In the days before COVID-19 entered American consciousness, home prices in San Diego climbed near record territory.
The median home price in San Diego County was $590,000 in March, about $5,000 shy of an all-time high reached last year, according to CoreLogic data provided by DQNews. The data reflects purchases that began in late January and February because homes typically take 30 days to close escrow.
Although the new coronavirus was already in the United States, it wasn't until March that concern grew and a wave of stay-at-home orders swept across the nation.
Other than the price, San Diego home sales reflected an optimism in the housing market, spurred on by low mortgage interest rates and low unemployment. There were 3,360 home sales in March, 141 more than the same time last year.
"Up until February, I think everybody still had a positive outlook about the economy," said Nathan Moeder, principal with real estate analysts London Moeder Advisors. "The other thing to remember, from December on, was (mortgage) rates were decreasing."
The mortgage interest rate for a 30-year, fixed-rate loan was 3.45% in March, said Freddie Mac, down from 4.44% at the same time last year.
Moeder said lower interest rates motivated many buyers to lock in good rates. In March, he anticipated sales will be down as many sellers take their home off the market to wait for COVID-19 to calm down and have more opportunities for showings and open houses.
"I don't think you are going to see a change in sale prices because the only people really having to sell is if they are desperate," he said.
Data from Redfin shows 12.7% of all listings were removed, without selling, from March 7 to April 3.
In a year, San Diego County's median home price had risen 6.3%. It reached a peak of $594,909 in November.
Resale condos were the hottest part of the San Diego market in March, hitting a new record high of $454,250, increasing 8.2% in a year.
Resale single-family home prices were actually down 0.7% year-over-year, with a median of $645,000. The newly built home median was $635,000, up 0.6% in a year.
Mark Goldman, an analyst with C2 Financial Corp, said he did not foresee a major drop in prices even as the number of transactions in coming months go down. He said there is a strong demand to buy in San Diego and mortgage interest rates are likely to stay low for the rest of the year.
He said work related to hospitality, tourism, conventions and travel will be hit hard by COVID-19 closures. But, it is not likely to affect the market much.
"Most of the people that work in those industries would have difficulty purchasing a home in San Diego anyway," he said. "It's a cruel thing to say, but it is a cruel reality."
Retail, leisure and hospitality jobs made up about 23.1% of the workforce last year, said a study from ecommerce site Volusion.
San Diego's neighboring counties had similar numbers for March.
The median home price in Los Angeles County hit $640,000, representing a new price peak and a 6.8% increase in a year. Riverside County's median was $405,000, up 5.2% in a year.
