Why are Home Prices still going up in La Mesa and San Diego?
How and why are home prices continuing to go up in San Diego is a question I am getting a lot lately. The answer is simple: supply and demand.
First, let’s take a look at this graphic from Zillow.
It shows that Nationally Pending sales are up eighteen point eight percent (18.8%) month-over-month. And New listings taken are up five point two percent (5.2%) month-over-month.
But . . . if we look at the year-over-year figures Total Listings are DOWN twenty point seven percent (20.7%) and New Listings taken are DOWN sixteen point six percent (16.6%) year-over year.
This is a little better graph of that data, the green line represents the new listings taken and the gold line represents the Total listings available for sale and we can see that we are way down in total listings.
Now that same information for San Diego county. New Pending Sales the month of June 2020 compared to the month of June 2019 is UP 21%. New Listings taken month-over-month is actually DOWN 16.4%.
Last June we had Seven thousand-forty-seven (7,947) active listings for sale and this June we have a total of four thousand-twenty-five (4,825) available! That is DOWN Sixty-four point seven (64.7%) percent!
And the New Listings taken year-over-year are DOWN fourteen point one (14.1%) percent. In the meantime, Showings are way UP around the country and according to the latest Showingtime report on their website thru May of 2020 and it shows a that the Showing Index in the West has increased one hundred and fifty point four (150.4%) percent since last year.
So, it is NO surprise that home prices are continuing to rise as we have just seen the supply is
way down and the demand is way up! Will that continue? We’ll see next month.
If you have any questions please don’t hesitate to give me a call or just send me a text.