How did the San Diego real estate market fare in 2018, and how will it do this year? Today I’ll show you the numbers.
In 2018, home prices were up in most zip codes, but at reduced levels compared to previous years. Price increases were fueled by high demand and low inventory, but there’s mounting evidence that inventory will increase in 2019. This may add some downward pressure on prices for stressed homebuyers.
Although unemployment rates remained remarkably low, wages haven’t kept pace with the increase in home prices; this created an affordability crux for homebuyers in 2018. Then, a fourth interest rate hike by the Fed spooked the stock market at the end of last year. The Fed has indicated there will be more interest rate hikes to come in 2019, but will it be enough for homebuyers?
Now, let’s talk about the numbers from December 2018:
- Closed sales for detached homes decreased about 20% and dropped a little over 32% for attached homes year over year.
- The number of contracts that went into pending decreased about 4% for detached homes and 13% for attached homes.
- Inventory increased about 29.6% for detached homes and 55.9% for attached homes.
- The median sales price increased about 2.5% to $625,000 for detached homes.
- The average days on market increased from 38 to 39 days.
- Inventory increased to almost two months’ supply of inventory.
As far as this year goes, after taking a pause in the last half of 2018, it looks like the market is moving again, but not as quickly as it did. Housing affordability is going to remain an important issue in 2019.
If you have any questions about the market in your area, feel free to reach out to me. I’d love to hear from you.