San Diego Market Update: May 2023

San Diego's real estate market is continuing to experience a significant surge in prices as new numbers reported going into May 2023 show a median price point of $850,000. This is a significant increase from just two months ago when the median price point was at $750,000, and last month when it reached $800,000. This trend of rising home prices is being observed in almost all homes, especially in the median priced homes that fall within the range of $700,000 to $900,000.

With the current state of the market, many homes in the median price range that are in decent condition are receiving multiple offers, making it more competative for prospective buyers to purchase their dream home. However, it remains to be seen how much longer this trend will continue and how quickly prices will continue to rise at this pace.

Despite the seemingly high prices, it is important to keep in mind that the inflation rate has been running at around 9% for part of this year. This means that even though we may be getting close to the peak prices that were observed in 2022, homes will still be about 9% cheaper than they were a year ago, once inflation is factored in. It is interesting to see this trend in the market, and only time will tell how the real estate market in San Diego will continue to trend.

In conclusion, if you're a prospective homebuyer in San Diego, be prepared for the possibility of competing with multiple offers and higher prices. But it's important to keep in mind the effects of inflation and how it could potentially affect home prices. Stay informed and keep an eye on the market as it continues to evolve. Contact me if you have any questions about how the current market status could impact your home buying journey.

*stats from InfoSpark