Added by Chad on Jul 07 2:05PM
Like many places in California, the real estate in Downtown San Diego has taken off over the past 18 months with regards to prices! According to Dataquick, home prices for properties in Downtown San Diego have risen 16.4% from this time last year and the median price of a downtown condo has changed 31.2% for the same period.
The average price per square foot for a condo in downtown San Diego has gone up 18.5% in the last 12 months. Why are prices rising so rapidly? In order to understand what’s taking place in the downtown San Diego real estate market, one must take a look at the market absorption rates to see where the shift is occurring.
Downtown San Diego Real Estate
|$150,000-$299,999||Closed Sales in the past:||12 month||6 months||3 months|
|Number of Homes Sold||236||101||47|
|Average # Homes Sold per Month||19.67||16.83||15.67|
|Current Homes Active on Market||14||14||14|
|Months of Supply||0.71||0.83||0.89|
|Days of Supply||21||25||27|
|$300,000-$449,900||Closed Sales in the past:||12 month||6 months||3 months|
|Number of Homes Sold||289||143||77|
|Average # Homes Sold per Month||24.08||23.83||25.67|
|Current Homes Active on Market||53||53||53|
|Months of Supply||2.20||2.22||2.06|
|Days of Supply||66||67||62|
|$450,000-$599,999||Closed Sales in the past:||12 month||6 months||3 months|
|Number of Homes Sold||179||88||46|
|Average # Homes Sold per Month||14.92||14.67||15.33|
|Current Homes Active on Market||41||41||41|
|Months of Supply||2.75||2.80||2.67|
|Days of Supply||82||84||80|
|$600,000-$749,999||Closed Sales in the past:||12 month||6 months||3 months|
|Number of Homes Sold||111||58||34|
|Average # Homes Sold per Month||9.25||9.67||11.33|
|Current Homes Active on Market||25||25||25|
|Months of Supply||2.70||2.59||2.21|
|Days of Supply||81||78||66|
|$750,000-$1m||Closed Sales in the past:||12 month||6 months||3 months|
|Number of Homes Sold||63||35||18|
|Average # Homes Sold per Month||5.25||5.83||6.00|
|Current Homes Active on Market||21||21||21|
|Months of Supply||4.00||3.60||3.50|
|Days of Supply||120||108||105|
|> $1m||Closed Sales in the past:||12 month||6 months||3 months|
|Number of Homes Sold||65||35||15|
|Average # Homes Sold per Month||5.42||5.83||5.00|
|Current Homes Active on Market||37||37||37|
|Months of Supply||6.83||6.34||7.40|
|Days of Supply||205||190||222|
|* All data is deemed to be reliable, but is not guaranteed. Data pulled directly from Sandicor MLS|
|* data pulled 7/7/2013|
One must keep in mind that a balanced real estate market is one in which there is a 6 month supply of homes on the market at any given time. When you look at properties in downtown San Diego under $300,000, you can see that there isn’t even a one month supply, thus proving to make it a seller’s market with buyers competing for a limited number of condos.
There’s not even a 1 month supply of condos downtown San Diego under $300,000
If you look at condos in downtown San Diego priced $300,000 to $749,900, you can see there is still only a 12 month trailing average of 2.2 to 2.7 months supply. It’s still stacking up to be favorable for sellers in these price ranges. For properties downtown San Diego priced from $750,000 to $1M, there is still only a 4 months supply of condos for sale.
While properties priced over $750,000 lie closer to a balanced market between buyers and sellers, the seller still has the upper hand as long as they have a desirable property. For homes over $1m in downtown, there is an average of a 6.83 month supply.
The luxury condo market is where the best opportunities can be found because there are less buyers in this price range and more properties to chose from. With lending loosening up, we expect to see this price category tighten up as well.
If you are interested in buying or selling downtown San Diego real estate, Chad Dannecker and Associates are experts focused on the downtown market that will make your experience a pleasant one! For more information, give us a call: 619-309-8011.