After a slight downturn last fall, the San Diego market continues to look strong.
As of July 2015, the average detached home in San Diego county sold for $570,000.
As of July 2015, the average attached home (including condos, townhomes, and twinhomes) in San Diego county sold for $360,000.
The average detached home in San Diego spent just 36 days on the market.
Condos, twinhomes, and townhomes in San Diego spent 35 days on the market, on average.
By now, you’ve probably heard the term “Seller’s Market” thrown around a lot to describe the San Diego Real Estate market. But how exactly do we know that? By evaluating the ratio of sales price to list price, we can determine whether the market is more favorable for buyers or sellers. The closer that ratio moves to 100, the more negotiating power the seller has to get their asking price. As that ratio moves away from 100, the more opportunity we see that a buyer has to negotiate on the price. Perhaps that means the home has been sitting on the market too long. Or maybe there are too many similarly priced properties on the market. If a seller can’t afford to wait for the price they want, they will have to make some concessions to the buyer…usually in the form of price.
So, as of July 2015, what kind of market are we in? In examining the data for all of San Diego County, we discover that we are still in a seller’s market, though the direction of the graph indicates that we may be moving towards a buyer’s market. On average, a seller of a detached home in San Diego County, receives 97% of the original list price at the close of sale.
As of July 2015, the owners of attached properties (condos, twinhomes, and townhomes) had slightly more negotiating power: they received 97.3% of the original list price at the close of sale. This graph also indicated a slight shift towards a buyer’s market.
Finally, San Diego County overall is very low in inventory. This is due to a couple of factors:
- some people feel their homes are still appreciating and are waiting to make further gains
- some people are still underwater on their homes, meaning they owe more on the loan than the home is worth. This is improving, though.
- some people are looking to move up, but feel that the market is pricing them out, so they’re waiting for prices to fall so they can afford to move up.
The inventory of homes in San Diego County is starting to increase overall.
Meanwhile, the supply of attached properties continues to decline.
Are you interested in seeing this breakdown for your San Diego community or zipcode? Let us know!