San Diego Market Update: May 2020

by Steve Welty, Broker/Owner of GL Realty & Investments and Good Life PM

Sales Market

  • 31.8% fewer homes for sale and still many buyers!
  • Available homes on the market down 31.8%
  • As of May 3, there were 5,166 active listings in San Diego County, down from around 7,250 at the same time last year.
  • Most sellers are wanting to take homes off the market to wait out the crisis.
  • Still strong buyer demand. Properly priced homes are seeing multiple offers.
  • The cost of a San Diego County house hasn’t changed since COVID-19, with the median price is still around $590,000.
  • Year over year median sale price has increased 3.3% 

 

Rental Market

  • Still a high demand market for most properties
  • Most properties are still renting in 1-3 weeks, but at about the same prices as last year.
  • Typically they can be rented at a 2-5% increase year over year, but it seems the market rents are softening.
  • Luxury properties (mostly downtown condos) are slower than ever. We're seeing a significant drop off in both marketing activity and prices.
  • COVID-19-related rental payment issues seem to have leveled off. Most tenants who didn't pay rent in May had already notified our offices back in March. Only a few properties that paid in April, didn't pay in May. There does not seem to be any pattern in regards to the types of properties (houses, condos, apartments) or the rent range and the tenant's ability to pay, but most of those tenants worked in the service and hospitality industries.
  • The Judicial Council has ordered that no summons will be issued until after September 1st for unlawful detainers. Then the resident has to be served once you get a summons/case number. Thereafter, it is likely that there will be a huge backlog of cases.
  • PENDING BILL: AB 828; It will require Landlords to reduce tenants rent by 25%. Yikes! Landlords can help fight this bill by emailing a letter to your legislator here.

 

If you are interested in selling your property in the near future, now may be the time. We are preparing complimentary sales analysis for all interested investors, which includes the 5 pieces of information sellers need to know before making a selling decision. Contact us at sales@glrealtysd.com