July San Diego Market Report

Let’s Start with Good News — The White House recently announced additional measures to help struggling homeowners avoid foreclosure as they exit forbearance, including loan modifications and payment reductions. Borrowers with federally backed mortgages can lock in lower interest rates and extend the length of their mortgages. For borrowers who can’t resume their monthly mortgage, HUD will offer lenders the ability to provide all eligible borrowers with a 25% principal and interest reduction.

Closed Sales Decreased 10.4 Percent for Detached homes and 6.0 percent for Attached homes. Pending Sales decreased 22.4 percent for Detached homes and 12.3 for Attached homes.

The Median Sales Price was up 28.3 percent to $975,293 for Detached homes and 13.5 percent to $582,000 for attached homes. Days on Market decreased 54.8 percent for Detached homes and 65.5 percent for Attached homes.
Supply decreased 54.2 percent for Detached homes and 47.1 percent for Attached homes. The National Association of REALTORS® reported inventory of homes for sale nationwide rose slightly in June as more sellers list their homes, hoping to take advantage of record-high sales prices across the country. Even with renewed home seller interest, inventory overall remains 18.8% lower than a year ago, according to NAR.

San Diego Real Estate Market Month at a Glance July 2021
San Diego July Real Estate Market Trends
Property Sales
July property sales were 3,890, down from 3,912 in July of 2020 and -7.2% lower than the 4,190 sales last month. July 2021 sales were at a mid level compared to July of 2020 and 2019. July YTD sales of 24,727 are running 28.2% ahead of last year’s year-to-date sales of 19,284.Prices
The median sales price in July was $750,000, up 17.2% from $639,950 in July of 2020 and down -0.7% from $755,000 last month. The average sales price in July was $952,693, up 20.3% from $792,245 in July of 2020 and down -1.7% from $968,857 last month. July 2021 ASP was at highest level compared to July of 2020 and 2019.
Inventory & MSI
The total inventory of properties available for sale as of July was 4,281, up 6.0% from 4,039 last month and down -30.2% from 6,133 in July of last year. July 2021 Inventory was at the lowest level compared to July of 2020 and 2019.

A comparatively lower MSI is more beneficial for sellers while a higher MSI is better for buyers. The July 2021 MSI of 1.1 months was at its lowest level compared with July of 2020 and 2019.
Market Time
The average Days On Market (DOM) shows how many days the average property is on the market before it sells. An upward trend in DOM tends to indicate a move towards more of a buyer’s market, a downward trend a move towards more of a seller’s market. The DOM for July was 21, up from 20 days last month and down from 33 days in July of last year. The July 2021 DOM was at its lowest level compared with July of 2020 and 2019.Selling Price Per Square Foot
The selling price per square foot is a great indicator for the direction of property values. Since median sales price and average sales price can be impacted by the ‘mix’ of high or low end properties in the market, the selling price per square foot is a more normalized indicator on the direction of property values. The July 2021 selling price per square foot of $525 was down -1.5% from $533 last month and up 21.8% from $431 in July of last year.Selling Price vs Listing Price
The selling price vs listing price reveals the average amount that sellers are agreeing to come down from their list price. The lower the ratio is below 100% the more of a buyer’s market exists, a ratio at or above 100% indicates more of a seller’s market. The July 2021 selling price vs list price of 103.3% was down from 104.1% last month and up from 98.9% in July of last year.Inventory / New Listings / Sales
This last view of the market combines monthly inventory of properties for sale along with new listings and sales. The graph shows the basic annual seasonality of the market as well as the relationship between these items. The number of new listings in July 2021 was 4809, up 0.8% from 4,769 last month and down -5.8% from 5,106 in July of last year.