San Diego County Market Overview | March 2023

According to the National Association of REALTORS® (NAR), existing home sales surged 14.5% month-over-month, marking the largest monthly increase since July 2020 and the first monthly gain in 12 months. This sudden uptick in sales activity is attributed to the contracts signed earlier this year when mortgage rates dipped to the low 6% range, leading to a surge in homebuyer activity. Pending sales have also improved for the third consecutive month heading into spring. However, closed sales decreased significantly for detached and attached homes, along with pending sales and median sales price.

Days on market and supply increased for both types of homes. Limited inventory nationwide may have contributed to even higher sales if not for this issue. At the start of March, the current sales pace had only 2.6 months' supply of existing homes, well below the 4-6 months' supply of a balanced market. Inventory remains suppressed, partly due to nearly hitting 7% mortgage interest rates before falling in recent weeks. These higher rates have put downward pressure on sales prices, resulting in a year-over-year decrease in national home prices for the first time in over a decade, according to NAR, breaking a 131-month streak of annual price increases. For the full Monthly Indicators Click Here

San Diego County (CA)