San Diego Real Estate Market Update for the Month of July

The San Diego County real estate market is experiencing significant shifts, from soaring prices to evolving inventory trends and the influence of mortgage rate fluctuations. Stay informed on the latest developments in the housing market landscape, including record-high prices, inventory dynamics, and the delicate balance between supply and demand. Let's delve into the detailed analysis of the current real estate scenario in San Diego.

Record High Prices and Market Dynamics

In San Diego County, both single-family home and condo prices have reached new all-time highs, driven by persistent low inventory levels and strong demand. Despite the impact of higher mortgage rates, the market has sustained robust price growth. The median single-family home price peaked in April, experienced a minor decline in May, and rebounded in June. While prices typically surge during the summer months, some contraction is expected in the near future, supported by dwindling supply levels in the latter half of the year.

Mortgage Rate Impact and Market Resilience

High mortgage rates have tempered both supply and demand in the housing market, with buyers and sellers adapting to rates hovering near 7%. The current rate environment has led to a slowdown in sales activity during what is traditionally a peak season for transactions. While the market may experience some softening due to elevated rates, this adjustment could facilitate inventory growth in a market that has long faced supply constraints.

Inventory Trends and Sales Dynamics

The recent data indicates a decline in single-family home and condo sales and new listings in June, alongside a decline in single-family home inventory. Condo inventory, on the other hand, saw a slight increase. The market has witnessed a shift in inventory patterns, with total inventory stabilizing at a lower level since March 2023. Despite expectations of a seasonal increase in inventory and new listings in early 2024, the market has faced a shortage of new supply, impacting sales volume and market activity.

Months of Supply Inventory Analysis

The Months of Supply Inventory (MSI) metric provides valuable insights into the supply-demand balance in the market. With an MSI indicating a balanced market for both single-family homes and condos, the real estate landscape reflects a harmonious equilibrium between buyers and sellers. The oscillation between buyers' and sellers' markets over the past year underscores the dynamic nature of the San Diego housing market.

Stay tuned for more updates on the evolving real estate trends in San Diego County, as we continue to monitor market developments and provide informed guidance for buyers and sellers navigating the dynamic real estate landscape.