San Diego real estate market statistics for November 2021 include home prices, inventory, and days on market. Reporting comes from the MLS.
According to the latest San Diego real estate market update for November 2021, the inventory of single-family homes in San Diego County has dropped 41% since last June and the median sale price of single-family homes has jumped up to a median home price of $767,000, a 26.7% increase year-over-year! This winter is still the opportune time to put your San Diego home up for sale with limited supply and hot buyer demand. If you want to secure a low-interest rate on your next home so you can afford your dream home or location – now’s the time to act!
Check out the full San Diego report below to find out the pricing and inventory trends in your area.
San Diego Housing Market Trends For November
- Inventory: With only 2,153 single-family homes for sale on the market in November, inventory has dropped over 40% over the last six months! While the summer months of July and August had higher inventory, homes have been moving quickly all year long. Low inventory across San Diego County, Southern California, and the entire U.S. is keeping the seller’s market alive and well. With inventory remaining low, don’t expect to see prices dropping significantly any time soon.
- Buyer Demand: Low interest rates, combined with the fact that homes are being valued more than ever since the pandemic, have ensured homebuyer demand remained strong throughout 2021. Across San Diego County, single-family homes are flying off the market, with an average of just 27 days on market. To measure demand on the real estate market we’ve also calculated the absorption rate, which compares the number of homes sold in a month to the total number of homes for sale on the market. In November, the absorption rate was 122%. For reference, anything over 20% is considered a seller’s market.
- Median Price in San Diego County, CA: Home prices have been climbing at impressive rates over the last two years. And with low supply and high demand persisting, home prices are likely to continue rising well into 2022. Currently, San Diego home prices for single-family homes are up to $767,000.
- Luxury Highlight: The average sale price in Del Mar is up to $2,979,917. Inventory is less than HALF of what it was twelve months ago and that’s why homes are moving fast. Normally, luxury real estate takes months longer to sell than more affordable real estate, but single-family homes in Del Mar are selling in an average of just 27 days.
How is San Diego real estate market?
Housing prices and sales have been rising across Southern California – notably San Diego – for the past two years. In fact, across SoCal, the median home price has seen double-digit growth for the past twelve consecutive months. With inventory remaining low while demand continues to soar, homes are selling quickly, attracting multiple offers, and selling over the asking price. Buyer demand should continue into 2022, but mortgage rates are expected to increase. It’s important to note though that looking back on 30-Year Fixed-Rate Mortgages Since 1971 from Freddie Mac, rates are still hovering around historic lows.
According to the latest California Housing Market Update from C.A.R., the Southern California market is still strong. Prices dropped ever so slightly over from September to October, but annually the region has had a 14% increase in median sold prices year-over-year. remained reasonably strong in October, despite a decline in year-over-year sales growth. In San Diego County, median single-family home prices increased 13.5% year over year reaching $850,000, and sales fell 8.3% year over year.
Inventory is low, prices are rising, and pent-up demand alongside low mortgage rates has the San Diego housing market flooded with homebuyers. Here are some more highlights about the San Diego Market according to C.A.R. and their latest affordability index:
- The median list price for San Diego in Q3 is $830,000
- The monthly expected payment including insurance and taxes is $3,870
- The minimum qualifying income for the median home is $154,800
- The median listing home price per square foot was $494
- Supply declined much faster than demand in the Bay Area, Southern California, and Central Coast
- Spring Valley is the cheapest city across San Diego County, with a median listing home price of $650K
To learn more about our local markets in Southern California check out our market updates for Los Angeles, Orange County, Riverside, and San Bernardino.
Are housing prices going down in San Diego?
Home prices have been climbing all year long in San Diego, and they are not expected to go down any time soon. We’ve seen a leveling off of prices with no change from September to October, but with inventory remaining limited and demand remaining strong, prices are unlikely to drop. California real estate prices on a whole are expected to increase in 2022.
Freddie Mac expects a home price growth of 7.0% in 2022, and C.A.R. predicts a median price increase of 5.2% for next year. If you’re interested in buying in San Diego County but have a tight budget to stick to, check out our list of the Top 10 most affordable places to buy in San Diego.
Is San Diego a Buyer or Seller’s market?
San Diego is still very much a seller’s market thanks to low supply and high demand. If you’ve been waiting to time the market for your home sale – this is it! Homeowners who price and prepare their home for sale properly are selling within days, not months, and capturing top dollar. If you are looking to buy a new home in San Diego, expect lots of competition, bidding wars, and a fast-paced market.
However, thanks to low mortgage rates, buyers have a great incentive to buy now before rates have time to climb higher as the economy recovers.
Will the housing market crash in 2022?
We don’t anticipate the housing market will crash next year. Why? Because low inventory and the continued nationwide housing shortage are likely to push prices even higher. Regardless of the foreclosure moratorium ending post COVID-19, homeowners are in a much better place now than they were in say 2008. The last time the market crashed, it was because homeowners couldn’t afford their mortgage and didn’t have enough equity to sell for a profit.
Now, homeowners are on solid footing thanks to home price increases pushing up equity gains. According to the latest Equity Insights Report from CoreLogic, homeowners gained an average of $51,500 in equity for 2021, and negative equity fell by 28.9% on a year-over-year basis. Over the summer, home price growth hit its highest level in over 45 years, pushing equity gains to a record high as well. These equity gains will play a crucial role in warding against foreclosure for the 1.2 million borrowers who reached the end of forbearance in September.
Landlords who are smart with their investment properties also have nothing to fear. Condos and apartment rentals are still in high demand with plenty of renters searching for leases. And if it comes time for a sale, this is a great time with seller profits at all-time highs.
What are the best neighborhoods in San Diego County?
Based on our list of Top 10 suburbs in San Diego, here are some of the best neighborhoods in San Diego County.
Carlsbad – Carlsbad is located 35 miles north of downtown and offers residents everything from beautiful beaches to an adorable walkable downtown village. Known for its relaxed atmosphere, Carlsbad is popular among surfers, outdoor enthusiasts, and families because of the great school district. Within Southern California, locals visit Carlsbad for the beautiful Flower Fields in the area that bloom every year.
Encinitas – Offering everything from grand estates to cozy single-family homes, homes in Encinitas offer great pride of ownership for locals. A relatively small beach town with a bohemian yet chic vibe, homes for sale in this community move quickly. The city is well known for its vibrant downtown district, Encinitas 101, offering everything from great eateries and bars to galleries, eclectic boutiques, and shops. If you want to learn more about the Encinitas community, contact one of our local experts in our First Team Encinitas Office.
Solana Beach – A laid-back beach town full of coffee shops, craft breweries, and adorable shops, there’s a lot to love about this neighborhood. Not only is Solana Beach one of the best places to live in San Diego, but it’s also one of our Top 10 luxurious places to live in Southern California. Solana Beach offers residents high-quality schools, easy access to downtown San Diego via the I-5, plus it’s home to one of only three train stations in San Diego County, so you can skip the traffic altogether.
Del Mar – Home to beautiful luxury beachfront homes with ocean views, San Diego real estate within Del Mar is always in high demand. Quiet and clean, the city includes several nature preserves, boutiques, and seasonal festivals at the Del Mar Fairgrounds. Del Mar is probably best known for the Del Mar racetrack. Easily accessible via the Surfliner train, the city is a fun place to live and visit within Southern California.
La Jolla – A picturesque seaside town with luxury homes and beach cottages, La Jolla is an iconic San Diego neighborhood. Featuring tons of different architectural styles including Spanish Colonial and more, homes for sale in La Jolla are sought after for their ocean views and unique designs. La Jolla is also home to one of the richest neighborhoods in Southern California, La Jolla Farms where you will find tons of high-powered executives and celebrities like Alicia Keys.
