Feb 7, 2024 - News

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

Illustration of a hurdle with a real estate for sale sign hanging from it.

Illustration: Allie Carl/Axios

San Diego home sales are lagging but prices aren't dropping.

Why it matters: The region is struggling with a lack of inventory and high prices, putting homeownership out of reach for many, and particularly for younger buyers.

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.

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.

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