San Diego Housing Report July 15, 2020
Summer 2020 is set to be one of the hottest on record. For comparison, last year there were 614 fewer pending sales than today (-16%). In the past two weeks, the Expected Market time dropped from 42 to 37 days, which makes it a "HOT" seller's market, which allows sellers to call the shots during negotiations, and home values are rising. In comparison, last year's Expected Market time was 71 days.
While much of the country was working on a phased reopening of the economy in June, real estate activity continued to strengthen as well. Nationally, June showing activity as tracked by ShowingTime was up notably from the COVID-19 depressed levels in recent months but was also up from June 2019, reflecting pent-up demand by prospective home buyers.
Buyer activity continues to be robust, and seller activity continues to be a bit softer, with fewer homes being listed for sale than a year ago. Many housing experts believe sellers remain reluctant to list their homes due to continued concerns over COVID-19, which was beginning to see a resurgence in June. Until sellers regain confidence, housing inventory will continue to be constrained during what is expected to be an active summer selling season.
Demand - the number of new pending sales over the prior month - increased from 3,529 to 3,762, an additional 233 pending sales, which is up 7% in just two weeks. That's the best reading since June 2017! In the past four weeks, demand has added 639 pending sales, an increase of 20%. The record low mortgage environment (around 3%) is the fuel propelling housing to sizzling hot levels last experienced in 2017.