Hot Real Estate Market in 2020
Hot Real Estate Market with Low Inventory for 2020 in San Diego County
From the looks of the real estate market in late 2019 and early 2020 the market is going to be very busy this year. There are lots of buyers and not enough homes in San Diego for sale which is an indication of a seller’s market and lots of competition for buyers. My advice is to get out there early and start looking now while interest rates are low, come spring and summer the completion from other buyers may push the market into a feeding frenzy.
Here are the latest statistics of the San Diego market from December 2019.
In 2019 home prices were up again in most markets. Buyer demand continues to be strong but with lukewarm seller activity still in many locations, total sales are lower than they would normally be in a more balanced market. While up from their recent lows a few months ago, mortgage rates end the year close to three-quarters of a percent lower than a year ago, helping to improve affordability and offset rising home prices.
Closed Sales increased 7.7 percent for detached homes and 33.9 percent for attached homes. Pending Sales increased 11.6 percent for detached homes and 26.5 percent for attached homes. Inventory decreased 40.1 percent for detached homes and 26.6 percent for attached homes. The Median Sales Price was up 6.7 percent to $665,000 for detached homes and 6.2 percent to $440,000 for attached homes. Days on Market decreased 12.5 percent for detached homes and 10.5 percent for attached homes.
Supply decreased 41.7 percent for detached homes and 28.6 percent for attached homes. If you look at the chart and look at the monthly data highlighted with green you will see that there were large numbers of inventory in the beginning of the year in 2019 and month after month they inventory shriveled up. The number of homes on the market going into 2020 is at anemic levels. There are 1.4 months of inventory for detached homes and 1.5 months inventory for attached homes.
With low mortgage rates, low unemployment, and continued wage growth, home buyer activity is expected to remain healthy into the New Year. New home construction in San Diego County has been on the rise in 2019 and is expected to continue into 2020, but many experts note that the country is still not building enough new units to quench demand. It remains to be seen whether existing homeowners will be enticed to sell by higher home prices in San Diego, which could finally bring the overall housing market into greater balance.
So far the first 22 days of 2020 have been very busy and if these first 3 weeks are any indication of what the San Diego real estate market will be like in 2020 we are in for a busy year. In an election year we will usually see some slowing down of real estate transactions due to the uneasiness of the election cycle. I think with the Trump impeachment being in the headlines for so long and the fact that it’s just about over the general public is getting more and more immune to headline news, especially politics, affecting their real estate goals.
Interested in buying a home or selling a home in 2020?
The Lewis Team San Diego Real Estate Experts!