The median price of San Diego County homes edged down to $ 730,500 in July, its first drop in six months.
The median price is still up 15.2% in one year and records have been reached on an almost monthly basis throughout the pandemic, according to data released Wednesday by CoreLogic / DQNews. The peak was reached in June when the median hit $ 749,750.
Analysts said a drop in the median of $ 19,250 probably wasn’t a big deal – that one month of data wasn’t big enough to signal a change in the market. They said the same market pressures still exist: rising wages for houseworkers, tight inventories and low mortgage rates.
“In the opinion of many of our members, this is probably only a momentary incident,” said Hope Atuel, executive director of the San Diego-based Asian Real Estate Association of America. “I don’t think we’ll see the prices drop significantly. I think at the end of the year we will see significant price gains. “
She said home inventory typically goes down around this time of year because parents are unlikely to move early in the school year.
The number of homes for sale was up in July from lows earlier this year, but still down from historical standards. From July 5 to August 1, 4,280 homes were on sale, the Redfin data center said. This is down from 5,758 at the same time in 2020; 8,413 in 2019; and 8,573 in 2018.
Real estate agents said low mortgage interest rates continued to motivate buyers. The interest rate for a 30-year fixed-rate mortgage was 2.87% in July, said Freddie Mac, up from 3.02% the year before. The rate is up from the December average of 2.68%, which was the lowest since 1971.
“It makes all the difference,” Jan Ryan, a Ramona-based RE / MAX agent, said of interest rates. “I think when we see the rates go up, we will see the prices go down.”
Ryan said she has seen stocks increase slightly, but the same intensity throughout the pandemic is still occurring. She said the seller of a 3,300 square foot single-family home in Ramona recently received two offers that exceeded the asking price of $ 1.38 million, but was now cold in his eyes because he feared he there isn’t enough inventory to find him a new home.
Median home resale prices hit a new high of $ 840,000, up $ 1,000 from the previous high in June. The median condominium resale was $ 550,000, down $ 11,000 from the June high.
Newly constructed homes, which include new single-family homes and condos, reached a median of $ 677,000. That’s below the new home record of $ 812,500 in October 2018, which reflected an increase in the number of luxury single-family homes for sale.
Price increases were flat in Southern California in July, but up 17.5% year-over-year in the six-county area. Riverside County saw the largest annual increase, 23.2%, for a median of $ 525,000.
It was followed by San Bernardino County, up 21.3% for a median of $ 455,000; Los Angeles County, up 18.7% to a median of $ 795,000; Orange County, up 16.6% to a median of $ 904,000; Ventura County, up 16.5% with a median of $ 735,000; and San Diego County with its 15.2% increase.