Increased Seller Volume and Lower Buyer Demand Yields Reduction in San Diego Median Home Sales Price
For the first time in 7 years, San Diego’s median home price has decreased on a year-over-year basis, according to real estate tracker CoreLogic. In September of 2019, the median home price in San Diego County was $584,000, .1% lower than it was at the same time last year. The last time home prices were down on an annual basis in San Diego County was in March of 2012.
The Real Estate Outlook from Economic Professionals
Despite this perceived sluggishness, there are signs that the real estate market will pick up steam over the next few months, said Chris Thornberg, economist and founding partner of Beacon Economics. A tight housing market, low mortgage interest rates (3.6%), and little indication of economic disruption in the foreseeable future indicate a continuance of the second longest expansion period in U.S. economic history. To those predicting a recession in the coming months, Thornberg has this to say:
Every recession has to be caused by some shock to the system. To date, we have yet to see something that would rise to that level and push the economy off the growth path on which it is currently… By the end of the year, price growth is going to be up again and next year it will be a very healthy number. It is all driven by the fact that these interest rates are low and giving a lot of life to the market.
The Median Home Price in the San Diego Backcountry
Indeed strong sales in Fallbrook, Rancho Bernardo and Ramona indicate that high inventory and more buyers entering the market mark the reverse of the declining trend from the first three quarters of 2019. Red Hawk Realty has listed 8 new properties for sale in the San Diego backcountry in the last month and continue to field inquiries from sellers on a daily basis. From bug-out cabins in Mount Laguna to 20-acre estates in Cuyamaca, the San Diego backcountry has options for all buyers and interests.
If you are considering selling or purchasing property during 2019, now is the time to act. If you would like a free real estate valuation or consultation, please contact Meriah Druliner (760-420-5131; Meriah@Donn.com) or Donn Bree (760-518-6669; Donn@Donn.com).