Ocean Beach San Diego real estate is one of a kind. Iconic Newport Avenue has elements of bustling night life, small town Main Street, hippy nostalgia, bustling tourism and, of course, the classic southern California beach town. It’s a San Diego neighborhood that vigorously protested the potential arrival of a Starbucks when they first planned a store there. Despite some of its hippy past and anti-corporate vibe, Ocean Beach (OB) is also home to exclusive, multi-million dollar estates located in Sunset Cliffs. Whether you are considering buying or selling a home in Ocean Beach, this article will detail the key metrics you need for clear insight into Ocean Beach San Diego real estate market conditions. All the stats and graphs here are updated daily to deliver the most relevant and timely real estate market information to you.
If you are looking for Point Loma-specific market information, please visit this sister article on Point Loma San Diego San Diego real estate. You can also find broader information about both Point Loma and Ocean Beach in my Point Loma real estate neighborhood guide.
Ocean Beach has a diverse mix of properties ranging from apartments, condos and tiny beach bungalows to extravagant custom homes. Although there was a time when OB and the 92107 zip code was known for being an affordable place to live at the coast, affordable housing is harder to find there now. Let’s dive into Ocean Beach homes as I detail home prices, and some of the supply and demand stats that define the real estate market here.
Ocean Beach San Diego Real Estate Home Prices
As you evaluate Ocean Beach San Diego real estate, one key statistic is the value of homes in the area. For buyers, information on average and median home sales prices can provide a rough gauge on the affordability of Ocean Beach San Diego real estate vs San Diego home prices in other neighborhoods. For sellers, the average price per square foot can provide a rough range on what a seller might expect to sell for.
Ideally, sellers will want a detailed comparative market analysis by an experienced Ocean Beach real estate agent. That analysis should look at homes most comparable to yours, vs the more general statistics seen here. The average and median home price along with price per square foot information is broken down into two categories: 1) single family detached homes, and, 2) attached homes including townhomes and condos.
Ocean Beach – Average Home Price
Ocean Beach – Median Home Price
Ocean Beach – Average Price Per Square Foot
Ocean Beach San Diego Real Estate – Home Supply
Many Ocean Beach San Diego real estate investments have faired well over the long term. Longtime homeowners in OB have enjoyed substantial appreciation in home values over the decades. Despite the favorable track record historically, market conditions have still varied. One key component of determining the type of market we are currently seeing in Ocean Beach San Diego real estate is the level of supply. Taking a look at both the number of active listings along with the inventory (measured in months) provides insight into the type of market we are experiencing in OB.
The months of inventory charted here is also known as the absorption rate. Our data provider defines this as: “Active Listings at the end of a given month, divided by the average monthly Closed Sales for the last 12 months.” In essence, if there were suddenly no more listings, the inventory level would describe how many months it would take for existing demand to purchase all the remaining listings.
Although the number varies, some economists will use a six month threshold for evaluating housing supply. Anything shorter than six months of inventory is viewed as a seller’s market. Anything greater than six months is seen as a buyer’s market. For some context, the last 15 years has had significant variation in inventory levels. We have seen inventory spike to over ten months in 2007-2011 during the great recession, and dip to unheard of lows close to one month in the early part of 2021. With this six month threshold equating to a “healthy” mix of buyers and sellers, OB and San Diego in general have spent the majority of recent years in seller’s market territory.
Ocean Beach – Number of Active Listing
Ocean Beach – Inventory
Ocean Beach San Diego Real Estate – Market Time and Pending Sales
With tight inventory more commonplace, it is not surprising that the time on market goes down when inventory is low. When you combine low inventory with high demand such as that from historically low interest rates, some very short market times can result. In times of higher inventory and/or reduced demand, market times tend to increase. It is also common that the more expensive the home, the longer the market time. There are fewer buyers of multi-million dollar luxury homes vs buyers of homes closer to the median home price in San Diego. The Active Market time you see in the graph below is defined as the median number of days between when a property is listed in Ocean Beach and when an offer is accepted in a given month.
Ocean Beach – Median Active Market Time
Many real estate stats focus on closed sales. Closed sales are vital from many perspectives, especially in terms of determining actual market prices. However, closed sales are a glimpse into the recent past rather than peering into the future. Pending sales, as shown here, are simply a count of the properties on which contracts have been accepted in a given month. These pending sales can sometimes provide insight into where a market is headed next.
Ocean Beach San Diego Real Estate – Pending Sales
This article on Ocean Beach is part of a series focusing on statistics and data from specific San Diego neighborhoods. If you would like to review more general market information, please visit my article on the broader San Diego real estate market. I am also happy to provide more insights into your specific San Diego neighborhood’s real estate market upon request.
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