News Summary
The median home price in San Diego County has reached $900,000, showing a 1.1% increase from the previous month and a 2.7% rise year-over-year. Despite this rise, sales have declined by 3.8% compared to last year. Concurrently, inventory levels have risen to approximately 4,900 homes, yet the average time to sell has increased. Economic factors, including rising mortgage rates, are contributing to buyer hesitance, positioning San Diego’s housing market as increasingly challenging for potential homeowners.
San Diego – The median home price in San Diego County has risen modestly to $900,000 as of March, reflecting a 1.1% increase from February 2024 and a 2.7% increase year-over-year. However, despite this slight increase in prices, the region continues to face sluggish sales and growing economic concerns.
The total number of closed home transactions recorded in March was 2,189, which marked a 3.8% decline from the same period last year, although it showed a notable 8.2% increase from February of this year. This indicates a mixed market environment where fewer properties are being sold even as the median prices see a gradual rise.
Inventory levels have also shown growth, with approximately 4,900 homes available for sale in March, up from 3,800 homes a year earlier. However, even with the increase in the number of homes on the market, buyers are proving hesitant, as evidenced by the average time for a home to sell, which increased to a median of 25 days in March from 22.5 days in late January.
The rise in mortgage rates has been a significant factor affecting buyer behavior. The average interest rate for a 30-year fixed-rate mortgage was 6.65% at the end of March, which subsequently rose to 6.81%. For potential buyers with a 20% down payment, this rate translates into a monthly payment of about $4,997, approximately double the average rent in San Diego County. This financial burden is contributing to the general decrease in buyer interest amid recession fears and uncertainties surrounding economic conditions.
In the single-family home sector, the median sale price reached $1 million, reflecting a 4.1% increase compared to the previous year. In contrast, condos and townhouses experienced a smaller 2.2% increase, with a median price of $690,000.
Regionally, San Diego’s housing prices remain among the highest in the state and the nation. The median home price in California stands at $743,250, while the national median home price was reported at $362,000 in March. Other counties in California are also grappling with varied price trends: Los Angeles County is at $900,000, Orange County at $1.2 million, Riverside County at $605,000, San Bernardino County at $526,750, and Ventura County at $862,000.
This increase in housing inventory coupled with a decrease in sales has led experts to suggest a potential turning point in the San Diego housing market, causing concerns among buyers and sellers alike. Economic factors, including worries about capital gains taxes, have heightened the anxiety surrounding real estate investment.
Federal initiatives to reduce housing costs have included proposals for the potential rezoning of federal lands, which may provide some relief in the long term. Nonetheless, for current buyers in San Diego, the prospect of owning a home remains an increasingly challenging endeavor, with the region being noted as the fourth most expensive housing market in the United States. The income required to afford the median home price is estimated to be over $258,000, underscoring the financial strains facing many individuals and families.
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Additional Resources
- San Diego Union Tribune
- Wikipedia: San Diego
- Realtor.com
- Encyclopedia Britannica: San Diego
- NBC San Diego
- Google Search: San Diego Housing Market
- CBS8
- Google News: San Diego 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.
