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Home prices rise again after two month decline

A "for sale" sign is pictured in front of a house in Chula Vista in this file photo from July 21, 2020.
Alexander Nguyen
A "for sale" sign is pictured in front of a house in Chula Vista in this file photo from July 21, 2020.

The median price of a home in San Diego County moved up to $740,000 in September.

Let’s start with a decades-long truism. San Diego is a nice place to live and the price of homes here reflects that.

“Got nice weather, and actually the economy is doing pretty well and so a lot of people then like to live here.”

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There you have it from USD Economics Professor Alan Gin. It’s a matter of supply and demand. So, then why the downturn in prices over July and August? Turns out that can also be chalked up to supply and demand.

“There’s been more supply of houses on the market, more houses were made available. And so when supply increases, then that puts a little bit of downward pressure in terms of prices," Gin said.

Home prices rise again after two month decline

Gin said that extra supply has now been gobbled up, so in September, prices started climbing again.

The latest data from CoreLogic/DQNews spelled it out. The median price for a home in San Diego County rose to $740,000 in September. Prices are up nearly 14% this year, but the median price is still off of the peak of $749,750 reached in June.

Home prices rise again after two month decline

Professor Gin said he thinks prices will continue to rise for the foreseeable future, especially if interest rates stay low. As an economist, that concerns him.

“That could lead to people being priced out of the region. They might have to move as a result of that... That could have an adverse effect on the economy in the sense that we cannot attract high quality workers to work here because of the high cost of housing," he said.

RELATED: First-Time Homebuyers Struggle As San Diego County's Median Home Price Soars

Plus, Gin said businesses that are able to attract quality workers often have to pay such high wages that they become less competitive. He said leaders must do more to deal with the issue, to make living here in this beautiful corner of the world, at least somewhat affordable.