The San Diego real estate market was ranked as the fifth “hottest” market in January according to a report from Realtor.com. On average, a home in San Diego is on the market for 53 days. This is a big difference than the national average of 88 days.
Sure, January is typically a slow season for real estate but Realtor.com reports that the first month of the year is already off to a good start.
According to Jonathan Smoke, chief economist for Realtor.com, “Since the election demand seems to have intensified — potentially as a reaction to mortgage rates rapidly moving higher. The threat of rates approaching multi-year highs in the months ahead is creating a sense of urgency.”
The San Diego Union-Tribune reports that San Diego has seen a lot of growth in the last year: “Adjusted for seasonal variation, the San Diego regional index of home prices was up 5.8 percent in November compared to a year ago. The nationwide increase was 5.6 percent, setting an all-time high in three consecutive months.
To put that into perspective, the Los Angeles index rose by 5.5 percent and in San Francisco, it rose by 5.3 percent.
Our City San Diego, “At the start of year, the median sales price in San Diego reached $490,000 – a substantial increase compared to the month prior when the median sales price was $475,000. Despite the traditionally bustling Spring home buying season, median prices in April fell back to $475,000. However, reduced price tags didn’t last for long. Fast forward to August, and home sales reached an annual median peak price of $515,000. Overall, San Diego house hunters in the latter part of 2016 faced a higher barrier of entry compared to the tail end of 2015. Between September 29 to December 28, the median sales price in San Diego mirrored the August median at $515,000 based on nearly 3,000 home sales. Trulia’s housing market trends confirms a 6 percent year-over-year rise in median sales price.”
Svenja Gudell, chief economist for Zillow, reported in a statement that rent growth in San Diego may have an impact on the market: “Slower rental growth may take some of the heat off those renters thinking of buying just to escape the volatility of steep annual rent hikes, potentially leading to a softening in demand.”
Other top hot markets in California according to Realtor.com are Sacramento, CA, Yuba City, CA, Stockton, CA, and Fresno, CA.