San Diego Market Recap for 2023

[Steve Meyers]

Hey BP fam, wanted to do a quick recap summary for what we saw last year in the market here in San Diego.

Appreciation Rate:
San Diego continued its trend of robust appreciation in 2023. While the market saw a slight moderation compared to the previous year, with an approximate appreciation rate of about 10-11%, it remained a seller's market for most of the year. The buyer demand for San Diego is still very strong although affordability has become an issue for many buyers.

Inventory Levels:
One of the defining features of the San Diego market in 2023 was the persistent challenge of limited housing inventory. The shortage of available homes for sale persisted throughout the year, contributing to heightened competition among buyers. Below is a snapshot of inventory levels by price points - December 2022 to December of 2023. As you can see inventory this past December was up quite a bit since December of 2022, which is a great sign for buyers if this trend continues.

Median Sales Price:
The median sales price in San Diego experienced a notable ascent in 2023, reaching new highs and reflecting the market's continued upward trajectory. Below is a breakdown of the median sales price during each month last year.

2023 Median Sales Price for Detached Single Family Houses - Rose by 11% since January

January: $849,000
February: $900,000
March: $940,500
April: $952,600
May: $955,000
June: $1M
July: $990,000
August: $1,025,000
September: $999,000
October: $964,000
November: $980,000
December: $949,000

2023 Median Sales Price for Condos/Townhomes - Rose by 10% since January

January: $590,000
February: $616,000
March: $635,000
April: $640,000
May: $640,000
June: $650,000
July: $641,000
August: $677,000
September: $660,000
October: $667,500
November: $667,500
December: $650,000

Looking Ahead:
As we embark on a new year, it’s essential to anticipate how these trends might shape the San Diego real estate landscape in 2024.

As we all know the fed increased interest rates to help fight inflation, but now that inflation is starting to get under control, signs are pointing to interest rates coming down in the Spring of this year.

A cut in 2024 would be the first since the early days of the Covid, when the Fed slashed rates to near zero to bolster the economy.

Of course, there’s still ample uncertainty over how soon and how quickly the Fed may cut rates this time around, but you can bet that once they start coming back down the buyer competition and mutiple offers will return from the days of 2021.

If you have additional questions about the market or data on a certain zip code, I'd be happy to help.