SCAS note: Remember San Diego is tourism driven. How long can Ab&b go unrented? How long until the tourist return? How long can tourism employees afford to live in SD? How many will still have jobs after the lock-down ends? Many factors will be driving home prices; not just inventory or interest rates.
San Diego County’s median home price continued to rise in February to $587,000, reflecting optimism in the home market before the coronavirus crisis.
Sales in February represent purchases that began in late December and January, meaning concerns over the virus were hardly a blip on the American radar.
There were 2,835 home sales in February, a 14 percent rise from the same time last year, said CoreLogic data provided by DQNews. Also, the median price was up 6.8 percent in the 12-month period, nearing record highs.
Jordan Levine, senior economist for the California Association of Realtors, said he expects prices to decrease in San Diego and throughout California.
Some San Diego analysts have pointed to the high demand for homes in the area and low inventory as unlikely to change. But, Levine said the demand factor could weaken if the virus and the economic situation gets worse.
He said San Diego was on strong economic footing going into the crisis, which led to a big demand/home inventory imbalance. But, he said it’s hard to say if that level of demand will remain.
“If folks start being laid off,” he said, “you start to see that demand erode.”