San Diego Housing Trends During COVID-19

The coronavirus pandemic (COVID-19) has taken a toll on not just health, but also the economy. As many businesses go bankrupt, no field remains untouched or unhindered by this pandemic.

The same is the situation with the real estate market of San Diego, which has seen the most significant change in nearly 30 years. COVID-19 led the real estate market to a crawl, as the San Diego home sales took a nosedive in May of 2020, reaching as few as almost 50% of listing inventory rates.

This drop occurred as sellers pulled their homes off the market due to a lack of consumer confidence, and to wait for better selling times.

Although some potential buyers stopped their searches due to the fear of economic security, many still hit the ground running. This has resulted in high profit-gaining sales, and a large jump in San Diego housing prices.

According to analysis, the median price of San Diego homes was up by approximately 10%.

man holding head while sitting on couch

Sellers worries during COVID-19

There was a list of other reasons that caused the sellers to pull their homes off the market, which were:

  • The fear of spreading COVID-19 at home showings
  • The concern of not getting a fair price on the house, while suffering significant job losses
  • They found it challenging to meet the cleaning requirements for a home showing
  • Uncertainty of what is going to happen to home prices, incomes, etc.
  • Some are just thinking that no one is buying due to coronavirus and are not spending money
  • Sellers and buyers are having communication problems

woman holding head

Buyers problems during COVId-19

With the low-interest rates, motivated buyers who were looking to buy were also facing difficulties, which were:

  • The houses they searched were already sold
  • The seller had accepted offers
  • They were quickly outbid due to the lack of homes in the market

 

Satellite image of housing community

The result – How This Pandemic Is Effecting The Drop In House Sales?

COVID-19 caused San Diego house sales to drop significantly in April and May of 2020, but skyrocket shortly after, and we’re seeing a similar trend in 2021. It was due to the uncertainty caused by the pandemic and the financial gains earned by many.

The lack of sellers also gave rise to the house prices in San Diego throughout much of the year. As inventory is low, the prices rise, creating the most suitable time for the homeowners to sell and buyers to buy as mortgage rates are low as well.