San Diego Real Estate Market Still HOT Under $1.25m - Luxury Market Projected to Take a Hit.
I attended a virtual meeting hosted by the Greater San Diego Association of REALTORS last week featuring Mr. Alan Nevin, Director of Economic and Market Research at Xpera Group. Mr. Nevin has an extensive background in real estate economics, lending and market analysis and is one of San Diego's leading authorities on local economics and the San Diego Real Estate Market.
As I indicated in previous blogs, the last three weeks of March continued to produce a surprising amount of new listings and purchases despite the COVID-19 restrictions. The chart above shows prices remained above those of last March.
As you can see below, COVID-19 had some impact on the total number of single family detached sales which fell by about 100 homes compared to last year. Attached homes, however, actually exceeded those sold in March of 2019.
The bulk of the activity has been occurring in the under $1m price point, and $600k and below market is on fire, continuing to draw multiple offers and shorter market time.
Mr. Nevin noted several times that while the coronavirus will impact the overall spring sales season, pent up demand will drive the market forward later in the year. San Diego continues to have a shortage of inventory. As sellers feel it is safe to list their homes again, we will see the residential market rebound well overall.
Unfortunately, the luxury market is projected to take a bigger hit, and he anticipates the over $1.25m market to lag in the rebound with average market time increasing significantly.
In summary, Mr. Nevin confirmed COVID-19 had a strong impact on what this spring season was supposed to be given demand, low interest rates and consumer confidence, however when comparing it to the previous year, sales are holding up exceptionally well given the situation. Buyer demand remains strong but many will sit on the sidelines until summer or fall. Once that occurs, we will potentially see our spring season happen in the fall this year.
More to come through the week. Meanwhile, stay safe and have a great day.