Spring 2021 San Diego Real Estate Update

The real estate market in San Diego, and really throughout the country, showed up in a surprising fashion in 2020. Throughout the COVID-19 pandemic, and amid lockdowns, the market really was a saving grace, especially for sellers. We saw upwards of 10% price increases and record levels of equity growth. The only challenge we faced was excrutiatingly low levels of inventory. In other words, there were not enough homes for sale! And that, along with historically low interest rates, became the story of 2020.

Over the past 5 years, San Diego has seen inventory levels drop from a high of just over 5 months supply of homes, to about 1.5 months. With fewer homes for sale and plenty of buyer demand fueled by 2.5% interest rates, prices have skyrocketed, making this one of the hottest and most competetive markets ever! We are seeing multiple offers, as many as 25-30, per home! And buyers are not messing around as we see them come in tens of thousands over list price, with no contingencies, and even using escalation clauses stating they will pay X amount over the next highest offer.

One thing holds true, however. San Diego real estate is a rock solid investment. As inventory levels have dropped, and remained low, San Diegans have gotten creative as they try to find more ways to drum up inventory and create more opportunity for housing. From ADU’s (aka granny flats) to tiny homes, alternative living spaces have become all the rage. Even local government is on board by streamlining application proceses and waiving fees on approved pre-designed plans. Simply go to the county of San Diego website and select your floorplan that has already been approved for construction and away you go.

At the end of the day there is a reason we call America’s Finest City home. The weather, beaches, and hip urban neighborhoods allow us to explore and recreate in several ways. I mean where else can you surf in the morning, snowboard in the afternoon, and make camp in the desert for the evening? It’s all right here…and we love it! For your customized market report, home value, or a list of the hottest neighborhoods, please visit my real estate site at www.RealBrokerCA.com.