At the beginning of the year, I reported that we were seeing high buyer foot traffic and multiple offers again. This surge in January activity is now reflected in the San Diego market statistics.

Homes that went into escrow in January, closed in February and we can see it now in March.

Highlights

• Median Sales Price went up ($757,563)
• Days on Market went down (21 days)
• Months Inventory went down (1.2 months)
• Sales Price to Original List Price went up (98.8%)

Median Sales Price

The median sales price in San Diego is $757,563.

Recent Highlights:

• Peak: May 2022 at $855,000
• Low: Dec 2022 at $749,000
• Current: Feb 2023 at $757,000

Sales Price Takeaway

Prices rose slightly in January and February.

Days on Market

Median days on market is the number of days it would take to get an accepted offer, or how many days it would take to sell.

Recent Highlights:

• Low: March 2022 at 8 days
• Peak: Jan 2023 at 30 days
• Current: Feb 2023 at 21 days

Days on Market Takeaway

Homes were selling faster in January this year.

Months Inventory

This is the absorption rate of inventory. In other words, how many months it would take for the current inventory to be absorbed by the current # of buyers in today’s market. It is an indication of whether we are in a buyer’s or seller’s market. A neutral market is 6 months inventory.

Recent Highlights

• Low: Dec 2021 at 0.6 months
• Peak: July and Oct 2022 at 1.8 months
• Current: February 2023 at 1.2 months

Months Inventory Takeaway

Inventory went down as more buyers came back on the market. It’s interesting to see that we are technically still in a seller’s market.

New Listings

The number (quantity) of new listings coming on the market has been declining. In fact, the number of new listings in Feb this year is down 35% from last year.

Historically, the number of listings goes up in January, falls a bit in February and then starts to increase again in March. So far, I don’t think we are seeing it increase in March this year but we’ll be able to take a look at that when the final stats are released at the end of this month.

Recent Highlights

Here we will compare February new listings prior to COVID since the last few years have been such an anomaly.

• Feb 2019 (pre-COVID): 3878
• Feb 2020 (pre-COVID): 3902
• Feb 2021: 3514
• Feb 2022: 3278
• Feb 2023: 2104

New Listings Takeaway

February this year was much lower than usual which is contributing to the shortage of homes for sale.

Sales Price to Original List Price Ratio

This ratio compares the sales price to the original list price. One hundred percent (100%) means homes are selling at list price.

Recent Highlights

• Peak: April 2022 at 106.2%
• Low: Dec 2022 at 96.6%
• Current: Feb 2023 at 98.8%

Sales Price Ratio Takeaway

Buyer were able to negotiate and get price reductions towards the end of the year. When buyer demand increased early this year year, sellers received closer to their original asking price.

Overall

I’m hearing a pattern from buyers and sellers that they are putting their plans on hold until May. This is consistent with most years where May has the highest number of new listings coming on the market. During COVID (2020-2022), the new listings peaked in June and July, a little delayed from usual.

Thinking of Buying

If you are thinking of buying, now is a good time to prepare for the upcoming market. Speak with a lender for pre-approval and let’s talk about your options.

Thinking of Selling

If you are thinking of selling, now is a good time to prepare your home for sale. Reach out to me to see what you can do to get highest price for your home.

Home Seller’s Workshop

Join our home seller’s workshop! Presenters will include:

• Home stager
• Home inspector
• Appraiser

Get your questions answered directly from the experts!

Save the Date: Wednesday, April 26

More info coming soon!