Welcome to San Diego Blog | July 7, 2010
Market Absorption Rates for Condos & Lofts Downtown San Diego
Downtown San Diego’s 92101 zip code continues to see the market heat up for condos priced below $450,000. The market trends show that the sales volume is up for lofts and condos in this lower priced segment and it is looking like it is more of a sellers market in this price range as long as the HOA dues are not too high. In this price range, we only see about a 2.5 to 4 months supply of Downtown San Diego Condos and lofts. With this limited inventory and a growing number of buyers in this price range, there is a likelihood of stabilizing prices and the possibility of a slight rebound on prices.
The trends change as we move into the $450,000-$599,999 price range. This market seems to be remaining stable, however there is currently an 8 months supply of homes in this category and this would be indicative of a buyer’s marketplace.
This price category is really the where most of the average 2 bedroom units fall into. What concerns me is that we are in what are typically our busiest months of the year and the 3 month trend is unchanged fromt the 12 month average. This could either indicate we are going to have a very slow fall or could be on account of many buyers waiting on the sidelines for the possibility of a decline in prices.
For the the Luxury condo category, we are seeing a decline to inventory. With just under a 2 year inventory, it is still a buyer’s market. There are amazing deals to be had on luxury condos in downtown San Diego right now. Litigation, short sales and foreclosures add to a market segment that many can’t manage to qualify for loans. All of these factors added together equal great deals for those who are in a position to buy.
Interest rates are amazing and great deals are here. Will you be one of the fortunate buyers to score an amazing buy on a luxury property Downtown San Diego? Let us show you Downtown San Diego’s best buys! Contact us for valuable insight into this market.