Today, I want to go over the San Diego Real Estate Market Stats taking us through November 30th of 2020. This is called the Monthly Indicators Report, it is put out every single month by the greater San Diego Association of Realtors.
So, just to highlight the points at this point, the Dow Jones Industrial Average reached 30,000 it was a first it has since hit that again. We also saw mortgage rates that reached new record lows again.
One thing I have learned is never say never. I can remember telling my clients that we were never gonna see mortgage rates down around the 3% range again and not only have we seen it at 3% but we’re seeing it at record low so it has gone down low.
Right now, we anticipated staying low for the foreseeable future anyway. Real quickly, close sales have decreased, pending sales have decreased, inventory has decreased, days on market has decreased, supply has decreased, the only thing that has gone up is the median price of the homes.
I can remember in 2018 telling my clients that we might be finally hitting that saturation point where we’re getting more homes on the market and less buyers and what that was meaning at the time is that we were going to see a downward pressure on prices of homes that did not end up materializing because in 2019, we ended up getting quite a bit of not as much inventory so that means that we still have that supply and demand situation that we see playing out today through all of 2019 and then it’s even worse coming into 2020.
So, new listings on the market for the month of November was down 34.8% and down 19.3% for the year to date. Pending sales was down for the month 16.6% but only down 5.3%. So what we’re seeing here is that shortage of that lack of inventory but now we’re seeing a lot more buyers out on the market because of the low mortgage rate and the current health situation, people are trying to move out, maybe get into bigger places. Looking for places that can accommodate the kids, can accommodate home offices, home gyms, and that kind of stuff.
The pending sales while it is down year-to-date, it’s not down as significantly as we would have thought with the inventory the way it is and the current health situation. Closed sales is always going to be lagging on pending because you’ve got to go on pending first and then it goes into closing.
Some will fall out but very few do especially in this market. We’ll see in January what the whole year looks like.
Median sales price has gone up for the month of November, it’s up 13.5% but for the entire year it’s up 10 almost 10%, 9.5%. So in 2020, single-family homes by and large have increased in price almost 10% at 9.5% and that is about $706,000. So that’s an enormous amount of money for a single family home and it’s intimidating for first-time buyers.
Watch the video for a more detailed information about the Monthly Indicators Report.
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