figure is adjusted for seasonal factors that typically influence home sales.
For San Diego County, the median sold price of existing single-family homes stood at $1,000,000 in August 2023, showing an increase from $969,020 in July 2023. This represents a 3.2% month-to-month increase and a substantial 12.8% year-over-year increase. In contrast, the sales figures experienced a 2.7% month-to-month increase but a -16.0% year-over-year decrease.
Key Questions Answered
Are housing prices dropping in San Diego?
No, the data indicates that housing prices in San Diego are not dropping. In fact, there has been a significant 12.8% increase in the median sold price of existing single-family homes compared to the previous year, showcasing a robust real estate market in the region.
Is it wise to buy a house in San Diego right now?
With the current trend of rising home prices in San Diego, buying a house now could be a strategic decision. However, it's crucial to carefully evaluate your financial situation, market conditions, and long-term goals before making any real estate investment.
Is San Diego a seller's market right now?
Yes, the data suggests that San Diego is currently a seller's market. The increase in median sold prices and the decrease in year-over-year sales indicate a competitive market where sellers have the advantage. Buyers may face higher prices and increased competition in purchasing a property.
The San Diego housing market in 2023 showcases a notable increase in median sold prices, indicating a robust real estate environment. However, the decrease in year-over-year sales also signifies a competitive market favoring sellers. It's advisable for both buyers and sellers to stay informed about the latest trends and seek professional guidance to make well-informed decisions in this dynamic real estate landscape.
San Diego Housing Market Forecast 2023-2024
Zillow, a prominent real estate marketplace, provides valuable insights into the San Diego-Carlsbad housing market. This analysis delves into the key data points and trends that Zillow offers, shedding light on the market forecast and its significance in the real estate landscape.
San Diego-Carlsbad Area: An Overview
The San Diego-Carlsbad area, situated in Southern California, encompasses San Diego County, including the city of Carlsbad. San Diego is known for its beautiful beaches, favorable climate, and diverse economy that includes a strong emphasis on defense, tourism, international trade, and research. It's a thriving region attracting individuals and families seeking a high quality of life.
Now, let's focus on the housing market within this area.
Housing Market Size and Average Home Value
The San Diego-Carlsbad area constitutes a significant portion of California's real estate landscape. The average home value in this region stands at $887,962. Over the past year, there has been a slight decline of 1.4%, indicating a modest adjustment in home values.
Zillow's 1-Year Market Forecast
Zillow's 1-year market forecast as of August 31, 2023, predicts a growth rate of 5.1% in the San Diego-Carlsbad housing market. This projection suggests a positive trajectory, potentially presenting opportunities for homeowners and investors alike.
Market Trends and Key Indicators
Examining market trends and indicators is vital for understanding the dynamics of the real estate environment. As of July 31, 2023, the median sale-to-list ratio in the area was 1.007, indicating homes were selling slightly above the listed price on average.
Furthermore, data from the same period reveals that 57.8% of sales were transacted over the list price, underscoring a competitive market. Conversely, 29.3% of sales were below the list price, showcasing a range of options for buyers.
The median days to pending, a crucial indicator of market speed, was 10 days as of August 31, 2023. This rapid transition from listing to pending underlines the active and dynamic nature of the San Diego-Carlsbad housing market.
Hence, the San Diego-Carlsbad area presents a diverse and active real estate market. The Zillow forecast of a 5.1% growth in the coming year reflects optimism and potential for homeowners and investors. With a competitive market, homes transacting above the list price, and a relatively quick sale process, this region holds promise for those looking to engage in the real estate market.
San Diego Area Housing Market Report
The Greater San Diego Association of REALTORS® provides valuable insights into the housing market in the San Diego area through their comprehensive report. Let's analyze the latest data to gain a clear understanding of the trends and dynamics shaping the real estate landscape in this region.
Overview of Closed Sales and Pending Sales
In the San Diego area, there was a noticeable decrease in closed sales, with detached homes experiencing a 19.5% drop, and attached homes witnessing a 19.3% decrease. Similarly, pending sales saw a decline, with detached homes down by 24.1% and attached homes down by 21.2%.
Inventory and Supply Trends
Inventory dynamics showed a mix of changes. Inventory for detached homes decreased by 7.3%, whereas for attached homes, it saw a modest increase of 0.9%. On the other hand, supply exhibited a significant increase, rising by 30.0% for detached homes and 46.7% for attached homes, presenting a notable shift in the market's supply-demand dynamics.
Median Sales Price and Days on Market
The median sales price demonstrated an upward trend, indicating a robust market. For detached homes, there was a substantial 13.5% increase, reaching a median sales price of $1,025,000. Attached homes also saw a notable 8.8% increase in median sales price, reaching $677,000.
Additionally, days on market, a key metric indicating the speed of sales, decreased for both detached and attached homes. Detached homes experienced a 10.7% decrease, and attached homes saw a 12.0% decrease, further emphasizing the active and competitive nature of the market.
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.
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 Rent Market Trends & Prices
As of September 2023, the average rent for a 1-bedroom apartment in San Diego, CA is $2,445. This is a 6% decrease compared to the previous year. Over the past month, the average rent for a studio apartment in San Diego decreased by -1% to $2,095. The average rent for a 1-bedroom apartment remained flat, and the average rent for a 2-bedroom apartment decreased by -2% to $3,228.
- Two-bedroom apartment rents average $3,228 which is a 5% decrease from last year.
- Three-bedroom apartment rents average $4,178 which is a 1% decrease from last year.
- Four-bedroom apartment rents average $4,800 which is a 3% increase from last year.
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.
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.neighborhoodscout.com/ca/san-diego/real-estate
- https://www.realtor.com/realestateandhomes-search/San-Diego_CA/overview
- https://www.sandiegorealestatehunter.com/blog/san-diego-real-estate-market-forecast
- http://www.homebuyinginstitute.com/news/san-diego-more-moderate-forecast
- https://www.zillow.com/research/2020-hot-markets-south-26293/
- https://journal.firsttuesday.us/san-diego-housing-indicators-2/29246/
- https://www.rentcafe.com/average-rent-market-trends/us/ca/san-diego
