It’s been a tumultuous year, to say the least.  With the Covid-19 pandemic continuing on, few thought that there would be huge price increases in the California real estate market.  The San Diego real estate market in particular has been on fire since the start of the pandemic.  San Diego was recently ranked #2 in the country for the largest increase in overall real estate prices (#1 was Phoenix, AZ per Forbes  https://www.forbes.com/sites/palashghosh/2021/05/25/phoenix-seattle-and-san-diego-boast-the-biggest-home-price-increases-among-us-cities-heres-why/?sh=77332d3a4e70).

We live in the Del Cerro area of San Diego (92120) and our neighborhood had tremendous home value increases over a 12 month period.  From the period beginning on 09/01/2020 up until I wrote this blog post on 09/07/2021, Del Cerro has experienced unprecedented growth at 37%! Here I have it broken down in both sales prices and sale price per square foot.

37% exceeds the entire San Diego region’s 19% gain over the last 12 months.  This speaks to the desirability of the area with great schools, parks, recreation, shopping, freeways, and perfect weather year-round!

Other useful information gained from this period is the average days on market or DOM which is 16 (this is how long a property stays on the market before finding a buyer) with a typical sale price to list price ratio of 1.02 (this means that a property will sell this much above/or below the list price of the home).  A summary of the relevant data we found is in the table below.

Personally, we are delighted to know that our investment has grown this much over the last year.  However, we realize that these types of increases are unsustainable over the long run and that this also means that many potential homeowners may get priced out of these areas as it makes it harder to find affordable housing to purchase.

With the market changing so rapidly, it’s important to hire a local appraiser and Realtor who is aware of these changes and is watching it closely so that it puts you in the best position to make the right decision.

All the information for this blog post was pulled from San Diego Paragon MLS and created by Michael Willis, Realtor and Appraiser.  Michael Willis has been a CA-certified Appraiser and Realtor for 19 years.  Please do not hesitate to contact me at any time if you have any real estate-related questions.