YTD, downtown San Diego has had 862 condo sales(more if you count all the sales that were not on the MLS). At about 78 condo sales a month, that’s slightly better than last year’s numbers. In 2010, during the same time frame(1/1-11/30), there were 835 sales in downtown San Diego(but I’m sure there were more developer sales than this year). 2011 has seen a slight increase in average sales price as well, by almost 6%, at $426,210.
Again, these statistics only take into account what’s on the MLS. Many developers never list sales on the MLS and can only be considered if you pull up tax records and spend a lot of time charting them.
The majority of downtown San Diego’s condos sales this year were at the lower price points. There have been 667 condos(77% of all 92101 sales) that sold this year(to date), with a sales price of $500K or less. This makes sense as most people are taking advantage of the low prices and low interest rates – there aren’t a ton of “move up” buyers(i.e., people who sell the $400K homes and move up to a $500-600K home) since they probably don’t have any equity in their homes.
Another 169 sales in 2011 were between $501K-1M, the majority selling for less than $700K. What was interesting to me though, was that there were still a fair amount if high end sales this year. Downtown San Diego had 15 condos sell for more than $1.5M and 10 of those sales were for more than $2M. Many of these sales were penthouse condos in the newer buildings like Bosa’s Bayside and the Sapphire Tower. The most expensive condo sale this year was condo #2004 at The Renaissance(which is almost done with the repairs from the litigation settlement), which recently sold for $3M.
I still believe that downtown San Diego is one of the best places you can buy in San Diego and we’re going to see a great deal of appreciation in the future(just not the near future). Businesses will migrate downtown and people will follow. If you have any doubt, just think about how companies operate and how all storage space is going offsite or into a cloud. Businesses don’t need as much physical space per employee and I can guarantee that the bay view from a 20th floor downtown office is much better than the 2nd story view you of the parking lot you have now in Rancho Bernardo or Sorrento Valley. If you’re still not convinced, just look at San Fransisco or Seattle. Look at the future of gas prices.
One day, downtown San Diego will be a true downtown and home prices will be a lot higher than they are now. When do you want to invest?
Denny Oh 858-243-2092 [email protected]