What’s happening in San Diego’s real estate market?

The San Diego Skyline with San Diego Bay in front and mountains in the back.

Views this pretty come with a price. | Photo via @coldayman

We love calling San Diego home, but what’s the cost of a house in America’s Finest City? Recently-released data from the S&P/Case-Shiller Index showed it may be cheaper than it was a year ago. Home prices in the San Diego metro area fell 1.4% in January 2023 compared to January 2022.

What changed from last year?

Home sale costs in San Diego County peaked in May 2022 when the average home sold for $850,000. But that month also saw the tides begin to turn as mortgage rates climbed and average sale prices started to fall in June.

Since then, rates have increased. According to Freddie Mac, interest on a 30-year, fixed-rate mortgage was 6.28% on Thursday, April 6. This is ~1.5% greater than this time last year, and as rates go up, housing prices may reflect the change.

It might be surprising to see declines in such a popular city, but it’s not a shock to some experts. According to Allan Timmermann, a professor at UC San Diego Rady School of Management, San Diego’s prices will fall faster than the national average because the market overheated during the pandemic.

What’s happening now?

In 2023, people may be staying put. January saw 1,682 home sales in San Diego County — the lowest number in 35 years. As of last month, the Federal Reserve Economic Data reported fewer homes were listed for sale than in January.

So, Rocket Homes considers San Diego a seller’s market because there’s high demand and low inventory.

When SDtoday spoke with local real estate experts at the end of 2022, they anticipated price growth would stabilize in 2023 — likely due to rising mortgage rates — but demand would remain strong. Recent data aligns with this; though home prices are still decreasing, their rate of decline has been slowing.

Events

Monday, April 10

In The Park Series: Creepy Crawlers | Monday, Apr. 10 | 10 a.m.-12 p.m. | Community Park, 13094 Civic Center Dr., Poway | Free | Kids can meet in the field by the ballpark to look for treasure, bugs, and have fun with fossils.
Muse: Will Of The People World Tour | Monday, Apr. 10 | 6:30 p.m. | Pechanga Arena, 3500 Sports Arena Blvd., San Diego | $34-$244 | The Grammy Award-winning English rockers bring their tour to San Diego.
Argentine Tango | Monday, Apr. 10 | 7-9 p.m. | Centro Cultural De La Raza, 2004 Park Blvd., San Diego | Free | Shall we dance?

Tuesday, April 11

Vicki and Carl Zeiger Insights Seminars | Tuesday, Apr. 11 | 6 p.m. | The Old Globe, 1363 Old Globe Way, San Diego | Free | This seminar features artists engaging patrons in an informal presentation of ideas to enhance the theatergoing experience.
Riverdance | Tuesday, Apr. 11-Thursday, Apr. 13 | Times vary | Civic Theatre, 1100 Third Ave., San Diego | $34-$104 | It’s the 25th anniversary of this energetic celebration of Irish and international dance beloved for its Grammy Award-winning score.
The XIXth | Through Sunday, April 23 | Times vary | The Old Globe, 1363 Old Globe Way, San Diego | $29-$101 | A show depicting the intersection of sports and activism, based on events from the 19th Olympic Games in 1968.

More events live here

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News Notes

Civic

City council members in National City unanimously voted to repeal the ban on lowrider cruising, a law that has been in place since 1992. Locals said the pastime provides a sense of culture and community, and the repeal will be confirmed after a second reading on Tuesday, April 18. (NBC 7)

Edu

Enrollment in San Diego County schools declined in the 2022-2023 academic year for the fifth consecutive year. The county saw 4,342 fewer students enrolled than in the 2021-2022 year, and there are 5% less students than there were pre-pandemic (measured from the 2019-2020 year). (San Diego Union-Tribune)

Concert

Rock legends Duran Duran will bring their “Future Past” tour to the North Island Credit Union Amphitheatre on Tuesday, Aug. 22, with guests Bastille and Nile Rogers & Chic. If you’re “Hungry Like the Wolf” for tickets, general public sales start Friday, April 14, at 10 a.m.

Real Estate

Still looking to buy a home? First-time homebuyers are eligible to apply for the California Dream For All Shared Appreciation Loan Program to help with down payments and closing costs. In San Diego County, applicants may earn up to $211,000 annually with a minimum credit score of 680. (ABC 10)

Number

52.5°. That was the water temperature recorded off Del Mar last week. This chilly reading is the lowest temperature measured in San Diego County since UC San Diego implemented its buoy system to monitor waters in the 1970s. (San Diego Union-Tribune)

Ranked

What’s the best thing to do in San Diego? Stacker released its list of the city’s 30 highest-rated activities, compiled using data from Tripadvisor. Mission Beach came in at No. 1, averaging a 4.5/5 rating based on 2,042 reviews. (Stacker)

Finance

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Fun Fact

We’re asking our readers to take our brief survey to help us ensure the content we deliver is relevant to you. Your feedback is important to us, and we’re all ears. Bonus: you’ll be entered into a drawing to win $500. Take the survey.

Travel

You love strolling in Balboa Park. But do you know how to ask for directions to Jardin des Tuileries in Paris? Babbel — the No. 1 language app in the world — can help you start learning just that in as little as three weeks. Pro tip: Snag 55% off your subscription today.*

Trending

How to make skincare more fun: the Marshmallow Whip Maker, which turns the cleanser you’re already using into a fluffy, marshmallow-like foam that feels rich and creamy on the skin. Keep the skincare gains going with a trusted SPF stick for face and body + a silk pillowcase for nighttime.

Community

🌳 Swinging in

New playground structure installed at Dennis V. Allen Park

A new playground structure at Dennis V. Allen Park in Mount Hope with slides.

The new structure that slid into Dennis V. Allen Park. | Photo via @CityofSanDiego

Time to get back outside. The City of San Diego unveiled a new play structure at Dennis V. Allen Park in Mount Hope last week. The shaded equipment features slides and climbing spaces, and joins the swing sets and basketball courts at the 5.6-acre park.

In November 2021, the previous playground structure was destroyed in a fire. City officials stated the replacement was delayed due to the evaluation process and the time needed to receive the equipment.

Leaders in the community hope this is a starting point to add more resources to Mount Hope. City Council President Sean Elo-Rivera successfully advocated to allocate $750,000 in this year’s financial budget for a recreation center to be designed for the park, though there is no set timeline for this project.

The Wrap

Today’s edition by:
Michael

From the editor

Good morning, San Diego. I’d like to wish a happy belated 80th birthday to Slomo. If you don’t know him, his real name is Dr. John S. Kitchin. In 1998, he quit his job as a neurologist and moved to Pacific Beach to spend his days skating by the beach. The New York Times published a documentary about his move — and while I don’t know him personally — I can confirm he’s real, and a local legend.

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