We’re into December of 2020, and our San Diego real estate market has been on a wild ride this year. First COVID hit and transactions dropped by 50%, then a surge of pent-up demand emerged many months later, causing the market to go crazy. Supply plummeted and homes were getting dozens of offers. Nobody could’ve predicted this, and there are many predictions for what might happen in 2021. No one has a crystal ball, but here are the latest stats to give you a good idea of where the market may be headed:
What do these stats mean? If you’ve been following my previous market updates, you’ll notice that the decrease in new listings and overall supply is pretty consistent with where it’s been month to month. The big difference is with pendings—we’re used to seeing that number increase on a monthly basis at a rate of about 20%. Since it’s dropped 15%, it appears the surge of pent-up demand is over.
What does this mean for buyers? Earlier in the year, it was a much harder time for them to get their hands on good properties because competition was so fierce and multiple-offer situations were so common. Now, although fewer homes are hitting the market and inventory is still low, your competition has dropped significantly if you’re looking to buy.
If you’re looking to sell, the decrease in news listings and supply is good news because it means you have less competition to deal with as well. The fact that the median price has risen and the average days on market has dropped bodes well for you too. If you list now or early in 2021, you can expect your home to sell quickly (perhaps not as quickly as a few months ago, though). As long as the number of pendings doesn’t drop further, we should see prices continue to rise.
Remember—these are the numbers from San Diego County as a whole, but they can vary from neighborhood to neighborhood (and among home types). If you’d like a market analysis of your specific ZIP code, call or email me and I’d be happy to help you. If you have any other real estate questions, feel free to reach out to me as well. I hope you have a great holiday season, and I’ll see you in 2021!