Between the Pandemic and an election year, it was clear that no one had a good read on the San Diego housing market and the fact that it would ultimately turn out to be one of the best years in real estate since 2013/2014 season was a shock to most people including agents. With uncertainty holding the headlines back in March and April, many thought we would see a market dip or correction. However, the opposite has occurred. How can this be? Well, it’s a simple combination of the extremely low inventory of and record low interest. The interest rates dipped under 3% for a good portion of the summer and fall depending on the borrower of course, which borders on the idea that it’s almost FREE money to invest with.
Looking back at October housing market numbers, we generally saw a busier month than we normally do as compared to past years. A recurring combination of buyer activity being stronger year over year and while housing market supply numbers saw a decline in the same time period. How much of a decline? Market-wide inventory levels were down nearly 40% as compared to the month of October in 2019. This is why we can expect to see multiple offer situations continue through the winter season and potentially into the spring.
Taking a look at the comparison of the 2019 year to date housing market stats as compared to the year to date 2020 stats show similarities. New listings for detached single-family homes show an 18.5% decline. Up to this point in 2019, we saw a total of 41,231 new listings while this year only 33,596 hit the housing market. Both pending (under contract) and sold homes in the same category also saw a decline with pending detached homes down 4.5% and sold homes down 7.3%. It’s no surprise that with limited inventory you have a decline in the categories relating to housing market transactions.
The positive numbers we are seeing in the housing market are mostly on the seller side of the market. As with any supply and demand market, when you have an unequal pull on one side, the other benefits. The median sales price for detached homes in San Diego saw an 8.5% increase to $700,000 and days on the market saw a decline of 18.8% from 32 days to 26 days. Both of these stats highly benefiting any homeowner looking to sell their San Diego home. Lastly, as you can imagine with the lopsided demand, sellers are seeing offers on average at 99% of their asking prices.