San Diego Market Update August 2020

Healthy buyer demand and constrained supply continue to be the story for much of the country. Nationally, showing activity in July remained substantially higher than a year before and multiple offer situations are a frequent experience in many markets. With the inventory of homes for sale still constrained, a competitive market for buyers shows little sign of waning. Closed Sales increased 3.3 percent for Detached homes and 4.5 percent for Attached homes. Pending Sales increased 21.4 percent for Detached homes and 26.7 percent for Attached homes. Inventory decreased 51.8 percent for Detached homes and 28.9 percent for Attached homes. The Median Sales Price was up 11.5 percent to $730,000 for Detached homes and 7.4 percent to $467,000 for Attached homes. Days on Market decreased 3.4 percent for Detached homes and 3.7 percent for Attached homes. Supply decreased 53.6 percent for Detached homes and 32.0 percent for Attached homes. While the number of unemployment insurance weekly initial claims have been far lower in recent weeks than their peak in March and April, more than 1 million new claims are still being filed each week and more 31 million were claiming benefits in all programs as of early July, compared to fewer than 2 million in July 2019. Despite this significant economic impact, home buyers remain extremely resilient. With mortgage rates remaining near record-low levels and home purchase mortgage applications up from a year ago, high buyer activity is expected to continue into the late summer and early fall market.