SAN DIEGO — Home prices in San Diego County are expected to grow 8.3 percent through November 2021, according to a new forecast.
Real estate tracker CoreLogic says by November, the median price for a single family home will be $776,500, up from $717,000 in November 2020.
Prices have increased amid the pandemic as fewer San Diegans sell homes. Demand, however, remains high, spurred by record-low interest rates. The average rate for a 30-year fixed mortgage is currently 2.67 percent.
Realtor David Spiewak said he had his best year ever, despite losing about six weeks during the first Coronavirus shutdown. He said he sold multiple homes tens of thousands of dollars above asking price, including a home in Clairemont for $40,000 above asking, and a bungalow in South Park $36,000 above asking.
"It's like a perfect storm of events happening. It truly is a seller's market because inventory is so low," Spiewak said.
The 8.3 percent appreciation rate is more than five times the current inflation rate. Realtor Gary Kent said that pace is likely not sustainable, and expects it to soften once coronavirus restrictions lift and more people list their homes. Still, he said San Diego will remain a seller's market, with healthy appreciation.
"Not many people are selling, and to support the economy, rates are so low everyone wants to buy," Kent said.
The San Diego Association of Realtors reports there are currently 3,800 active listings in the county, down 46 percent from a year earlier.