Welcome to San Diego Blog | November 4, 2011
Downtown San Diego Condo Inventory
San Diego Condos…
…sounds like an abundant resource. But it’s not. There are fewer Downtown San Diego condos currently listed than at any point since Downtown Condo Development exploded in the early 2000s.
The past decade had seen a seemingly endless stream of new construction condo opportunities for buyers in Downtown San Diego. However, as was noted in this May blog post, Bayside by Bosa closed its sales office in June. Last month, with the sale of the 32nd floor penthouse The Mark sold their final new home.
Since 2000, more than 5,000 residences have been added to the inventory of housing options in Downtown San Diego’s 92101 zip code. That accounts for more than 40 sales per month over the past 10 years.
Today there are only 2 sales offices open in Downtown San Diego for new condos.
Resale Condos in Downtown San Diego
It seems logical then, that this is the time for Downtown San Diego Condo owners to put there homes on the market and fill the inventory void. It hasn’t happened.
A closer look at available inventory by market segment presents interesting opportunities for buyers and sellers of Downtown San Diego Condos.
Listing Price Range Number of Available Condos Number Sold Past 12 mo.
$150-250,000 14* 110
250-500,000 75 206
500-750,000 51 70
750,000 + 131 138
*Excludes 13 condos currently listed at Hard Rock Hotel
Investors continue to vie for the lower end of the market, creating more stress in this market segment. Tangentially, the rental market continues to be particularly strong in the same area of the market. Rental prices are seeing a similar tweak based on the demand curve.
Obviously, there is an inverse proportion between supply and demand. At the lowest price point we sell nearly 10 downtown condos monthly on average and have just slightly more than a 1 month supply available. At $250-500,000 there is slightly more than a four month supply. While at the top of the market there is currently 1 year’s inventory available.
Downtown San Diego Condo opportunities
Two sides of the coin in our business right now. Last week we represented a seller in marketing a 1 Bedroom at Treo, with an asking price of $245,000. The homeowner accepted one of three offers on the second day.
On the other hand, a buyer seeking “a great deal” on a Pinnacle Condo has watched a fabulous residence sit on the market for 134 days, have 2 price drops and still not come to an agreement.
Lower price points are selling. Higher price points are languishing. It’s the first real move-up market we’ve seen since the bubble burst. If you’re a condo owner in the lower price ranges Downtown, it’s a great time to check comps. There has been real appreciation.
We are also seeing mortgage rates at historic lows. The combination of appreciation at the low end of the market, a stagnant market at higher price points and low interest rates create a real opportunity.
Check out our listing tips page at “why list with us.” Let’s start a conversation about San Diego Real Estate.
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This is significant to a discussion of Downtown Condo Inventory because of the