Are San Diego or Inland Empire the riskiest housing markets in Southern California? (2024)

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Are San Diego or Inland Empire the riskiest housing markets in Southern California? ›

Fitch found one local problem spot: San Diego. Its home prices, up 6.2% last year, were calculated to be 15% to 19% too high at 2023's end, by this math. That's the second-highest level of risk in the study. Contrast that to Los Angeles and Orange counties, where prices rose 4.9% last year.

In Los Angeles County, the average home price in April was $890,516, an increase of 1.4% from March and surpassing the previous record, set in June 2022. The six-county Southern California region climbed above its 2022 average home price record in March. It set another all-time high last month, reaching $875,388.

Market experts say the sharp increase is because of many factors. “It's basic supply and demand. When supply is down, prices go up. Then there's a lot of competition for the houses that are on sale, and that drives the prices up,” University of San Diego Professor Alan Gin, Ph.

San Diego, CA housing market

In May 2024, the median listing home price in San Diego, CA was $999.9K, flat year-over-year. The median listing home price per square foot was $738. The median home sold price was $980K.

Similarly, California (74.6) is an expensive state with high levels of real estate activity. San Jose, Oakland, and San Diego rank as the top three hottest housing markets among large cities—defined as cities with populations of 350,000 or more.

A Zillow study revealed the median income should be $273,613 annually to comfortably afford a typical home in San Diego. Another study showed it could take a couple more than a decade to save for a down payment on a home and up to five decades for single people. “That's a lot of money.

Analysis shows the median sale price for homes in San Diego has seen a notable increase. Median Sale Price: $925,000 as of January 2024, indicating a resilient market trajectory. Year-Over-Year Gain: Approximately 12.1%, reflecting sustained growth.

San Diego is a Sellers Housing Market, which means prices tend to be higher and homes sell faster.

Where is the cheapest place to live in San Diego? ›

2022 Downtown San Diego Condo Building Average Price per Square Foot. What was the average price per square foot for a downtown San Diego condo in 2022? The average price per square foot for a downtown San Diego condo in 2022 was $786 with the average selling price being $901,525.

The revised California median home price forecast is for a rise 0f 6.2% to $860,300 in 2024, a -1.5% drop this year to $810,000 from $822,300 in 2022.

Average Home Prices: The average median home price in California is $739,100, up by 6.5% YoY. In 2024, experts predict the median sale price will increase due to the tight inventory. Currently, the sale-to-list price ratio is at 99.4%, with an incline of 1.3 pt YoY compared to September 2023.

Predictions for 2024 and Beyond: Looking ahead, the market is expected to continue its growth, albeit at a potentially slower pace due to economic pressures such as interest rates and global economic trends. However, the shortage of housing and ongoing demand are likely to keep prices on the higher end.

The rising rent prices and number of tenants looking for a rental in California prove that this state is a goldmine for landlords. It's no surprise that California's real estate market is perhaps the most expensive in the nation. Nevertheless, it also boasts some of the lowest property taxes in the average year.