In January, San Diego home prices were increasing by 5.1%, faster than anywhere else in California. 2020 was shaping up to be a promising year for real estate. Unfortunately, the outbreak of the coronavirus is changing everything.

Below, we look at the going prices for San Diego homes right now and how the price of a San Diego home might be impacted in the future.

The Current Price of a San Diego Home

Currently, the middle of the road price for a single-family home is $630,000. For that amount, you can get a solid three bed, two bath house in a great location with room to expand.

For around $200,000 you can get a home farther out from the city. These houses have a suburban California feel to them, rather than the modern southwest aesthetic that is popular closer into the heart of the Gaslamp Quarter.

Like any city in California, the largest mansions cost upwards of $30 million – but San Diego has large homes for right around $2.2 million. These are the historic homes in nice neighborhoods that give you a sense of living in San Diego’s history.

If these are the options you’re interested in, there are ways to sell your house for cash to buy into these neighborhoods.

The Impacts of COVID-19

Unfortunately, it’s hard to predict just how novel coronavirus will affect San Diego’s housing market.

Certain Californian cities, including San Diego, are at a higher risk of facing a recession. This is due to several factors, including the number of people employed in leisure fields, the average debt-to-income ratio, how many people are employed in air transportation, and the number of COVID-19 cases.

Leisure and air transportation jobs are the most likely to face the brunt of COVID’s recession as people scale back to just essential purchases. In addition to selling, people are also more likely to pause their home search or construction during this time, which can lead to a housing freeze in the market as people shy away from buying or selling.

Areas that have a lower population density and have a lower reliance on air transportation employment will likely face less of a recession with a more stable housing market. San Diego’s home prices may drop a bit, but people will also likely pull their houses off the market to wait out the recession, so homes are likely to remain in the $500,000 – $1,000,000 range.

The good news is that any recession caused by COVID-19 likely won’t be similar to the 2008 recession, which was caused by subprime mortgages. This time the main factor is a global pandemic. Once the pandemic passes, it will be easier for the housing market to pick back up.

Entering the Housing Market

Buying a new home is always a big decision. It can be nerve-wracking to consider buying or selling your home right now with so many unknown variables at play.

San Diego homes are going to remain expensive, even during a recession, but there are options out there to help you make sure you make the best investment possible.

Check out our site so that we can help you find the perfect home.