The San Diego County median home price hit $530,000 in May, breaking the nominal record set last month and increasing 8.2 percent in a year, real estate tracker CoreLogic reported Wednesday.
Lack of homes for sale and slowed home construction appear to be major forces in new peaks set over the past few months leading into the traditional busy summer buying season.
In real terms, May’s numbers still are far off the peaks of the housing boom. When adjusted for inflation, the county nominal November 2005 peak of $517,500 equates to roughly $644,500 in 2016 dollars.
Alan Gin, economist at University of San Diego, said it is likely that nominal records will continue to be broken as the summer continues, especially with a strong economy and low unemployment rate.
“Construction is still lagging badly. There’s just not enough housing,” Gin said. “High demand and low supply mean higher prices.”
In May, there were 5,060 homes listed for sale in San Diego County, up by 279 from April but substantially below historic levels for the month, said the Greater San Diego Association of Realtors. There were 5,913 listings in May last year, 6,658 in 2015 and 7,029 in 2014.
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