San Diego entered Q3 with solid summer activity, but the pace slowed as the quarter progressed. July closed sales were still running ahead of last year, before falling sharply in August and remaining lower in September. Across the market as a whole, closed sales were down 17.1% year over year in August and 14.0% in September. Pending sales also slowed as the quarter went on, so by September the pullback was showing up not only in completed transactions but in the number of homes moving into escrow as well.
Pricing held up better than sales activity. The overall median sales price remained above last year throughout Q3, even as fewer homes changed hands. Detached pricing continued to post the stronger gains, while attached values were comparatively flat. By September, the median detached price was 5.8% higher than a year earlier, while attached homes were essentially unchanged. The quarter therefore ended with slower sales activity, but without the same level of downward movement in home values.
Inventory continues to explain much of the difference between the two markets. Detached inventory remained well below last year throughout Q3, although the shortage became less pronounced as the quarter went on, improving from 24.7% below last July to 12.9% below last year by September. Attached inventory moved in the opposite direction, increasing from 1.1% above last year in July to 5.8% above last year by September. Detached homes also continued to sell faster than they did a year ago, while attached homes generally took longer, giving buyers more breathing room in the condo and townhome market.
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