Welcome to San Diego Blog | May 6, 2013

Downtown San Diego Condo Sales

…And what’s happening in San Diego Downtown 92101 zip code.  It’s no secret that the market has changed, but what exactly has become of the downtown condo market?

Are there any good deals left in Downtown San Diego?

Price Range        
 $150,000-$299,999  Closed Sales in the past: 12 month 6 months 3 months
  Number of Homes Sold 237 119 53
  Average # Homes Sold per Month 19.75 19.83 17.67
  Current Homes Active on Market 15 15 15
  Months of Supply 0.76 0.76 0.85
  Days of Supply  23 23 25
         
 $300,000-$449,900  Closed Sales in the past: 12 month 6 months 3 months
  Number of Homes Sold 268 139 65
  Average # Homes Sold per Month 22.33 23.17 21.67
  Current Homes Active on Market 22 22 22
  Months of Supply 0.99 0.95 1.02
  Days of Supply  30 28 30
         
 $450,000-$599,999  Closed Sales in the past: 12 month 6 months 3 months
  Number of Homes Sold 174 89 42
  Average # Homes Sold per Month 14.50 14.83 14.00
  Current Homes Active on Market 37 37 37
  Months of Supply 2.55 2.49 2.64
  Days of Supply  77 75 79
         
 $600,000-$749,999  Closed Sales in the past: 12 month 6 months 3 months
  Number of Homes Sold 99 56 24
  Average # Homes Sold per Month 8.25 9.33 8.00
  Current Homes Active on Market 19 19 19
  Months of Supply 2.30 2.04 2.38
  Days of Supply  69 61 71
         
 $750,000-$1m  Closed Sales in the past: 12 month 6 months 3 months
  Number of Homes Sold 59 28 19
  Average # Homes Sold per Month 4.92 4.67 6.33
  Current Homes Active on Market 23 23 23
  Months of Supply 4.68 4.93 3.63
  Days of Supply  140 148 109
         
 > $1m  Closed Sales in the past: 12 month 6 months 3 months
  Number of Homes Sold 61 30 16
  Average # Homes Sold per Month 5.08 5.00 5.33
  Current Homes Active on Market 35 35 35
  Months of Supply 6.89 7.00 6.56
  Days of Supply  207 210 197
         
* All data is deemed to be reliable, but is not guaranteed.  Data pulled directly from Sandicor MLS

A brief synopsis shows us how our market has changed over the past 18 months or so if you look back our our market absorption rates from November of 2011.

Downtown San Diego Condo Sales

The most notable difference is that the market was more balanced back in 2011.  What do I mean by this?  A balanced market is one in which there is about a 6 months supply of inventory for any given price range.  This would indicate that buyers and sellers on an “even playing field” meaning that neither would have an advantage based on market conditions.

There has been a huge shift in the market.

In November of 2011, the market from $200,000 right up to $599,900 was a hot market with less than a 3.5 months supply of downtown condo properties.  This means that buyers had to compete for properties and therefore we saw the prices start to rise based on competition among buyers.

For the price range from $600,000 to $749,900 there was an 8 months supply of homes.   For $750,000 to $999,900 there was a 9 month supply of homes and for $1M and up, there was a 10 month supply of homes so this was inverted from what we saw in the $599,900 price range and below.  This was indeed a buyer’s market where buyers could shop multiple properties and negotiate stronger deals.

In comparison with our market absorption rates for condos in downtown San Diego today, there is a significant difference.  As you can see above, from $600,000 to $749,900 there is just over a 2 months supply.  This is a huge shift in the market! 

Today in the $750,000 to $999,900 range, there is only about a 4.5 months supply of properties so we are still looking at sellers having a favorable hand here.  For properties in the $1m and above range, I would say the market is balanced with a 6.89 months supply of downtown san diego condos for sale.  We’ve essentially eaten up an extra 3 months worth of luxury condo properties and are finally balanced.

There are still good opportunities to get great deals as many of the most recent sales are still distressed short sales that are just closing escrow now after months of processing, however, it’s likely that our market only bears another 12 months of good investment opportunities until we get back to people just buying because they want to live in America’s finest city.

For more information, give us a call: 619-309-8011


Written by: chad

Categories: Absorption Rates, Downtown San Diego, Real Estate Investment, San Diego Real Estate

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