San Diego Home Prices Surge in June 2024 Despite High Mortgage Rates

Author: SANCO Development

Published: 8:02 PM PDT September 9 , 2024

Updated: 8:02 PM PDT September 9, 2024

As the housing market in San Diego continues to evolve, June 2024 saw a notable increase in home prices, even as mortgage rates remained elevated. According to data from the California Association of Realtors (CAR), the median price for a home in San Diego County rose to $1.05 million in June, marking a 2.8% increase from May and a significant 10% jump compared to the same period last year.

Key Highlights:

• San Diego’s Median Home Price: $1.05 million in June, up from $1.02 million in May.

• Annual Increase: A 10% rise from June 2023, reflecting strong demand and limited housing inventory.

• Mortgage Rates: The 30-year fixed-rate mortgage stayed above 7% for much of May, adding pressure on affordability.

What’s Driving the Increase?

Even with mortgage rates hovering above 7%, San Diego’s housing market remains resilient, largely due to a combination of high demand and a limited supply of homes. Prospective buyers are still entering the market, looking to secure properties before prices rise further. The ongoing shortage of available homes for sale has continued to push prices upward, creating a competitive environment for buyers.

As a residential construction company, we recognize the impact this has on San Diego homeowners and potential buyers. The demand for new builds, home remodels, and property upgrades is at an all-time high, as residents aim to capitalize on rising home values.

Statewide Trends in Context

San Diego's housing market isn't the only one experiencing shifts. Across California, the sales pace of single-family homes slowed slightly in June, dropping by 0.8% from May, while the statewide median home price also saw a small dip of 0.8% from $908,040 to $900,720. However, on a year-over-year basis, California’s median home price was up 7.5%, signaling sustained growth despite fluctuating sales numbers.

According to CAR President Melanie Barker, the housing market may gain more momentum in the coming months if mortgage rates stabilize. With interest rates showing signs of easing since February and more homes coming onto the market, buyers may be encouraged to take advantage of lower borrowing costs later this year.

What Does This Mean for Homeowners and Investors in San Diego?

The continued rise in home prices presents a unique opportunity for homeowners looking to invest in their properties. Whether it’s through remodeling, building an Accessory Dwelling Unit (ADU), or flipping homes, there’s potential to maximize returns as property values remain strong. With San Diego’s home prices outpacing the state average, making improvements to your property can further increase its value.

For prospective buyers, it's essential to weigh the benefits of purchasing a home sooner rather than later, as prices may continue to climb in the near future. While high mortgage rates may pose a challenge, the potential for long-term appreciation in San Diego’s housing market makes it an attractive investment.

Looking Ahead

As we move into the second half of the year, San Diego’s housing market is expected to remain competitive. Whether you're looking to buy, sell, or invest in a property, staying informed and making strategic decisions will be key in navigating this dynamic market.

If you're considering a home renovation or new construction project to boost your property's value, now is the time to act. With our expertise in remodels, ADUs, and home upgrades, our construction company is here to help you take advantage of San Diego’s thriving housing market. Contact us today to learn how we can help you make the most of your home investment.