October 2021 - San Diego Real Estate Market Update
SAN DIEGO REAL ESTATE MARKET UPDATE: OCTOBER 2021
Believe it or not, the holiday season is officially upon us! As we wrap up 2021 and look forward to 2022, my hope for you is for time to rest, recharge, spend time with loved ones and plan for a successful and fulfilling year ahead. If your 2022 plans include buying or selling property, I would love to have a conversation with you to help you put together an effective plan to do so. Give me a call or shoot me an email anytime.
The California Association of Realtors (C.A.R.) recently released their Monthly Resale Housing Report which, as we’re nearing the end of the year, included many predictions for the state of the 2022 California housing market.
Here are some key takeaways from the full report:
Median prices in all of the major regions continued to grow on a year-over-year basis, with Southern California growing 15%
Market competitiveness cooled down slightly in September as both sales growth and price growth slowed in September. While the state median sales-price-to-list-price ratio remained above the 100 percent benchmark at the end of the third quarter, it was the lowest level in seven months. Six out of ten homes (62.2 percent) still sold above asking price in the latest monthly report, but it was also the lowest level since February 2021.
"As we move into the off-homebuying season, we should see market competition easing and home prices moderating, giving those who waited out the highly competitive market earlier this year an opportunity to revisit buying," said C.A.R. President Dave Walsh. "Interest rates are expected to remain low and the availability of homes for sale should improve, which should boost homebuying interest and spur sales."
After setting another record in August, California's median home price declined to $808,890, down 2.3 percent from $827,940 in August. The September price was 13.5 percent higher than the $712,430 recorded last September. The median price in California remained above the $800,000 benchmark for the sixth consecutive month but the double-digit price year-over-year price gain was the smallest in 14 months.
A change in the mix of sales, once again, played a role in the change in the statewide median price, as the sales share of million-dollar continued to shrink on a month-to-month basis, and prices in the high-end market have been growing at a slower pace than the low-end market in the past two months.
"With the economic recovery remaining on course but progressing at a pace slower than anticipated, rates are expected to rise modestly in the next few months but will remain low," said C.A.R. Vice President and Chief Economist Jordan Levine. "While statewide home sales are expected to dip slightly next year according to our latest forecast, housing demand will remain solid and post the second highest level of sales in the past five years. The market will stay competitive in 2022 as the normalization continues, and home prices will remain elevated," said Levine.
As always, we will be here to continue to provide you with updates about the housing market and answer any and all of your questions. Feel free to reach out to us anytime.
Note: The County MLS median price and sales data in the tables are generated from a survey of more than 90 associations of REALTORS® throughout the state and represent statistics of existing single-family detached homes only. County sales data are not adjusted to account for seasonal factors that can influence home sales. Movements in sales prices should not be interpreted as changes in the cost of a standard home. The median price is where half sold for more and half sold for less; medians are more typical than average prices, which are skewed by a relatively small share of transactions at either the lower end or the upper end. Median prices can be influenced by changes in cost, as well as changes in the characteristics and the size of homes sold. The change in median prices should not be construed as actual price changes in specific homes.
HOMEOWNER RESOURCES:
FUTURE HOME BUYER RESOURCES: