In May 2017, 3,351 homes were sold through the MLS in San Diego County. This is 16% more sales than the prior month and up 7% year over year. As of June 1, 2017 there were 5,366 homes available for sale and 5,056 pending home sales. Inventory fell slightly from ~1.7 months supply of homes on May 1st to 1.6 months on June 1st. A falling supply of homes is normal as the spring selling season progresses. What remains abnormal about this continued housing recovery is the absolute level of housing supply. 1.6 months, 2 months, 3 months—none of these kind of inventory levels represents much supply.
The median priced detached home sold for $615,000 in May 2017 vs. 599,900 in April 2017. This is up 8% year over year as the median priced detached home sold for $568,000 in May 2016.
There is an interesting, if subtle trend going on in our market. The number of homes (or units as we say) is trending up. The trend, represented in the graph below, is a little hard to see because the number of units sold became distorted in 2013 as private equity firms snatched up homes. These private equity firms represented a new buyer in the market and therefore new demand, pushing up the number of transactions. Try to look through 2013’s jump in the number of units sold as you look at the chart below.
Bob Flynn, June 2017