Tom York on Business: San Diego’s Median Home Price Over $950,000 in June

Residential real estate once again dominates this week’s column on business news.  To start, the California Association of Realtors, which represents brokers and agents in the state, says in its monthly report that San Diego home prices ticked over $950,000 in June. This piece of data mirrors statewide results. Statewide home sales remain below a 300,000 annualized pace, but the median price has edged up over $800,000. The number of home sales here is down 24% year over year, the result of a shortage of listings coming to market. Homes sales declined 2.4% in June compared to May.  With so few listings, buyers are pushing the median price in their frenzy to buy a home.  The median price for a single-family home sold in June was $958,000 compared to $950,000 for the year-ago period. Elevated interest rates and a shortage of homes for sale continue to dictate the California housing market.  The median home price is still well above the affordability range for many families, and this is likely to keep demand in check in the coming months. Meanwhile, national residential real estate broker Re/Max reports that San Diego was among five metro areas in the country with the biggest decline in new listings year over year as of June.  San Diego reported a nearly 35% drop in new listings, putting it fifth on the list of the five metro areas with the biggest declines in new listings. Phoenix topped the rankings with a near 55% decrease, while San Francisco came in at No. 4 with a 35% drop. Seattle and Las Vegas were the other two metro areas on the list.  Nationwide, June’s year-over-year decline in active inventory of 10.7% was the first such decrease in the past 13 months. New listings, although down 25% compared to a year ago, were up 0.5% over May. This final item should come as no surprise, given the recent runup in housing prices in San Diego. A new study by international real estate portal Point2 found that San Diego has one of the highest shares of luxury homes for sale in the United States.  The study analyzed the share of homes priced at least $1 million in the 30 largest, 30 mid-sized, and 30 smallest cities in the country. San Diego had the 10th highest share of luxury homes for sale among the 30 largest cities, with 58.6% of listings priced at least $1 million.  Silicon Valley tech company Knightscope, which claims to be a leading developer of autonomous security robots, says it has deployed its robots in San Diego and Ohio.  In San Diego, Knightscope partner JDS Security deployed its first of four K5 Autonomous Security Robots at a multi-family residential community.  The new client is one of the top multifamily housing owners, developers, and property managers in the U.S.  In Ohio, a university has bought its first K1 Blue Light Tower to supply emergency communications to its students and faculty.  Knightscope says its communications and robotics products help protect the places people live, work, study, dine, and visit.  The company claims that communities that have deployed its robots have seen a significant reduction in crime, The owner of a commercial property experienced 20 security incidents per month before deploying the K5 and now is down to 1 for the entire year that the K5 has been patrolling 24 hours a day, seven days a week.  San Diego mortgage lender Guild Mortgage was named a top ten lender for the Maine State Housing Authority‘s First Home Loan Program in 2022. Guild Mortgage closed more than 100 loans totaling over $23 million with Maine Housing in 2022. The First Home Loan Program offers little to no down payment options for first-time home buyers. Guild is a leading national lender “with an established history of offering a comprehensive array of loan products and partnering with government organizations to help deliver the promise of a home in every neighborhood and community.” Finally, this item of note.  Retired Navy aviator and Coronado resident Jonathan Mosier has been installed as the new president of the Downtown San Diego Lions Club. In addition to volunteering for the club for over 20 years, Mosier is a long-time devotee of movies. With the Coronado Island Film Festival, he developed a Student Classic Film Series to engage young people to enrich their cultural lives and strengthen their awareness of the community.  The 120-member club, which has been around for more than 100 years, is one of the largest in the country.  The mission of the club members is to support nonprofits that help veterans, the homeless, the elderly, the disabled, the deaf and blind community, and underserved youth.  For example, the club awards scholarships to underserved kids through their Lions Scholarship Program hosts a national high school varsity baseball tournament the Lions High School Baseball Tournament, and Lions Camp Jack, a youth summer camp, as well as offers programs that help homeless, disabled and others through their Lions Welfare Foundation.    Tom York is a Carlsbad-based independent journalist who specializes in writing about business and the economy. If you have news tips you’d like to share, send them to tom.york@gmail.com.

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Home Sales Rise Heading into Summer; Median Prices Stay Level in May, according to the Greater San Diego Association of REALTORS®

SAN DIEGO (June 8, 2023) – Sales of existing homes returned to positive territory in May after aslower April, according to the Greater San Diego Association of REALTORS® (SDAR) which compilesdata on the current home sale market through the San Diego Multiple Listing Service (SDMLS).Single-family home sales were up more than 13 percent in May, compared to April, and sales ofattached properties (condominiums) were up nearly 10 percent. However, in perspective, sales of allexisting properties are down 28 percent compared to 2022. The sparce inventory of homes on the market has kept prices from slipping too dramatically. Medianprices in May were virtually unchanged month-over-month. The price of a single-family home lastmonth was $955,000, about 2.6 percent lower than May of 2022. The median price of condos was$640,000, which is 4.5 percent lower than a year ago. “The brief rise in home sales should not mask the continuation of a troubling trend of a decrease ofsingle-family home sales compared to previous years,” notes Frank Powell, SDAR President. “Thislong-term deterioration is due to countless issues, including a drastic lack of inventory and lack ofbuyer interest due to recent economic concerns, such as inflation, and increased interest rates.” Powell adds, “As REALTORS®, it is urgent that we continue to stand up against the regressive policiesthat are directly impacting the housing market - including restricting development on available countylands, new penalties on rental housing providers, and a proposed new transfer tax on homesales. These measures dissuade buyers and sellers from entering the market and hurt the ability forfamilies and neighborhoods that have been historically marginalized to have the potential of creatinggenerational wealth from home ownership.” In May, the zip codes in San Diego County with the most single-family home sales were:• 92028 (Fallbrook) with 54• 92127 (Rancho Bernardo West) with 42• 92071 (Santee) with 38• 92024 (Encinitas) with 34• 92027 (Escondido East) and 92065 (Ramona), both with 33 The most expensive single-family property sold in May in San Diego County was a 5,500-square-footCalumet Avenue home in La Jolla. Spanning 100 feet of beachfront above a shallow sea bluff andsteps to the beach, it has 5 bedrooms, 4 full and 2 half bathrooms, and a living room designed forgrand-scale entertaining. The property sold on May 28 for $17.4 million. SDAR’s housing statistics are compiled monthly from the Multiple Listing Service (MLS). Click here fora detailed look at the numbers. The following is a summary of the latest results: TOTAL SOLD LISTINGS Comparing May 2023 to April 2023 (month over month)Single-Family: 13.5 percent INCREASEMay 2023 = 1,370April 2023 = 1,207 Condos/Townhomes: 9.7 percent INCREASEMay 2023 = 780April 2023 = 711 TOTAL SOLD LISTINGS Comparing May 2023 to May 2022 (year over year)Single-Family: 27.9 percent DECREASEMay 2023 = 1,370May 2022 = 1,899 Condos/Townhomes: 27.8percent DECREASEMay 2023 = 780May 2022 = 1,081 MEDIAN SALES PRICE Comparing May 2023 to April 2023 (month over month)Single-Family: 0.5 percent INCREASEMay 2023 = $955,000April 2023 = $950,200 Condos/Townhomes: 0.4 percent INCREASEMay 2023 = $640,000April 2023 = $625,000 MEDIAN SALES PRICE Comparing May 2023 to May 2022 (year over year)Single-Family: 2.6 percent DECREASEMay 2023 = $955,000May 2022 = $980,122 Condos/Townhomes: 4.5 percent DECREASEMay 2023 = $640,000May 2022 = $670,000 The Greater San Diego Association of REALTORS® is the largest trade association in San Diego County and one of the largest local REALTOR® associations in California. We help our members, who adhere to a code of ethics and professional standards, sell more homes. We also help people realize the dream of home ownership, and we are dedicated to protecting private property rights. You can follow SDAR on Facebook, Twitter, Instagramand LinkedIn.

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