Median Sale Prices Are At Their Highest Level In A Year

The Big Story

Quick Take:

Median home sale prices hit their highest level in a year, as the spring rally has now carried prices above where they were at this time last year.
Inventory levels have plateaued heading into the summer, with a slight month-over-month decline in June.
Existing home sales posted their strongest year-over-year gain in months, though they pulled back slightly from May's pace.

📈 Home Prices Hit a One-Year High

Home prices continued their upward momentum in June, with the median sale price reaching $440,600—the highest level we've seen in the past year. This marks the fifth consecutive month of price increases, showing that buyer demand has remained resilient despite higher borrowing costs.

Mortgage rates edged up slightly to 6.43%, pushing the median monthly mortgage payment to $2,274. While that's still lower than a year ago, rising home prices are beginning to offset the affordability gains buyers enjoyed earlier this year. If this trend continues, affordability could become more challenging as we move through the summer.

🏠 Inventory Levels Are Stabilizing

After several months of steady growth, inventory appears to be leveling off. Active listings remain slightly higher than last year, but both inventory and new listings dipped modestly from May, suggesting the spring surge in supply may be slowing.

For buyers, inventory is still healthier than it has been in recent years, offering more choices than we've seen for quite some time. However, if demand stays strong while new listings taper off, the market could tighten again later this summer.

👀 Buyers Remain Active

Existing home sales were 4.09 million, up 4.07% from a year ago, showing that buyers are more active than they were last summer. Although sales slowed slightly from May, that's typical for this time of year.

Lower mortgage rates compared to last year, improved inventory, and continued price appreciation are encouraging buyers to act sooner rather than later. The key question will be whether affordability can keep up if rates and prices continue to rise.

⚖️ Sellers Still Have the Advantage

The market continues to lean in favor of sellers. Buyer demand has strengthened while inventory has stopped growing, helping keep supply relatively tight.

If mortgage rates remain stable or move lower, competition could increase again. However, if affordability continues to decline, the market may gradually shift toward a more balanced pace.

🌴 San Diego Local Take- Prices Continue to Rise

San Diego's median home price reached $1.059 million, marking its eighth consecutive month of year-over-year price growth. While appreciation has been modest, it reflects the continued strength of the local market.

🏠 Inventory Has Returned to Normal

The inventory surplus that existed earlier this year has disappeared. Active listings are now 6.16% lower than a year ago, indicating that supply and demand are becoming better aligned.

⏱️ Homes Are Selling Quickly

Buyer demand remains strong, with the typical San Diego home selling in just 14 days—about half the time it took at the beginning of the year. Well-priced homes continue to attract buyers quickly.

⚖️ A Healthy, Balanced Market

San Diego currently sits at 3.0 months of inventory, placing it in balanced market territory. Even so, market conditions remain slightly stronger than they were a year ago, giving both buyers and sellers opportunities as we head into the second half of the year.