Beach Cities Real Estate

Homes on Kenwyn Street, Oceanside

As housing costs push more people out of San Diego, those lucky enough to own a home or rental property aren't rushing to sell.

A study of the state's 30 largest cities by Point2 Homes, a real estate listing website, found that San Diego property owners in 2022 kept their homes for six years before selling, the third longest tenure. In Oceanside and Chula Vista, some of the more affordable places in the county, people are holding out longer.

The company used its own data from local home sales that occurred in 2019, 2020, 2021 and 2022. It isn't clear how many of the properties were owner-occupied – rather than owned by investors - only that people are waiting longer to sell them.

"What we wanted to determine was how long owners held on to a home before selling, and especially how that has changed compared to pre-pandemic times," said Carmen Rogobete from Point2 Homes.

The study found that, compared to 2019, "the last year before the pandemic brought about the avalanche of change people are still trying to adapt to," San Diego property owners dragged their heels when selling.

This change has happened despite the real estate axiom that homebuyers should wait at least five years to sell, to account for all the transaction and moving costs involved. (Since home prices usually keep going up). Home prices surged throughout the pandemic and are currently slightly lower than a year ago, the report says.

Although prices have tilted towards buyers, with homes taking almost twice as long to sell by January 2023 compared to last year, they are still out of reach to many. According to the Greater San Diego Association of Realtors, the median price of sold homes is $767,000.

The average time an owner kept their home in the 30 cities was between 2.3 years (Elk Grove) and 9.3 years (Salinas, one of the more expensive areas for housing). The study notes that many Californians may be selling after a short period (as in the Sacramento area, which includes the suburb of Elk Grove)) and leaving the state.

Among other findings, condo owners kept their units longer than those with single family homes. And smaller homes weren't quick to be swapped for bigger ones; their owners didn't budge for five years - almost as long as the owners of mansions.

According to the study, Californians live longest in homes that are at least 5,000 square feet or 500-1,000 square feet.

Newer houses, less than five years old, were sold after only about two years of purchase, while people held on to middle-aged homes more than twice as long. "This could be because new homes are usually starter homes," the report says - which are typically cheaper.

"As such, they’re extremely attractive to first-time buyers, who are willing to sacrifice location and even square footage for a lower price."

In San Diego, there aren't nearly enough of them to go around.