San Diego County Home Prices See Slight Increase

Categories: Business NewsNewsReal Estate & Properties

The San Diego housing market is witnessing an increase in home prices and availability.

News Summary

Home prices in San Diego County have experienced a slight uptick, with the median reaching $900,000 in March, marking a 1.1% increase from the previous month. Despite a year-over-year rise of only 2.7%, sales activity remains dynamic with 2,189 transactions closed. The market showcases both slowing trends and resilience in specific segments, as interest rates rise and housing availability enlarges, reflecting a complex landscape for buyers and sellers alike.

San Diego – Home prices in San Diego County saw a slight uptick in March, with the median home price reaching $900,000, reflecting a 1.1% increase from the previous month. This figure combines sales from single-family houses, townhouses, and condominiums.

Year-over-year, the home prices in San Diego County have risen by 2.7%, although this marks a slowdown compared to the 10% annual increase recorded in March 2022. The number of closed transactions for the month stood at 2,189, which is down 3.8% from the same month last year but shows a promising increase of 8.2% from February.

In March, the availability of homes for sale in the region increased significantly, with approximately 4,900 homes on the market, compared to around 3,800 a year prior. Homes on average took a median of 25 days to sell, a slight increase from 22.5 days in late January. The real estate market appears to be exhibiting signs of slowing down, as indicated by a notable rise in open house signs on weekends.

The last week of March saw a rise in interest rates, with the average for a 30-year fixed-rate mortgage recorded at 6.65%, increasing to 6.81% the following week. This affects buyers significantly, as a typical monthly mortgage payment, based on a 20% down payment, would approximate $4,997, nearly double the average rent in San Diego County.

While the overall market trends reflect a slowdown, certain segments continue to show resilience. The median sale price for single-family homes registered at $1 million, showing a year-over-year increase of 4.1%. For condos and townhouses, the median price was noted at $690,000, an increase of 2.2% over the previous year.

In a broader context, the U.S. median home price was reported at $362,000 in March, with California’s median hovering at $743,250. In neighboring regions, Los Angeles County displayed stability with a median price of $900,000 and a 5.9% annual increase. Orange County maintained its median at $1.2 million, seeing a 4.3% rise annually.

However, Riverside County observed a 0.8% decrease in median home prices annually to $605,000, while San Bernardino County’s median edged down 0.6% to $526,750, although it still showed a year-over-year increase of 2.3%. Meanwhile, Ventura County’s median price declined by 1.5% month-over-month to $862,000, while it exhibited an annual increase of 2.8%.

Amidst these developments, both buyers and sellers express keen nervousness regarding the current housing market landscape. In recent months, two sellers have backed out of deals due to apprehensions related to capital gains taxes, another factor complicating the market dynamics. Furthermore, a joint statement from the Department of Housing and Urban Development and the Department of the Interior announced intentions to leverage federal land for housing, which may impact the regional market moving forward.

As the San Diego housing market evolves amidst increasing interest rates and shifting availability, stakeholders remain observant of trends that will shape home buying and selling in the upcoming months.