Across both San Diego and Orange County, a hot luxury real estate market continues, as the luxury home market is the top 10% of all closed sales.

 

With an average sales price that continues to climb, and 6 out of 10 homes selling above asking price, what used to be considered “luxury” has now been redefined.

Luxury in San Diego County is currently defined as $1.25M but is set to move up to $1.5M in 2022, and it’s currently defined as $1.5M in Orange County but set to move up to $2M in 2022.

Although luxury may be hotter than ever before, it is expected to slow down slightly over the next few months. It takes a little bit longer to sell homes priced above $2 million. We are seeing the real beginnings of price reductions when homes are grossly overpriced. Buyers are wary.

Low-interest rates hover around 3% and continue to feed the market, but as fewer homes enter the fray, expect demand to drop slowly until Thanksgiving and reach its lowest levels at the end of 2021.


If you’re looking for more information about the Q2 real estate performance in many of Southern California’s most in-demand markets, click here to view the Pacific Sotheby’s International Realty’s IN FOCUS reports.

Whether you are a first-time home buyer, an interested seller, or building your investment portfolio, our reports are your best resource to make smart real estate decisions today.

To find your perfect home or sell your current residence, please visit pacificsothebysrealty.com to connect with one of our global real estate advisors. 

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