SAN DIEGO — Despite the COVID-19 pandemic, the housing market is hot. According to a new report by CoreLogic, San Diego home prices are expected to rise 8.3% over the next year. That's the highest increase nationwide.
Experts said it comes down to supply and demand. According to Redfin, last year around this time, there were 5,100 homes for sale in San Diego county. As of Jan. 18, 2021, there are only 3,700.
That's creating competition, with many properties selling well above the listing price.
"Everybody is just going after these properties nonstop," said realtor Greg Cummings with The Greg Cummings Group.
Cummings said since the pandemic began, he has seen the San Diego real estate market explode with more people looking to buy.
One reason is that people working from home are looking for additional space. Another is that people want to take advantage of the low interest rates.
"Money is so discounted that it is a good time to buy for that reason," said Cummings. "These rates are ridiculous."
The problem? Competition is fierce, in part because there are more buyers than sellers, many of whom are willing to pay top dollar.
"You had sellers reluctant to sell their homes because of COVID, you know," said Cummings. "They don't want people coming through. Then you throw on top of that buyers coming from areas like San Francisco, LA, Chicago because they don't have to be there anymore and for many of those areas, San Diego is a discount, so they're paying whatever prices need to be paid for these homes."
Along San Diego's coast, for example, Cummings said it's not uncommon to see homes selling for more than they're listed for.
He recently sold a home that went for six figures above asking.
"We priced it above what the comparable sales were and it went $105,000 over asking price," said Cummings. "At least 75 percent of homes if you look back over six months are selling at or over listing price. 75 percent."
According to CoreLogic, by November, home prices in San Diego County will rise 8.3 percent, making the median price for a home countywide $776,000.
Last year, single-family home prices in San Diego were up 9.5 percent. As the market continues to grow, more and more buyers are going above and beyond.
A News 8 employee who lives in Scripps Ranch got a text message from an investor, as well as a letter from a family looking to buy her home, even though it's not for sale.
"If we're very specific about what you're looking for, we're not just going sit and wait for something to come on the MLS and come onto the open market," said Cummings. "We're going to go out and find that property and we're going to use some tactics, everything from writing letters to homeowners, to making phone calls, to door knocking neighborhoods. [There's] not enough supply to meet the demand. That's all there is to it.”
Many people are asking, "Is it a good time to buy?"
Real estate experts said given the rates and the growing market, if it's a long-term investment, it may be a good idea. If it’s short term, you should give it more thought, but, at the end of the day, there is no crystal ball.
