Buying and Selling in San Diego County During SiP
If you were planning to put your house on the market in 2020 or beyond or considering purchasing a new home, the coronavirus (COVID-19) pandemic has likely given you pause. Is now a good time? Can I protect myself and my family from the virus? And assuming you proceed, what changes can you expect with regard to the usual past procedures and practices here in San Diego County? Read More..
San Diego County April Market Analysis
San Diego County’s median home price continued to rise in March to $680,000 and stayed steady at that number in April, reflecting optimism in the home market before the coronavirus crisis. Low mortgage interest rates, almost a point lower than last year, partnered with high demand and low inventory for homes in the area were contributing factors. There were 2,809 home sales in April, a 31% percent drop from the same time last year however the median price at $680,000 was up 4.4 percent year over year, nearing record highs!
Now let's talk about March! Rumors of coming restrictions due to COVID-19 in early March were followed by a California statewide Shelter In place (SIP) order on March 19th . While the stock market recovered significantly in March, the effects of COVID- 19 to the economy continue to be felt. In just the last 8 weeks weeks, more than 30 million people filed initial unemployment claims according to the United States Department of Labor, fueled by the stay at home orders and a slowdown of economic activity across the country. In the face of these challenging times, real estate activity in April slowed a bit.
In the last few weeks, we started to see the number of sold listings drop by almost 31% and inventory has dropped by about 38% year over year. This is not an unexpected trend since most escrows are 30 days which means the March/April numbers were still high from escrows entered in February/March. Pending sales in the San Diego were also down 1.2 percent overall however homes in the $1,250,001 to $2,000,000 range saw large gains with an 7.3 percent increase. The final numbers from May will start to really give us a glimpse of how COVID-19 and California's shelter-in-place order has affected the local market.
While we have seen some potential buyers pulling back from home searches in March/April, as well as clients walking away from home purchases close to closing, it was not as prevalent as expected. With a lot of buyers out there still wanting to purchase a home in the next few months it will be interesting to see how May numbers look.
While the effect of COVID-19 continues to vary widely across the country, it is expected that social distancing, higher unemployment, and lower overall economic activity is likely to continue to constrain real estate activity in the near term. At the same time, the industry is adapting to the current environment by conducting business using technologies such as virtual showings and e-signing to help buyers and sellers with their housing needs in the face of these challenges.
Making It In San Diego
If you are wondering what the HOT areas of San Diego are, below I list the top 20 zip codes for San Diego County by Median Sale Price and Year over Year growth. With over 181 zip codes and 4,207 sq miles of total land area there are housing options in every price range.
Del Mar At A Glance
When the rich and famous need a vacation, where do they go? They go to Del Mar! Del Mar is a small coastal city in northern San Diego County and about an hour and a half south of Los Angeles. With under 4,500 residents, it’s a big change from the hustle and bustle of city life. Visitors and residents love Del Mar because they can finally slow down and enjoy California for what it is: paradise.
Del Mar is popular for its peaceful ambiance, historic downtown, scenic landscapes, thoroughbred racing, and Read More..
