San Diego County Market Glance – May 2019

June 25, 2019

Similar to previous months, the San Diego County market finished May in a state of flux. The market saw drops in sales, a slowing sales pace and gains in inventory and listing discount despite a healthy bump in home prices. Going into the summer sales season, San Diego is an interesting market to track as it is defying traditional economic principles of supply and demand. However, with more homebuyers traditionally looking to make their move in the summer, the impact on home prices by the flood of inventory could be reduced. The peripheral statistics of sales pace and listing discount hint that some price regression is in store, but we will have to see how things shake out in the coming months. Either way, home sellers should be realistic with their expectations if they wish to cash in during prime house-hunting season.

There were 3,208 properties that changed hands in San Diego County in May, a 6.9% drop from the same month last year. Additionally, the closed sales volume finished 3.5% lower, coming in at $2,302,876,000. Despite the drops in activity, the average closed sale price increased by 3.6% to $717,900. The average price per square foot also saw a slight increase (1.1%), finishing at $398.30. Inventory levels shot up by 14.3% to 6,740 units. The sales pace slowed, finishing at 29 days on average, representing a 20.8% increase compared to last May. The listing discount (sold price versus list price) came in at 97.9%, a 0.2% drop. Overall, the market has 2.1 months of inventory to meet demand, a 23.5% increase over last year.

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