May Housing Market Snapshot
As the weather warms and pandemic restrictions ease across much of the country, the U.S. housing market shows little sign of cooling. Robust buyer demand, fueled by low mortgage rates, continues to outpace supply, which remains near historic lows. Nationwide, inventory remains much lower than it was at this time last year, and sales prices are surging as a result.
San Diego North County – Closed Sales increased 64.5 percent for Detached homes and 85.1 percent for Attached homes. Pending Sales increased 22.9 percent for Detached homes and 25.7 percent for Attached homes. Inventory decreased 55.6 percent for Detached homes and 53.0 percent for Attached homes.
The Median Sales Price was up 31.1 percent to $865,000 for Detached homes and 24.1 percent to $540,000 for ttached homes. Days on Market decreased 31.0 percent for Detached homes and 30.8 percent for Attached homes.
Supply decreased 63.6 percent for Detached homes and 62.5 percent for Attached homes.
With such limited supply of existing homes to purchase, all eyes are on home builders to provide a much-needed boost of inventory to the market to help meet buyer demand. However, increasing material and labor costs, along with
supply chain challenges, have contributed to significantly higher construction costs, with builders passing these costs on to homebuyers. And while the warmer temperatures, rising sales prices, and the reopening of the economy
may draw more sellers to the market, historically low levels of homes for sale are likely to continue for some time
San Diego County Average & Median Sales Price
May property sales were 198, up from 107 in May of 2020 and -15.7% lower than the 235 sales last month. May 2021 sales were at their highest level compared to May of 2020 and 2019. May YTD sales of 899 are running 45.9% ahead of last year’s year-to-date sales of 616.
The median sales price in May was $678,500, up 21.9% from $556,415 in May of 2020 and down -2.4% from $695,000 last month. The average sales price in May was $751,622, up 19.8% from $627,443 in May of 2020 and down -7.7% from $814,203 last month. May 2021 ASP was at highest level compared to May of 2020 and 2019.
Inventory & MSI
The total inventory of properties available for sale as of May was 210, up 11.7% from 188 last month and down -38.8% from 343 in May of last year. May 2021 Inventory was at the lowest level compared to May of 2020 and 2019.
A comparatively lower MSI is more beneficial for sellers while a higher MSI is better for buyers. The May 2021 MSI of 1.1 months was at its lowest level compared with May of 2020 and 2019.
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 May was 23, equal to 23 days last month and down from 47 days in May of last year. The May 2021 DOM was at its lowest level compared with May 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 May 2021 selling price per square foot of $457 was up 1.6% from $450 last month and up 18.7% from $385 in May 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 May 2021 selling price vs list price of 103.5% was down from 103.8% last month and up from 99.3% in May 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 May 2021 was 224, down -1.8% from 228 last month and up 6.7% from 210 in May of last year.