News Summary
San Diego County is experiencing a rise in home sales, reporting a 3.8% increase in July, contrary to California’s overall decline in real estate activity. While the state saw a 1% decrease in closed sales, San Diego’s median sale price for single-family homes reached $1.040 million. This uptick in sales is attributed to a drop in mortgage rates, motivating more buyers despite prior hesitance due to fluctuating market conditions and high interest rates.
San Diego County Sees Rise in Home Sales Amid Statewide Decline
San Diego County reported a positive trend in home sales for July, marking an increase while California as a whole faced a decline in real estate activity. The California Association of Realtors (CAR) disclosed these findings on Tuesday, providing a comprehensive look at the market’s current situation.
California Home Sales Statistics
In July, California’s closed escrow sales for existing, single-family detached homes totaled a seasonally adjusted annualized rate of 261,820. This represented a 1% decrease from June’s annualized rate of 264,400 and a 4.1% drop compared to July 2022, when the figure stood at 272,990. The annualized rate reflects the expected total number of homes sold throughout 2025 if sales continue at July’s pace.
San Diego County Sales Performance
In contrast, San Diego County experienced a 3.8% rise in sales from the previous month to reach 2,384 home sales. However, there was a notable 6.5% decline from sales in July 2022. The median sale price for an existing single-family home in the county rose to $1.040 million in July, a slight increase from $1.025 million in June and $1.020 million from a year prior.
Statewide Price Trends
Across California, the median home price in July was reported at $884,050, which reflects a 1.7% decrease from June and a marginal 0.3% dip from $886,420 in July 2022. This situation indicates a modest slowdown in both sales and prices, attributed to buyers’ hesitance in the face of a fluctuating economy and market.
Factors Impacting the Market
One contributing factor to increasing sales in San Diego County has been the recent decline in mortgage rates, now at their lowest levels since October. This fall has prompted an uptick in purchase applications. Yet, previous months saw a significant decline in sales, with a 23% drop reported, representing the lowest sales levels since 2007, fueled by high mortgage rates and sellers’ reluctance to adjust asking prices.
Market Conditions and Challenges
In addition to rising sale prices, the median days a home spent on the market in San Diego increased to 25 days from 16 days the previous year, suggesting fewer rapid transactions. The number of homes listed for sale also rose sharply to approximately 6,800, well above figures from preceding years.
The Bigger Picture
Despite variations in sales activity, property values in San Diego County have generally trended upward over the past 30 years, with occasional declines during economic downturns. In July 2023, the assessed property value in the county reached a record $806 billion, reflecting a 4.95% increase from the previous year. Measures such as Proposition 13 have played a critical role in stabilizing property tax costs and funding essential regional services.
San Diego’s Market Position
Amidst these trends, San Diego continues to be ranked as the 10th most unaffordable metro area for homebuyers globally, comparable to cities like Hong Kong and Sydney. Other California locations, including Los Angeles and San Francisco, also feature prominently on the list of least affordable housing markets, indicating broader challenges within the state’s real estate landscape.
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Additional Resources
- CBS 8 News
- Wikipedia: San Diego
- MSN Money
- Google Search: San Diego real estate market
- San Diego Union Tribune
- Google Scholar: San Diego housing market
- Times of San Diego
- Encyclopedia Britannica: real estate
Author: STAFF HERE SAN DIEGO WRITER
SAN DIEGO STAFF WRITER The SAN DIEGO STAFF WRITER represents the experienced team at HERESanDiego.com, your go-to source for actionable local news and information in San Diego, San Diego County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Comic-Con International, San Diego County Fair, and San Diego Pride Festival. Our coverage extends to key organizations like the San Diego Regional Chamber of Commerce and United Way of San Diego County, plus leading businesses in biotechnology, healthcare, and technology that power the local economy such as Qualcomm, Illumina, and Scripps Health. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECostaMesa.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
