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San Diego home prices rose 23 percent in one year, report says

home for sale sign
Posted at 4:43 PM, Oct 07, 2021
and last updated 2021-10-07 20:20:36-04

SAN DIEGO (KGTV) — Home prices in San Diego County skyrocketed 23 percent in the last year, a new report from real-estate tracker CoreLogic says.

CoreLogic's Home Price Index, released Tuesday, measures repeat home sales in the county. From August 2020 to August 2021, it showed home price gains in the county outpaced those in Orange and Los Angeles counties.

"We just have to sift through the offers and see which ones we want to take," said Mark Powell, a Realtor with Discovery Property Group.

Powell has three homes on the market, and last week sold a 2,200 square-foot home in North Pacific Beach for about $1.6 million, double what it went when it last sold in 2009.

Low supply continues to be the key factor pushing up prices. As of this week, the San Diego Realtors Association says there were 2,511 homes on the market. That's down 30 percent from this time a year ago, and 60 percent from two years ago, before COVID hit.

CoreLogic says the median price in San Diego County was $725,000 in August.

"San Diego continues to see a higher rate of appreciation compared to the neighboring Orange County and Los Angeles as home prices in San Diego are still relatively lower than in the two counties to the north," said Selma Hepp, CoreLogic's deputy chief economist.

"In general, more affordable areas of Southern California have seen more in-migration from the coastal regions and stronger appreciation rates over the last year than those more expensive areas."

Powell noted the demand increased even more amid the pandemic because people who live in higher-priced areas like New York, Los Angeles, or San Francisco can move to San Diego and work remotely. He said prices will be high until San Diego sees more homes built, but developers are typically not producing half of the roughly 20,000 new housing units needed per year.

The state recently passed a series of laws, including Senate bills 9 and 10, which aim to increase housing supply by allowing more homes on lots in single-family neighborhoods and near transit centers.