While the downtown San Diego condo market raged through the spring and summer, things have settled some in the past 2 months.  Nonetheless, we still look to be on track for a  really great year in terms of appreciation and number of sales.  When looking at the trends in our market, we use market absorption rates where we look at the number of properties available and figure out how much supply we have in the marketplace.   A 6 month supply is said to be a balanced market; less inventory would create a seller’s market and a surplus would create a buyer’s market.

Downtown San Diego Condo Update

For properties in the $1,000,000 and greater range, we have an average of a 6.83 months supply which says this market segment is fairly balanced.  The 3 month trend shows us that we have e 7.4 months supply of luxury condos in this category so it appears that the inventory is growing and the market may be slowing to some degree.  One could call it a seasonal adjustment, but the fact is that the fourth quarter for the last few years has been very busy regarding property sales so this slow down is  not typical.

For properties downtown San Diego priced between $750,000 and $1m, we see only a 4 month supply which suggests it is still a seller’s market.  The three month trend indicates that inventory is continuing to drop to a 3.5 months supply so the market is still quite strong in this price range.  Properties with views or exceptional floor-plans go quite quick in this market.

For properties between $300,000 and $749,999, you can see that we have about a 2.5 months supply of downtown San Diego condos.  This is really the market segment that shows we are in a strong sellers market.  The three month trend suggests that this market segment continues to be more and more competitive with the inventory dropping to a 2.25 month supply.  This can make shopping for buyers a tough job!

For properties in the $150,000 to $299,999, there is not even a 1 month supply of inventory!  This segment will become extinct before too long, but right now it’s an all out feeding frenzy for most properties that are priced to market and in good locations.

If you are considering buying or selling a condo, we would be happy to help you navigate the Downtown San Diego real estate market.  Dannecker & Associates are a group of real estate professionals that specialize in properties in Downtown San Diego.  Give us a call because expert representation matters!  619-356-3099