Welcome to San Diego Blog | December 29, 2010
Downtown San Diego Condos
Discover the latest market activity for downtown San Diego Condos including the sales statistics for the last 3, 6, and 12 months. Where is the market headed? See the market absorption rates and sales trends that give lead indicators to where the downtown San Diego Condo Market Could be headed next.
Downtown San Diego Condo Market Absorption Rates
The above chart illustrates the number of average sales for various price brackets for condos in Downtown San Diego. As we can see, condo sales have remained stable. As we moved into the holidays, we can see that sales have slowed down some, but nothing outside of the normal patterns we see on an annual basis. The biggest shocker on this chart actually comes in the $1 million plus range. We were surprised to see the last 3 months actually take a move upward in this price category. These $1 million plus sales are occuring mainly at Bayside and Sapphire Tower condos, which are some of the last remaining new condo inventory in Downtown San Diego.
The most interesting data I see in the market absorption rates which are below is that for the condo market in the $600k price range and below, we actually have less than a 6 months supply of condos. This would indicate that we are in a seller’s market for those properties. Does this mean prices will start going up soon? My take on this is that values will have a hard time going up for three main reasons:
- banks listing foreclosures at below market values and not making their agents market them properly. We often see banks leave 10-35% on the table…they are shooting themselves and the rest of the sellers in the foot.
- short sales where seller’s don’t care how much they sell their property for because they are not coming out of pocket with the loss.
- poor appraisals due to the governments mandating of the HVCC appraisal management companies involvement which often sends appraisers from out of the area that are inexperienced with the downtown market. We see terrible appraisals every month!
Condos sold Downtown San Diego
We continue to see the market flooded with inventory for the more expensive luxury condos downtown San Diego. With over a 2 year supply of condos for sale in the $1 million plus price range, we will continue to see really great buys for buyers with cash or the means to obtain financing. It’s pretty clear that until mortgage underwriting guidelines start to loosen up for self employed borrowers, then this luxury market segment will not have any dramatic improvement. Great deals at buildings like Bayside and The Mark won’t last because once they are sold, those owners will hold knowing they have a great longterm investment and property on their hands.
For more information about searching for downtown San Diego condos, give us a call: 619-309-8011