Fall is officially here! The kids are back in school and the temperatures are cooling off. During this time of year, the San Diego real estate market generally slows a bit, and the numbers from September 2017 reflect this reality. However, local real estate trends such as home prices, inventory, and properties sold continue to stay strong; indicators of a healthy San Diego real estate market.
As we stated last month, we're on pace to continue having a strong fall season. Both home buyers and home sellers will find plenty of opportunities in this market. Now let's take a closer look at last month's San Diego real estate trends.
San Diego Real Estate Market Statistics for October 2017
As is to be expected, given the real estate market's traditional and natural slowdown this time of year, the number of San Diego homes for sale, under contract, and sold in September decreased slightly month-over-month. In August, 3,389 properties were sold; in September, that number dropped to 2,823, representing an almost 17 percent decrease. Breaking these numbers down further, we see that detached property sales decreased by more than 18 percent month-over-month, from 2,364 in August to 1,860 in September, while attached property sales decreased by 14 percent, from 1,125 in August to 963 in September.
Year-over year, the overall number of properties sold decreased by 16 percent from 3,379 in September 2016 to 2,823 in September 2017.
As for the number of properties for sale, differences were less pronounced. Overall inventory decreased slightly by 2%, dropping from 5,430 properties for sale in August to 5,309 in September. Of these, the number of detached houses on the market decreased by over 4 percent, from 4,026 in August to 3,878 in September. Conversely, in good news for home buyers seeking an attached home for sale in San Diego, the number of attached homes on the market increased by almost 2 percent, from 1,404 in August to 1,431 in September.
In September 2016, there were 6,524 homes on the market. This represents a drop of more than 18 percent year-over-year.
Average Days on the Market: Mostly Unchanged
Continuing a stable trend, the average number of days on the market for detached homes remained the same from August to September, coming in at 31 days. For comparison, this represents a slight drop from the average 33 days on the market that we saw in 2016 for detached homes. As for attached homes, the month-over-month difference was slightly more pronounced, rising from 23 days in August to 25 days in September. In 2016, attached homes spent an average of 28 days on the market, an increase of 12 percent year-over-year.
San Diego Home Prices: Slight Increases
Average sales prices increased slightly from August to September; detached home prices rose by less than .2 percent, from $777,981 in August to $779,291 in September. Attached homes showed a slightly larger month-to-month increase of just over half a percent, moving from a $473,223 average home in price in August to a $475,985 average home price in September.
As for median sales prices, detached homes came in at $610,000 in September, a slight decrease of .8 percent over August, which saw a median sales price of $615,000. Attached homes showed a slight increase in median sales prices, rising from $400,000 in August to $409,000 in September, or a difference of just over 2 percent. In contrast, median sales prices in September 2016 were lower, coming in at $565,500 for detached homes (an almost 8 percent difference) and $377,000 for attached homes (just over an 8 percent difference).
Interest Rates: Holding Steady
Continuing a stable trend, interest rates held relatively steady in September, dropping slightly from 3.8 percent to 3.76 percent. in 2016, September's interest rate was slightly lower at 3.56 percent. However, rates remain low, underscoring the healthy nature of the San Diego real estate market as we enter the last quarter of 2017.