Is the downtown San Diego real estate market doing better? Who knows…this questions depends on who you ask, which variables you consider and a lot of other stuff that really doesn’t provide a simple, or even an accurate answer. But…lets look at some statistics…
In the second quarter of 2010, the downtown San Diego condos at The Grande, had 6 sales. Q2 of 2009 had four sales and significantly longer market times. The average sales price then was $639,475, which was considerably lower than 2010 Q2’s average sales price of $910,166. Price per square foot in 2010’s Q2 was also higher, by about 10%. This year’s Q2 $/sqft was also higher than The Grandes’ Q1 numbers.
The highest priced sale in the second quarter of 2010 was for $1.5M, which was an E unit on the 30th floor. What was interesting about this sale, was that this condo sold for $125,000 more than the same floorplan one floor higher in the Grande South, which sold about 3 months earlier. Sure, being in the Grande North versus the Grande South might have played a role in the discrepancy, but that much? Within two months of the $1.5M sale, the same floorplan in the Grande South, on the 26th floor, sold for $1.4M. However, the buyer was an agent and did not pay himself the 3% that the seller was offering – in other words, the true sales price should have been $1,442,000 and not $1.4M.
So lets look at these sales chronologically:
Based on these sales, the market is definitely getting better. Per floor, the sales prices for these E plans have gone up from $44,355/floor, to $50K/floor, up to $55,462/floor over just six months! And by “per floor,” I’m talking about the premium you would pay per additional floor you went up in the highrise, for the same(or very similar) condo. I realize that $/floor isn’t usually used in determining a property’s value, but since these condos are all VERY similar and it’s a slow market, but it’s hard not to look at this – we’re talking about a 25% increase in six months!
I don’t think we’ll see any crazy swings in price or activity, but it does seem to be busier than it has been. YTD, downtown San Diego has had 580 condo sales(on the MLS), which is 17% more sales than during the same time period last year. Looking only at Q2, 2010 had 277 sales, while 2009 only had 218 sales – almost a 22% increase for this year’s sales. However, in terms of the average sales price, 2010 is down about 20% for the second quarter only.
Currently there are 465 active listings on the MLS and 125 that are in contingent status. Again, “contingent” means that the seller has accepted an offer from the buyer, but is waiting to get approval – typically because it’s a short sale and they need approval from the lien holder(s). Additionally, there are 153 pending listings – those that are currently in escrow. Overall, I feel that the market is doing well and things are moving. With San Diego’s median home price rising and the incredibly low interest rates, buyers and sellers are taking advantage of the incredible opportunities out there. For more info on San Diego real estate, please contact me, Denny Oh at 858–243–2092 or [email protected].
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