What’s Happening with the San Diego Real Estate Market?
According to Alan Nevin, Director of Appraisal and Market Research, Vertex, “Business has slowed down slightly. Comparing February 2021 to February 2022, closings were down 11%.”
He states that, “the disappearance of homes and condominiums priced under $500,000 is the major culprit in the decline in sales. In the detached sector, only 3% of homes sold were under $500,000. Notably, however, the sales of homes priced over $1.0 million were up 38%.”
“As usual, the months’ supply of inventory is negligible for both detached and attached housing with barely a half months’ supply of inventory. The inventory of homes for sale has cratered. The attached housing inventory has been halved in the past year.
Similarly new listings in San Diego are off 16% from February 2021. And as might be expected, pending sales have subsided, following the downward path of new listings.
Fortunately, as I pointed out in recent issues of this newsletter, there are numerous new master-planned communities throughout San Diego County that will provide the growing employment base with both single-family detached and attaching housing, much of it at rational prices.
The new housing very often will be acquired by persons moving from other “for sale” housing, allowing the market to free up and provide the inventory needed to bolster an inventory-starved housing market.”