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Sunday, Apr 21, 2024

Home Prices Rising, Still Well Below Peak

REAL ESTATE: Single-Family Home Median Price 15% Higher YOY in January

SAN DIEGO COUNTY – Single-family home prices edged up in January, with the median price 15% higher than in January 2023, according to the Greater San Diego Association of Realtors.

The increase brings the median price of a single-family home to $980,000, getting a bit closer to the peak of $1,025,000 reached in August 2023.

A year ago, the median price of a single-family home was pegged at $849,000.

The median price of attached homes – condos, townhomes and multiplexes – was $650,000 in January, up from $590,000 in January 2023.

Spencer Lugash
Greater San Diego Association of Realtors

Association President Spencer Lugash said that he expects home prices to continue an upward trend.

“Personally, I can say from my own personal brokerage and from what I hear, things are picking up a little bit,” Lugash said.

He was reluctant to make any predictions on when or if the median price of a single-family home would again top $1 million in San Diego County.

“I’m hesitant to say that by next August, we’ll be back over a million,” Lugash said.

A spike in prices might be good news for people who already own a home, but Lugash said that “It’s not the healthiest thing for a housing environment. Slow and steady is the best way to go.”

“What we really want is a balanced market that people can get into,” Lugash said.

Low Inventory

Nationally, the median price for an existing single-family home was $382,600 in January, according to the National Association of Realtors.

In California, the statewide median home price was $788,940, down 3.8% from December and up 5% from $751,700 in January 2023, according to the California Association of Realtors.

The 30-year, fixed-mortgage interest rate averaged 6.64% in January, the state association reported, up from 6.27% in January 2023, based on Freddie Mac’s weekly mortgage survey data.

Historically, when prices rise, the inventory of homes for sale increases, but the number of homes on the market in San Diego County remained low at 1,612 homes in January 2024 compared to 1,978 in January 2023, as people sat tight holding onto mortgages with interest rates well below what they are this year.

“I don’t expect a high influx of properties coming on the market. I hope I’m wrong to some extent,” Lugash said. “I think we’ll see a trickle.”

Active listings statewide dipped again in January on a year-over-year basis for the 10th straight month in January, but the decline was the smallest, a sign that active listings might be heading in the right direction as the market approaches the spring homebuying season, the California Association of Realtors reported.

The number of attached homes for sale rose in January to 1,038 compared to 987 a year ago, according to the association.

“I think that just speaks to the (housing) affordability in San Diego County,” Lugash said. “Things are so expensive, those are the kinds of properties people can get into.”


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