Breaking News: San Diego Tops the Country in Housing Appreciation

Here’s what you need to know about the state of San Diego’s home values.

Did you hear? San Diego has claimed the top spot for real estate appreciation, according to the Case-Shiller index, a trusted source for real estate reporting nationwide. With an impressive 8.8% year-over-year increase, San Diego leads the pack among the 20 metro areas surveyed.

So, what’s behind these soaring prices? It all boils down to one key factor: low inventory. January saw the lowest number of home sales since 1988, with just under 1,700 homes changing hands. This isn’t due to a lack of buyer interest—it’s a direct result of the limited housing supply.

Looking at the numbers, the median home price hit a new high of $860,000 at the end of February. However, this increase goes hand in hand with fewer active and new listings. Currently, there are only about 2,700 homes on the market—a stark contrast to pre-pandemic levels, when the average hovered between 11,000 and 13,000 homes.

There are still plenty of buyers looking to move to San Diego; however, sellers seem to be holding back due to higher interest rates. Many sellers are opting to leave the area, leaving behind a shortage of available homes for sale.

For buyers, the message is clear: now is the time to act. With dwindling inventory and the expectation of declining interest rates, waiting may only lead to higher prices down the line. Consider seizing the opportunity now, even if it means refinancing later, to take advantage of improved rates. In all likelihood, your home will appreciate in value over the next year.

If you have questions about this question or anything else, please call or email me. I’d love to hear from you.