The Market is Normalizing
Housing data shows home sales and prices continue to normalize in an extremely competitive environment. However, a resurgence of COVID-19 across the state has increased uncertainty about the broader economy moving forward and could be muting the recent uptick in new listings as public health concerns return to the fore for would-be homesellers. REALTOR® optimism in California has also moderated in recent weeks. Still, home sales remain above pre-crisis levels and buyer demand remains strong—even as the level continues to normalize after reaching 15-year highs last winter. – California Association of Realtors
International Buyer Activity
NAR’s 2021 Profile of International Transactions in U.S. Residential Real Estate surveyed members about transactions with international clients who purchased and sold U.S. residential property from April 2020 through March 2021.
- International buyers purchased 107,000 U.S. residential properties totaling $54.4 billion from April 2020–March 2021, down 31% and 27%, respectively, from the previous year and the lowest volumes since 2011.
- China, Canada, India, Mexico and the United Kingdom were the top five countries of origin by U.S. residential sales dollar volume. The annual dollar volume for foreign buyers from China, Canada and Mexico all dropped by at least 50%.
- The top U.S. destinations for foreign buyers were Florida, California, Texas, Arizona, New Jersey and New York.
“The big decline in foreign purchases of homes in the U.S. in the past year is no surprise, given the pandemic-induced lockdowns and international travel restrictions,” said NAR Chief Economist Lawrence Yun.
“Yet, even with the absence of foreign buyers, the U.S. housing market strengthened solidly.”
In recent months, as international travel has begun to recover, those international buyers are starting to come back. With home prices higher than they were pre-pandemic, but still lower than comparable home prices in places like Hong Kong, the US is still a highly desirable place to invest.
94% of Metro Areas Saw Double-Digit Price Growth in Second Quarter of 2021 according to a recent report by N.A.R.
Locally the average sales price for a detached single family home in San Diego County is up 24% from last year and the median sales price is up 21%.
Even as more inventory hits the market and as we see some seasonal slowing, experts are not expecting a big price correction. CoreLogic forecasts 3.2% growth in the next year, a definite slow from the crazy increases of the last 12 months but continued positive growth.
The Young are Moving In
Forbes recently reported on the influx of young buyers in our luxury markets. As one of the top tech, life sciences, bio tech, and telecom hubs in the nation, San Diego is attracting a pipeline of young, well educated professionals in these sectors. Our lifestyle is also bringing in many young entrepreneurs across various industries from fitness and beauty to food and beverage.