San Diego’s Median Home Price Hits Another Record: $640k
Up from $634k in July 2020, the August median home price in San Diego has increased again, to $640k, reaching a new peak.
Amid the COVID-19 pandemic, we’ve experienced a surge in the demand for homes and the county has seen prices rise more than 8% since March. As more and more of us have been working from home, we have seen a steady increase in the value being placed on homeownership and the increasing desire for more space and room for a home office. In addition to this, mortgage rates have hit a rock-bottom, resulting in an increased demand and leading buyers in the San Diego market to chase low inventory and a reduced supply of homes. The fierce competition coupled with a lack of inventory has led us to the obvious – another month of increasing prices and another median home price record.
That being said, as average rates on long-term mortgages remain at historically low levels, even with these price increases, low interest rates are continuing to give buyers more purchasing power than a year ago. Even with higher prices, monthly payments are still favorable to buyers and lower than before (when rates were higher and prices were lower), which has continued to motivate buyers and keep the market going.
Per Freddie Mac, in August, the rate for a 30-year fixed mortgage hovered 2.94%, down from 3.62% the year prior. Locking in a long-term mortgage at a rock-bottom rate is every home buyers goal. And rates haven’t consistently been this favorable … ever.
All this being said, if you’re a buyer in today’s market and needing to buy a home or wanting to take advantage of such favorable monthly payments, be prepared for competition but don’t let it scare you! You just have to be patient.
And if you’re thinking about selling, there is no better time than the present – a time when the market is mimicking the fundamental concept of supply and demand, and we are experiencing yet another month of more buyers than homes.