San Diego home prices aren't dropping, despite low sales

State of play: San Diego County had its worst-ever home sales year in 2023, with record lows in December and January, "making even the worst of the Great Recession look like boom time," the Union-Tribune reported.

• Meanwhile, local home prices are rising at one of the fastest rates in the country, the newspaper reported.

What they're saying: Home prices are rising as sales hit historic lows, in part because San Diego for years has not built enough homes, according to Mark Powell, president-elect of the San Diego Real Estate Association.

• With low supply, high interest rates and no motivation for sellers because they're paying lower mortgage rates and property taxes, the market is going to be sluggish, he said.

By the numbers: In January 2024, the median price of new listings was $882,200 — a 10% year-over-year increase, per Redfin data. The median price of new listings were:

• $799,725 in January 2023
• $786,875 in 2022
• $678,238 in 2021

What we're watching: Real estate experts anticipate more action from buyers and sellers in 2024 if inventory rises and mortgage rates drop, as expected.