Source: Bankrate —
As we head into the new year, the housing market across the country has started to cool, thanks in large part to the Fed’s continual interest rate increases. Still, though, anyone who’s ever lived in California knows that real estate here is different. And that includes San Diego, one of the most golden areas of the Golden State.
Bolstered by coastal access, great weather and high desirability, the San Diego housing market isn’t likely to crash. A gradual downturn in San Diego real estate is a more likely scenario. If you’re looking to buy or sell in America’s Finest City, here’s a quick overview of what to expect.
San Diego real estate market trends
At the start of 2022, San Diego house prices were on the incline. The National Association of Realtors (NAR) reported that home prices had appreciated by 18.5 percent in the last year and a staggering 46 percent in the last three years. In the first quarter of 2022, the median home price was $905,000, nearly triple nationwide median home prices. (No surprise there — San Diego is a notoriously expensive place to live compared with other locales.)
Turns out springtime was the peak. Often the faster prices climb, the faster they fall, and California was one of the hottest real estate markets. Though not as hard hit as other Golden State cities, San Diego saw a 5.2 percent drop in home prices from their apex in April through September, according to a survey by the American Enterprise Institute’s Housing Center.
While San Diego could still be argued to be a seller’s market, buyers can gain some ground as listings linger longer. In November 2022, Redfin reported that houses here spent 28 days on the market (compare that against 13 days in November 2021).
San Diego house prices are also on the decline. The median sold home price is currently around $830,000 per data from Realtor.com and Redfin. That’s a fair margin below the Realtor.com-reported median list price of nearly $900,000, further indicating the San Diego real estate market’s turn toward a buyer’s market, or at least a more balanced one.
