San Diego Housing Market News and Analysis
February 2021 housing data - fewer houses, higher prices
Submitted by Rich Toscano on March 8, 2021 - 6:37pm
February was another blistering month for prices... even ignoring the nutty condo numbers (they are very volatile), the single family home price/sq ft popped almost 3%:
The latter, by the way, is now 19% up from a year ago. The pandemic has put upward pressure on prices in 3 ways - increased demand, decreased supply, and lower rates. As the economy opens up, all three of these things should recede to some extent. It's already happening on rates -- the 10 year Treasury yield is now pretty much back to pre-pandemic levels. Mortgage rates have followed partway; if they also return to pre-pandemic levels, that is a serious hit to affordability atop the 19% price increase.
So it will be intersting to watch how the increase in rates effects things, should it persist. Meanwhile the market is red hot. Active inventory is the lowest since I've started tracking it:
This is less a function of sales, which are fine...
...than it is of available inventory, which is in the abyss:
Nobody wants to sell. Again, I would expect that to change as things open up. In fact is seems plausible that there could be a good amount of "pent up supply," especially at these prices. Whether it's enough to meet demand is another question. Either way -- for now it's exceedingly slim pickings, which suggests higher prices immediately ahead.
Assorted charts below...
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