The new year has begun, and with it comes many people who have made buying a home in San Diego or selling a home part of their 2021 resolutions. While ongoing unemployment claims + 52.6% + 8.4% remain elevated due to COVID-19, they are substantially lower than what they were during their peak and have had little effect on buyer demand thus far.
January 2021 is a Seller’s market! The number of for sale listings was down 56.9% from one year earlier. The property type with the smallest decline was the Condos – Townhomes segment, where they decreased 48.7 percent. That amounts to 0.7 months supply for Single-Family homes and 0.9 months supply for Condos.
This degree of inventory decline is abnormal and it’s happening in many other California regions. We believe it is simply the natural result of the reluctance of homeowners to list their homes during a pandemic and does not represent a true reduction in the number of people wanting to sell their homes.
The Median Sales Price was up 11.9 percent to $744,000 for Detached homes and 11.5 percent to $485,000 for Attached homes. Days on Market decreased 40.9 percent for Detached homes and 23.1 percent for Attached homes. Supply decreased 63.2 percent for Detached homes and 52.6 percent for Attached homes.
The San Diego housing market received the strongest forecast from the real estate research team at Zillow (among this group of counties). In January 2021, the company predicted that home values in San Diego County would climb by 11.4% over the next year.
What Record-Low Housing Inventory Means for You
If You’re a Buyer:
- be ready to move forward quickly. Get pre-approved for a mortgage, be prepared to make a competitive offer from the start, and know that a shortage in inventory could mean you’ll enter a bidding war.
- Calculate just how far you’re willing to go to secure a home and lean on your San Diego Real Estate Agents as an expert guide along the way.
If You’re a Buyer:
- If you’re on the fence about selling your San Diego house, now is a great time to take advantage of sky-high demand, low supply, and fierce buyer competition.
- With buyer demand rising and historically low inventory for sale, if you’re in a position to move, your house may really stand out from the crowd.