Spring is quickly coming to an end and we are starting to see warmer days- hey I’ll take anything above 65 degrees at this point! Living and working in San Diego for all of my life, I must say this is the first season in a long time that felt so cold and rainy and it affected real estate sales throughout San Diego County.
San Diego home price gains lowest in the nation for 4th month in a row with LA right behind us. Home prices in San Diego County rose 2.1% in a year, down from 6.5% at the same time in 2018. Subdued wage gains and prices going up too quickly over the years have kept many buyers away. Las Vegas and Phoenix areas stand at the top of the list with highest price gains at 8.2% and 6.1%, respectively. The economy as a whole is doing better with mortgage rates hovering around 3-4% (much better than this time last year), unemployment continues to be at an all-time low, inflation is low and wages do continue to rise, yet our real estate market continues to flatten somewhat. Even though we are experiencing a slowdown, home values continue to appreciate and affordability constraints remain in place.
Closed sales decreased 3.8% for detached homes and 2.9% for attached homes. Median Sales Price was up 2.1% to $730,000 for detached homes but decreased 4.2% to $455,000 for attached homes. Days on Market increased 10.7% for detached homes and 61.1% for attached homes.
If you have a current mortgage you intend to keep, you might want to take advantage of the low rates that have transpired over the last few days. Please contact me so I can connect you to Michael at San Diego Funding.
San Diego is home to more than one and a half million people and is the second largest city in California but often gets overlooked behind San Francisco and Los Angeles. Even with the slow down that San Diego is experiencing, I continue to believe our market is one of the best long-term real estate investments. Rents are expected to rise in San Diego to well over 8% in 2019 and 2020 most likely won’t see a cool down. Start thinking about investment properties and how they could help your overall net worth. San Diego real estate is not going away as so many people want to be here and invest their lives here. Not sure where to start? Please contact me, I would be honored to help you.
June 8, 2019