Median home price increases yet again last month

And just like clockwork, the median home price increased again last month. 

Despite a year over year 37% increase in inventory, elevated mortgage rates in the mid 6’s, a 31% increase in days-on-market, a 13% increase in new listings, and a 33% increase in months of supply, the median home price still ticked up 10% year over year to $1,050,000 for detached properties in San Diego County. 

Looking at the last 12 years of data, the median home price in San Diego County has risen in a near perfect linear fashion. I predicted a slowdown this year, but prices have continued rising even with a slight slowdown in overall sales activity. In 2012, the median home price with just $390,000 and has steadily risen ever since. 

With the election in just a couple weeks, it does seem we are in a slight activity slowdown as some buyers and sellers have taken a wait-and-see approach with my own clients pausing and with some other Realtors I know finding the same.  But that does present some better opportunities for buyers with less competition for properties currently and more inventory to choose from. I am aware of some sellers holding off until early 2025 for listing their property. I suppose 2025 will be another busy year for San Diego real estate sales. 

The California insurance market remains challenging. 

In the past, obtaining insurance was a bit of an afterthought during the escrow period. I would remind my buyers that they need to choose a homeowner’s insurance provider with some using AAA, USAA, Costco, their car insurance provider, etc. But today is a different story. Sometimes a preferred provider does not offer insurance on a property, or the price to place the insurance is unusually high. 

Properties near high-fire zones can be difficult to place in San Diego County. Also, older condo buildings can be somewhat challenging. Insurance rates have greatly risen as you have probably noticed if you currently have homeowners or auto insurance. 

When working with a buyer we typically check insurance availability and prices prior to going into escrow or just after. Many insurance providers have left the California marketplace contributing to elevated prices. For the most difficult properties, typically in unincorporated areas of the county, the state government has set up a last chance insurance exchange but as expected, it is pricey. 

On a personal note, I just tied the knot with my long-term fiancé DJ in a wonderful ceremony at a beautiful venue downtown. We recently purchased a fixer in UC and are looking forward to a bright future together! If you are thinking of buying or selling in the next 12 months, feel free to give me a call to chat and discuss your potential options.

MARKET REPORT (Single Family): College Area (92115): median price up 3% year over year to $940,000 with 45 homes for sale, inventory up 37%. San Carlos (92119): median price up 16% to $1,115,000 with 32 homes for sale, up 89%. Del Cerro/Allied Gardens (92120): median price up 10% to $1,050,000 with 26 homes for sale, up 4% year over year. 

– Sarah Ward is a REALTOR with Fine & Coastal. Reach her at: sarah@fineandcoastal.com.

Photo credit: Pixabay.com