San Diego’s luxury market remains active this summer. Properties that show well and are priced in line with current expectations continue to sell, and we are seeing a similar pattern across the broader detached and attached markets throughout the county.
In the detached segment, year-to-date pricing continued to increase, with the median sales price rising 2.3% to $1.1M and the average price up 4.2% to $1.46M. Closed sales also increased 3.2% compared to the same period last year, while days on market moved only slightly from 34 to 35. Since our last report, sales activity has improved from essentially flat to showing clearer growth, while pricing has remained strong. This indicates that buyer demand is still consistent and the market continues to absorb available inventory.
The attached segment is seeing a different trend. Closed sales increased 6.2% year to date, but the median sales price declined 2.2% to $660,000 and the average price fell 1.7% to $804,534. Days on market also increased from 38 to 43. While more attached homes are selling, buyers have become more price-sensitive, and competitively priced properties are seeing the most activity.
Overall, San Diego is not moving as one uniform market. The luxury segment remains active without feeling overheated, detached homes continue to see both price growth and improved sales volume, and attached properties are relying more heavily on value and competitive pricing to maintain momentum.
Mortgage Rates Hit Their Highest Level in Nearly a Year
The average 30-year US mortgage rate reached 6.58%, their highest level of the year, following renewed inflation concerns and movement in the bond market. Mortgage applications have slowed as a result, which could mean fewer buyers as the market enters its typical seasonal slowdown during the second half of the year. However, pending sales remained 3.9% ahead of last year through July 10.
National inventory is holding steady at approximately 1.07 million homes, days on market are 4% longer than a year ago, and home prices are up just 0.8%. If rates remain in the upper sixes, buyer demand will be an important trend to watch. Pricing and presentation will remain critical for sellers, while buyers should work closely with their lender to understand how changing rates may affect their purchasing power.
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