December 9, 2024

San Diego Home Prices 2017

San Diego Home Prices 2017San Diego County Residential Real Estate Market Analysis: 1st Quarter 2017 ©2017

By Mark A. Melikian California Certified Residential Appraiser appraisals@san.rr.com P.O. Box 3051 Del Mar, California 92014 858-945-8996

The following is a market data summary of detached and attached properties as reported by the San Diego County MLS system. The data includes all zip codes in San Diego County. All projections discussed in this analysis will be updated throughout the year in subsequent quarterly reports.

San Diego Home Prices 2017

Market Overview: The data provided analyzes residential real estate sales beginning in the year 2000, which is used as the base year. The number of sold listings in San Diego County peaked in 2003 at 42,746 units and decreased through 2008 to 23,972 units. Based on data from the first quarter of 2017, the projected total number of units sold for the year will be 29,128, down from 36,236 sales in 2016 (see Figure 1).

San Diego Home Prices 2017

Market Overview: The monthly absorption rate (number of units sold in a given month) will mirror the trend we see in the number of sold listings. The peak monthly absorption rate occurred in 2003 with 3,562 units selling per month. In 2008, the monthly absorption rate decreased to a low of 1,998 units. Based on data from the first quarter of 2017, the projected monthly absorption rate for the year will be 2,427 units, down from 3,020 units in 2016 (see Figure 2)

San Diego Home Prices 2017

Market Overview: Based on data from the first quarter of 2017, the mean sold price for a housing unit in San Diego County is currently at $714,826. This would surpass the previous peak, established last year at $646,201 (see Figure 3).

San Diego Home Prices 2017

Market Overview: The mean number of days a property was on the market in San Diego County was 35 in 2015. In 2011, that number peaked at 79 days on market. Based on data from the first quarter of 2017, the projected mean number of days will be 35, equal to last year’s mean number of days (see Figure 4).

San Diego Home Prices 2017

Detached Housing Market Specifics – 1st Quarter 2016 compared with 1st Quarter 2017: Detached home sales data for the 1st quarter of 2017 shows the highest number of sales were in the $400,000-$500,000 price range (1,211 units). The highest number of sales for the 1st quarter of 2016 were in the same $400,000-$500,000 price range (1,219 units – see Figure 5).

San Diego Home Prices 2017
Attached Housing Market Specifics – 1st Quarter 2016 compared with 1st Quarter 2017: Attached home sales data for the 1st quarter of 2017 shows the highest number of sales were in the $300,000-$400,000 price range (697 units). The highest number of sales for the 1st quarter of 2016 were in the same $300,000- $400,000 price range (700 units – see Figure 6).

San Diego Home Prices 2017Detached and Attached Housing Market Specifics – 1st Quarter 2017 Housing Supply: Normal residential real estate markets typically have a four to six-month supply of housing inventory. Based on 1st quarter 2017 absorption rates, current supply levels for detached properties are at, or below, normal market levels in all price ranges except in the $1,500,000 plus price range. Current supply levels for attached properties are also at, or below, normal market levels in all price ranges in all price ranges except in the $1,500,000 plus price range. (see Figure 7).

San Diego Home Prices 2017

San Diego Home Prices 2017

Comments and Outlook: Based on data from the first quarter of 2017 in the San Diego County housing market, sales prices will increase (at the current pace, the year over year price increase would be 10.6 percent). Sales volume and absorption rates will decrease and days on market will remain the same. (See Figures 1, 2, 3 and 4).

Inventory levels continue to decrease across all price ranges and property types. This will likely lead to the reduced sales volume and further price increases, as noted above.

The highest concentration of detached housing sales continues to be inventory priced below $500,000 (see Figure 5). Similarly, the highest concentration of attached housing sales continues to be inventory priced below $500,000 (see Figure 6). Most sales activity continues to remain in these relatively lower price ranges, which is largely comprised of entry level housing in San Diego County.

Housing supply is below normal levels in most price ranges which will likely continue a competitive environment for buyers during the second quarter of 2017, assuming interest rates remain relatively constant. Many real estate professionals continue to report multiple offers on entry level listings with a continuation of a two-tiered market: Multiple offers are being reported on fixer properties which have the potential for renovation and resale. Multiple offers are also being reported on renovated houses that are priced competitively. Subsequent reports will continue to analyze the trends in local housing supplies, sales volume, and sales prices.

 

 

San Diego Home Prices 2017

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