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Tuesday, Jun 25, 2024

$1M Homes Now Norm

REAL ESTATE: Single-Family Home Prices Expected to Stabilize or Continue Rising

SAN DIEGO COUNTY – San Diego home prices edged ever higher in April, with the median price of existing single-family home $1.1 million, according to the Greater San Diego Association of Realtors, as interest rates for home mortgages dropped slightly and more homes were put up for sale. 

In February, the median price for a single-family home was $1,043,900, topping $1 million for the first time since August 2023, when it was $1,025,000, according to the association. 

A year ago, the median price for a single-family home was $950,000, according to the Greater San Diego Association of Realtors. 

The median price for an attached home – condominiums, townhomes and multiplexes – was $685,000 compared to $642,510 in April 2023. 

Nationally, the median price of an existing single-family home was $393,500 in April, according to the National Association of Realtors, a 4.8% increase from March. 

Valerie Upham

“I believe we’re going to continue to see prices rise. It’s going to be at a much slower pace,” said Valerie Upham, a real estate agent with Compass in San Diego. “It’s probably going to be 3.5% to 5.5%, which is a normal market for appreciation.” 

Mike Safiedine, a broker/owner at RE/MAX Connections, said that he expects home prices “stabilizing, if not going a little bit higher.” 

“I don’t see prices falling,” Safiedine said. “If interest rates go down, we’re going to see a surplus of buyers where there are multiple offers taking place.” 

Mike Safiedine
RE/MAX Connections

As of late May, the interest rate for a 30-year fixed-rate mortgage was just under 7%. 

“They’re not coming down enough,” Upham said. “Buyers are really looking for low 6% to high 5%,” Upham said.  

Safiedine said that people were spoiled by interest rates that were 3% or less two or three years ago. 

“People are starting to realize we’re not going to see those rates for a long time,” Safiedine said. 

A Seller’s Market 

Some good news for buyers comes with a slight uptick in the inventory of resale single-family homes on the market, rising from 1,756 in April to 2023 to 2,084 in April 2024, according to the Association of Realtors. 

The number of attached homes up for sale was 1,280 in April 2024 compared to 775 a year ago. 

“We still have a low, very low inventory,” Upham said, adding that she doesn’t expect a big change in inventory until interest rates drop. 

“It’s still a seller’s market,” Upham said. 

Still, as the inventory increases, homes are selling slightly faster, with single-family homes selling within 26 days versus 29 days a year ago and attached homes in April selling within 28 days compared to 31 days last year. 

Greater San Diego Association of Realtors
Founded: 1905
Headquarters: Kearny Mesa
President: Spencer Lugash
Business: real estate industry organization
Members: 2,000+
Website:  www.sdar.com
Contact: 858-715-8000
Notable:  The Greater San Diego Association traces its roots to 1878, when the real estate board of San Diego was organized by Cyrus Arnold. A new board, the San Diego Realty Board, was formed in 1905 with Percy H. Goodwin as its first president. 


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