San Diego September Housing Market Update

The San Diego County housing market continues to navigate a complex landscape, with high prices, limited inventory, and a persistent seller's market.  Let's delve into the latest market data for August 2024 and analyze the key factors shaping the current real estate environment.

Price Trends: Record Highs and Potential Contraction

Single-family home prices in San Diego County reached a record high in June 2024, hitting $1,054,180.  Despite elevated mortgage rates, high demand and persistently low inventory have continued to push prices higher.  While prices typically peak in the summer months, some minor price contraction is expected in the coming months.  However, with limited inventory, prices are likely to remain supported as supply declines in the second half of the year.

Inventory and Sales Activity: A Tight Market

The San Diego housing market continues to be characterized by low inventory levels, which has been a contributing factor to the strong price performance.  While high mortgage rates have slowed the market, they haven't significantly impacted the sticker prices of homes.  

Months of Supply Inventory: A Seller's Market

The Months of Supply Inventory (MSI) metric, which measures the time it would take for all current listings to sell at the current sales rate, provides a valuable indicator of the supply-demand balance.  In August 2024, the MSI remained below three months, indicating a seller's market.  This trend has persisted since October 2022, with an average MSI of 2.5 months for the year.  While the MSI may drift slightly upward in the winter months, it's expected to remain below three months for the remainder of 2024.

Navigating the San Diego Housing Market

The San Diego housing market continues to be a seller's market, with high prices and limited inventory.  While mortgage rates have softened demand, they haven't significantly impacted price growth.  Buyers seeking to enter the market should be prepared for competition and potentially higher prices.  Sellers, on the other hand, can benefit from strong demand and a favorable market environment.  Stay informed about market trends and consult with a real estate professional to make informed decisions and navigate the San Diego housing market effectively.