When my office receptionist(not even my personal secretary) politely mentioned that I hadn’t written on my blog for quite some time, I knew I couldn’t make any more excuses and had to get back to writing. Thank you Pamela! Sorry, everyone else. Moving right along, here’s a quick update on the downtown San Diego condo market; it’s crazy!
Inventory this year has been incredibly low. For much of 2012, downtown San Diego has had around 170 active listings(this has just recently gone up to 181 as of today) on any given day. In 2011, we were closer to about 220 active listings at anytime(this isn’t based on any reports, just from what I noticed and recall). At the peak of the market, we were closer to about 600 active listings at any time.
Why is this happening? I’m not really sure. Perhaps is banks holding back on selling REOs, maybe it’s because most people who were going to short sell their homes, already have. Maybe it’s because everyone’s waiting for the market to pick, or maybe it’s because no one has an equity in their home and they don’t want to do a short sale. In any event, there’s not much for sale.
Here’s the good news: if you’re a seller, or are thinking about selling, you should do it now. I’ve repeatedly seen listings come on that I personally, thought were over priced. Then a few days later, these overpriced listings were suddenly in escrow (so much for being a real estate expert). This has happened several times and it doesn’t seem to be stopping and it’s definitely not uncommon to see multiple offers. Now, I’m not saying that prices are skyrocketing and the market is taking off. What I am saying is that there’s a lot of buyers out there and not much supply. You don’t have to be an economist to figure out what the result is.
In the first quarter of 2011, there were 229 downtown San Diego condo sales. The most expensive condo sale was for $2.7M, but the average sales price was $415,705. More telling however, is the median sales price, which was $325,000 – showing that most of the 92101 condo sales were at a lower price point. Also, the median sales price to list price, was 96%.
In the first quarter of 2012, there were 194(15% less sales than Q1 of 2011) condos sales downtown and the median sale to list price was 97%. Clearly its not a HUGE change, but it is noticeably different, especially when you’re the buyer. Rentals are also very high in demand and rents are slightly higher. The median market tine is also lower in 2012, at 57 days, versus 67 days in 2011(about 17% longer).
So what now? If you’re thinking about selling, give me a call. Denny Oh – 858-243-2092 – [email protected]. If you know you need/want to sell in the next 12 months or so, I would strongly suggest you consider doing it now. I’m not saying you’ll get some ridiculous, unrealistic price, but if you’re within reason, you’ll probably get multiple offers and sell quickly.
If you’re a buyer, call me. Denny Oh – 858-243-2092 – [email protected]. You need an agent who will send you listings every day and educate you on the process. I’ve seen buyers submit terribly poor offers on listings (that have multiple offers), I’m assuming, because their agents didn’t advise them properly – just because a listing is priced low, it doesn’t mean you should write a low offer. In a world of short sales and listing agents who want multiple offers, it doesn’t matter what the list price is…you need to know what the value is.
If you have any questions, please don’t hesitate to contact me. Thanks.