Monthly Market Overview North San Diego County

Every market is unique, yet the national sentiment has given rise to the notion that housing markets are stalling. Although desirous buyers are out on an increasing number of showings, there remains a limited number of desirable listings. And although mortgage rates have remained enticingly low, home prices have reached unaffordable levels for many new entrants into the housing pool at exactly the same time that established owners are proving to be less interested in moving.

  • Closed Sales decreased 13.8 percent for Detached homes and 9.8 percent for Attached homes.
  • Pending Sales decreased 11.0 percent for Detached homes but increased 1.0 percent for Attached homes.
  • The Median Sales Price was up 7.0 percent to $679,000 for Detached homes and 11.1 percent to $439,000 for Attached homes.
  • Days on Market decreased 10.8 percent for Detached homes and 14.8 percent for Attached homes.
  • Supply decreased 30.0 percent for Detached homes and 18.8 percent for Attached homes.

Last year at this time, the national storyline was about how high demand was propping up sales and prices despite low inventory and months of supply. That has actually continued to be a familiar refrain for many months in 2017 and now for the past couple of years. But with the likes of Hurricanes Harvey
and Irma, different employment outlooks, disparate incomes, varying new construction expectations and potential housing policy shifts, regional differences are becoming more prevalent and pronounced.

Download (Sep-2017-Monthly.pdf)

Report: San Diego needs to triple annual housing production

San Diego needs to roughly triple the number of homes it builds each year to keep up with demand and keep prices down, said a San Diego Housing Commission report released Thursday.

The commission, which is the city’s housing authority, produced the report with other government agencies to address rising rent and home costs. It said the city needs to take steps to increase the supply of homes — seen as the biggest reason for rising costs — such as eliminating required parking spots and increasing density in some areas.

The report argued the city would need an additional 150,000 to 220,000 housing units — that’s apartments, condos and single-family homes — by 2028, or 17,000 to 24,000 a year. It’s a tall order because the city’s top annual production rate in the last five years was 6,400 units.

“Whether you are working a minimum wage job or have a college degree and working a full-time job making a decent amount of money, you still can’t afford to rent or buy in San Diego,” said Councilman David Alvarez at a press conference Thursday at City Hall. “That is alarming.”

Read the rest HERE.

Monthly Market Overview August 2017

August tends to mark the waning of housing activity ahead of the school year. Not all buyers and sellers have children, but there are enough parents that do not want to uproot their children during the school year to historically create a natural market cooldown before any actual temperature change. Competition is expected to remain fierce for available listings. Savvy sellers and buyers know that deals can be made well into the school months, as household formations take on many shapes and sizes.

  • Closed Sales decreased 4.7 percent for Detached homes and 11.6 percent for Attached homes.
  • Pending Sales increased 0.9 percent for Detached homes but decreased 0.7 percent for Attached homes.
  • The Median Sales Price was up 8.9 percent to $690,000 for Detached homes and 4.8 percent to $435,000 for Attached homes.
  • Days on Market decreased 12.1 percent for Detached homes and 20.0 percent for Attached homes.
    Supply decreased 31.3 percent for Detached homes and 23.5 percent forAttached homes.

The prevailing trends lasted through summer. This was expected, since there have not been any major changes in the economy that would affect housing. Factors such as wage growth, unemployment and mortgage rates have all been stable. Every locality has its unique challenges, but the whole of
residential real estate is in good shape. Recent manufacturing data is showing demand for housing construction materials and supplies, which may help lift the ongoing low inventory situation in 2018.

Download (Aug-2017-Monthly.pdf)