Real estate listings are up sharply across the country, and they’re all getting more expensive, too.
The median price for new and renovated single-family homes and townhouses has risen 15% since the middle of 2016, according to data from the U.S. Census Bureau.
In some markets, like San Diego, it’s even higher.
For the first time in almost two decades, the median home price in San Diego County surpassed $2 million for the first week of April.
In the past five years, the market has been driven by a boom in new single-unit homes and apartments, which have fueled a huge surge in prices.
This year’s price increases have already surpassed last year’s gains.
“It’s very clear the market is in a very strong position to continue to grow,” said Michael Kieslowski, vice president of the San Diego Association of Realtors.
“We’re seeing a lot of new supply coming in, as well as lots of new demand.”
The real estate bubble in the U, and San Diego’s proximity to it, have made it particularly attractive to developers.
They’ve built over a million new single family homes in the county in the past two years alone.
But that boom has also left some neighborhoods in a difficult spot.
The county is known for its booming tech industry, which has created an increasingly crowded real estate landscape for homebuyers.
Developers, meanwhile, have had to make up for the lack of new housing by filling in vacant lots, renovating old buildings and buying up lots and apartments that are underused.
“A lot of the housing that’s been created over the last few years has been for people who can’t afford to live in that particular area,” said Alex Miller, chief economist for the San Francisco Bay Area Regional Council.
“But a lot more is being created for people that are moving into the area, and it’s not really affordable for them to live there.”
San Diego County has seen a steady increase in new housing supply, but many new homes are going for $100,000 or more.
For example, the average new home price for a two-bedroom in San Francisco County last year was $1.6 million.
In San Diego City, where the housing market is relatively stagnant, there are fewer vacant lots to fill, meaning prices are rising faster than supply.
That means more buyers have to compete with developers for homes.
“There are lots of vacant lots and lots of empty lots that are being created that are just very high priced, and the ones that are really affordable to people,” Miller said.
“The market has created a glut of housing that is just going to become more expensive and more expensive as the market continues to expand,” he said.
The latest data from The Realtor.com show that median sales prices have also risen faster than the median price of existing homes.
And prices for new homes have surged even faster, up 29% in the last year alone.
That trend will continue, as more buyers choose to buy more expensive homes in areas like San Francisco.
But there are also many new buyers in the area who want to keep buying more affordable homes in their communities.
“People are looking to build up their homes and their families, but they’re also looking to put a little bit of money aside for their future,” Miller explained.
“There are some places where that may be an appealing option for people, and other places where it may be a little more challenging.”