Thanksgiving is upon us and as we gather around the table with family and friends, we ponder what makes us thankful. Of course you have the usual suspects like your health, your family, or the bountiful meal in front of you. If you are a homeowner in San Diego, you can add your home.
In October of 2014, the median sales price of a detached home in San Diego county was $490,000. Compare that to October of 2015 and that number has climbed to $525,000. That’s a 7.1% increase in detached home values county-wide. This isn’t the eye-popping, double-digit gains we have seen in recent years past, but is still a healthy increase.
San Diego Housing Inventory Drops
This past week I have been helping clients find a home to purchase. Ideally, it would be a detached home. We are at the middle/end of November, which is one month before the slowest month of the year for real estate sales in San Diego: December. You’d think everyone is focused more on how many people are visiting on Thanksgiving, instead of how many bedrooms will be in their next home. While home searching this past week, it felt like the latter.
Good listings had multiple offers. While the ones that looked good in photos, but disappointed in person had no offers. One reason why it feels like an active real estate market is the fact that housing inventory is slow. I mean really low.
Last year, San Diego experienced a low housing inventory. In October of 2014, the number of detached homes for sale in San Diego county was 6,684. Compare that to October of 2015 and that number has dropped to 5,267. That’s a…
…20.8% decrease in the number of detached homes for sale year-over-year!
When you compare this to the number of homes that are being sold every month, you get the “month supply of inventory”. For example, if there are 10,000 active listings and 1,000 get sold per month, that market has a 10 month supply of inventory. 10,000/1,000=10.
As of last month, San Diego county has a 2.6 month supply of inventory for detached homes. In October of 2014, we had a 3.6 month supply of inventory. That’s a 27.8% decrease.
When you combine limited San Diego housing inventory with strong demand, life gets difficult for home buyers. So if you own a home in San Diego, remember to be thankful that you own. If plan on selling property, be thankful there won’t be much competition.