Welcome to San Diego Blog | May 7, 2012
Downtown Condo Market
Real Estate Downtown San Diego…
…is on fire right now. We are at the first point in 6 years where we have less than a 6 months supply of inventory for all price categories below $1 Million. Why is this significant? A 6 month inventory is considered a balanced supply of homes as defined by economic models that are used in American Universities and Institutions.
|$150,000-$299,999||Closed Sales in the past:||12 month||6 months||3 months|
|Number of Homes Sold||315||141||67|
|Average # Homes Sold per Month||26.25||23.50||22.33|
|Current Homes Active on Market||19||19||19|
|Months of Supply||0.72||0.81||0.85|
|Days of Supply||22||24||26|
|$300,000-$449,900||Closed Sales in the past:||12 month||6 months||3 months|
|Number of Homes Sold||253||107||66|
|Average # Homes Sold per Month||21.08||17.83||22.00|
|Current Homes Active on Market||33||33||33|
|Months of Supply||1.57||1.85||1.50|
|Days of Supply||47||56||45|
For the past 6 months, it’s been the same story for buyers in the $150,000 to $449,499 range. There’s not even a 2 months supply of these Downtown San Diego Properties and competition is fierce.
The majority of these properties go into contract within the first week and more often than not, they receive multiple offers. To further make the buyer’s market more challenging, First American Title states that approximately 47% of these deals occur in cash!
|$450,000-$599,999||Closed Sales in the past:||12 month||6 months||3 months|
|Number of Homes Sold||128||62||35|
|Average # Homes Sold per Month||10.67||10.33||11.67|
|Current Homes Active on Market||64||64||64|
|Months of Supply||6.00||6.19||5.49|
|Days of Supply||180||186||165|
|$600,000-$749,999||Closed Sales in the past:||12 month||6 months||3 months|
|Number of Homes Sold||66||29||20|
|Average # Homes Sold per Month||5.50||4.83||6.67|
|Current Homes Active on Market||28||28||28|
|Months of Supply||5.09||5.79||4.20|
|Days of Supply||153||174||126|
|$750,000-$1m||Closed Sales in the past:||12 month||6 months||3 months|
|Number of Homes Sold||71||38||26|
|Average # Homes Sold per Month||5.92||6.33||8.67|
|Current Homes Active on Market||25||25||25|
|Months of Supply||4.23||3.95||2.88|
|Days of Supply||127||118||87|
In the $450,000 to $599,999 range, we find a 5.5 months supply of properties, but many of these properties are the remaining new sales left at Solara Lofts, Breeza and Aloft with are still demanding premium pricing in what has previously been a discounted market. I say previously because we are really seeing a shift in property values..the shift is upwards!
The Shift is Upwards!
Six months ago, we stated that it was still to be seen what would happen in the $600,000 to $1Million range as this is where the market was completely flat. Buyers were not buying except for the ultra distressed short sale or foreclosure properties, but now buyers are feeling the sense of urgency to purchase why some of the deals still exist.
The steals seem to be farther and fewer between these days, but the market still has some really great opportunities. This is the new deal…great properties will have multiple offers in almost every price range and we are seeing a floor of resistance to price reductions right up to $1Million.
|> $1m||Closed Sales in the past:||12 month||6 months||3 months|
|Number of Homes Sold||35||16||10|
|Average # Homes Sold per Month||2.92||2.67||3.33|
|Current Homes Active on Market||40||40||40|
|Months of Supply||13.71||15.00||12.00|
|Days of Supply||411||450||360|
If you’re fortunate enough to have the ability to purchase a home for over $1 Million, then you will really appreciate the Downtown San Diego Real Estate market. We still have a 12 month inventory of Downtown Condos in this category and there are some really beautiful luxury condos to chose from.
Downtown San Diego Real Estate
The good properties still go quickly, but buyers don’t have to frantically sprint to new listings to shoot offers from the hip as they hear rumors of other offers flooding into the listing agents office. Time is limited for all buyers as people know the bottom is gone.
It’s time to turn the page to a new chapter in the book for Downtown San Diego Real Estate. The distressed market Chapter was good, but I’m ready to see the next phase unfold.