Lower home prices in San Diego are fading away
George Lorimer
Wednesday, August 23, 2023
San Diego County Housing Report: Lower Ranges Fading Away
August 22, 2023
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The lower, entry-level price ranges have been slowly disappearing, with far fewer closed sales and homeowners choosing not to sell their homes.
Entry Level Changes
There were an astonishing 51% fewer closed sales and 61% fewer FOR-SALE signs below $1 million this year compared to before COVID.
Click here to download the free report
Thanks to inflation, everyone is paying a lot more for just about everything. From 2019, pre-pandemic, to today, a loaf of bread has increased by 55%. Milk has risen by 31%, ground beef by 34%, and potato chips and a 2-liter soda have soared by 48%. Used cars are up 41%. A Big Mac was priced at $3.79 in 2019 compared to $5.17 today. Wallets have been squeezed. While the inflation rate may be cooling, higher prices are here to stay.
Housing is no exception. According to Freddie Mac’s Home Price Index, since the summer of 2019, the San Diego County metro has increased by 52%. As home prices climbed, what was considered the entry-level to homeownership slowly diminished over time.
Looking at 2013 helps illustrate how the goalposts have been moved for the lower ranges. In 2013, 65% of all closed sales were below $500,000, and 11,684 were detached. In 2019, only 36% were below $500,000, and 4,992 were detached. In 2023 through July, it sank to 1,561, and 374 were detached. Buyers today do not expect to secure a detached home for less than half a million dollars. That price point has faded away.
August 22, 2023
Your Home Sold GUARANTEED or I'll Buy It!*
Call GEORGE LORIMER at 61-846-1244 and Start Packing
The lower, entry-level price ranges have been slowly disappearing, with far fewer closed sales and homeowners choosing not to sell their homes.
Entry Level Changes
There were an astonishing 51% fewer closed sales and 61% fewer FOR-SALE signs below $1 million this year compared to before COVID.
Click here to download the free report
Thanks to inflation, everyone is paying a lot more for just about everything. From 2019, pre-pandemic, to today, a loaf of bread has increased by 55%. Milk has risen by 31%, ground beef by 34%, and potato chips and a 2-liter soda have soared by 48%. Used cars are up 41%. A Big Mac was priced at $3.79 in 2019 compared to $5.17 today. Wallets have been squeezed. While the inflation rate may be cooling, higher prices are here to stay.
Housing is no exception. According to Freddie Mac’s Home Price Index, since the summer of 2019, the San Diego County metro has increased by 52%. As home prices climbed, what was considered the entry-level to homeownership slowly diminished over time.
Looking at 2013 helps illustrate how the goalposts have been moved for the lower ranges. In 2013, 65% of all closed sales were below $500,000, and 11,684 were detached. In 2019, only 36% were below $500,000, and 4,992 were detached. In 2023 through July, it sank to 1,561, and 374 were detached. Buyers today do not expect to secure a detached home for less than half a million dollars. That price point has faded away.
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San Diego Market Statistics
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