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San Diego Has Big Share of Million-Dollar Homes

San Diego and California in general can blame the booming high-tech industry for its soaring housing costs, according to Lending Tree

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Courtesy of Willis Allen Real Estate

When it comes to million-dollar homes, San Diego has more of them than just about any other city in the country, according to a national mortgage lending company.

In only three of the 50 largest metro areas do million-dollar homes comprise a bigger share of the housing market than in San Diego, according to Lending Tree, an online mortgage lender.

Those pricey homes valued at $1 million or more accounted for 14.1% of the overall market.

Still, San Diego trails San Jose, California, where an astounding 56.5% of homes sell for $1 million or more with the median price of a single family home pegged at nearly $1.1 million.

San Francisco is not far behind with 43.4% of homes going for $1 million or higher and the median price of a home $1.19 million.

Trailing in third is Los Angeles where 19% of homes are valued at or above $1 million and the median price of a home is $650,000.

At the other end of the Lending Tree home price chart was Cincinnati, where a mere 0.7% of homes are priced at $1 million or more and the median price is a bargain at $173,500.

Nationally, it’s still a rarity to find million-dollar homes, according to Lending Tree.

“Only 5.86% of the owner-occupied homes in the nation’s 50 largest metros are valued at $1 million or more,” Lending Tree reported.

High-Tech and Housing Prices

San Diego and California in general can blame the booming high-tech industry for its soaring housing costs, according to Lending Tree.

The only metro area outside of California to make Lending Tree’s top five list was Seattle, also known for its high-tech companies.

About 11.3 percent of the homes in Seattle are valued at $1 million or more and the median price is $487,400.

Judging by the latest figures from the Greater San Diego Association of Realtors, the median price of single-family homes is creeping ever closer toward that million-dollar figure.

The association reported that home prices were on the rise again in October, with the median price of resale homes up 3.1% over September to $665,000 from $645,000.

The association compiles monthly information on home sales from the Multiple Listing Service.

The most expensive San Diego County home sold in October was a 6,115 square-foot Del Mar number with five bedrooms and seven bathrooms that went for $10.5 million, the association reported.

Townhomes

Just as the prices for single family homes jumped in October, condominiums and townhomes showed an increase of 2.6% over September with the median price rising to $429,000 from $418,000.

The number of homes sold dropped 2% in October from September from 1,862 in September to 1,771 in October.

That was still 1.9% higher than in October 2018, when 1,738 homes sold.

Similarly, the number of condominiums and townhomes sold in October was down 2% from September.

Year-over-year, the sale of condos and townhomes was down nearly 4% from October 2018.

Mortgage Rates

“Rising prices and low inventory are still a burden on our state and local housing economy, but mortgage rates that are approximately 1% lower than at this time last year should give some lift to buyer demand,” said association President Kevin Burke.

According to a recent report by Homelight, an online home selling platform, next month is the absolute worst time of year to list a home for sale in San Diego County if getting the best price is the goal.

The company said it takes about two months on average to sell home in the county, which means that homes listed in December will likely close in February.

That matters because Homelight reported that home sales that close in February sell for about 5.7 percent below the annual average.

Listing in April would lead to a June closing at a price that is 2.9 percent above the annual average, according to Homelight.

 Additional stories from the San Diego Business Journal are available here. Sign up for their free daily email newsletter.

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