Welcome to San Diego Blog | March 3, 2010
Downtown San Diego Real Estate Market Absorption Rates
The following charts represent time proven methods of anaylzing any real estate market. In this article, we are looking at the market absorption rates which show us the averages for Downtown San Diego Condos, lofts and townhome sales for periods including the last 3 months, 6 months and 12 months. The twelve month average paints a good picture of what is happening in the downtown San Diego Real Estate market overall, where the 3 month average gives us a look at current trends in the Downtown San Diego property market place
Trends Real Estate Downtown San Diego 92101
As you can see from the above chart, real estate sales Downtown San Diego are relatively stable. As most people would expect, the majority of the sales taking place are at the lower end of the market on condos, lofts and homes that are below $450,000. The clear explanation for this is that this is where financing is most readily available and with the most favorable of terms.
In the price ranges from $150k to $449k, we can clearly see that the market is balanced and remains healthy. The 3 month market trend-line is following along with that of the 12 month average so we would expect to see the market to continue at this same pace. If you are planning to sell a condo in this price range, there is only approximate supply of 3.75 months inventory. This is good news for Downtown San Diego Condo sellers because any supply less than 6 months is considered to be a sellers market.
The Numbers Say it all | 92101 Condo Trends
Moving on to the $450k-$600k range, the twelve month market average and 3 month trend are dead on so we can expect a stable projection for the next few months. You will notice the number of sales in the prices above $450k are about half that of below $450k. Again, this is an indicator of what people can qualify for or what cash investors are willing to spend on real estate right now.
In all Downtown San Diego properties priced above $600k, you will notice that the market trends are showing sales heading down. This would indicate that the luxury condo market may have still not “hit bottom”. We expect to see some great deals on luxury condos over the next 12 months. Bayside Condos San Diego are cutting some great deals because Bosa Development understands that the luxury market is still heading down and they are trying to be aggressive and make sales. One of our associates just represented a buyer of a one bedroom condo listed in the mid $500k range and was able to negotiate over $100k off and include hardwood floors as an incentive.
This is clearly an indicator that deals will be negotiated on luxury condos in 2010. The question is, who will be negotiating the purchase of your condo? If you want buy a great condo at the lowest price, let us negotiate a deal for you. Our inside information is the ammunition we use to represent our clients best interest.
Give us a call and let’s start a conversation about what you have in mind regarding San Diego Real Estate. 619-309-8011