The San Diego real estate market has been pretty crazy these last several years. We saw home prices skyrocket and crash. We saw people buy with no money down and now were seeing people with LOTS of money who are unable to get loans. In a market where approximately one third of all transactions are either a short sale, or a foreclosure, I can help but think that this is a great time to buy real estate. I do think the higher end prices will drop some more and interest rates will rise in the next few years(which will result in fewer homes being purchased), but Im confident that the bottom for entry level homes has been hit. Youre seeing lots of multiple offers and even with the anticipated REOs being released by the banks, I think the demand is there.
Real estate prices in downtown San Diego are back to what they were in 2001 and 2002! With an average sales price of $461,752 in 2009, downtown San Diego condos are 35% less expensive as they were in 2004. Downtown San Diego condos have not been this cheap since 2001! Keep in mind however, that these numbers a bit skewed, as not all developer sales are represented in these charts(I didnt have that info). Inventory is low and theres nothing currently under construction. What we have now is what well have for at least the next two years(which is about how long itd take to finish a building if they broke ground today). Bosa is starting their third tower in San Francisco and I think Bayside will keep their hands full for a while. My guess is that we wont see any new condos being started for about 18 months.
Ive noticed a huge upswing in buyers confidence levels and were seeing a lot of investors taking advantage of the market. Yesterday, I was at a Trustee sale on the court house steps and even those(you have to pay cash here “ no loans) are busier now(in terms of how many people attend). In 2009, there were 788 condos that sold in the MLS in downtown San Diego alone. This does not show all of the developer sales, although there werent a ton. Only 2005 had more condo sales, which was the peak of the market and had 846 sales “ only 58 more sales.
I think most people will tell you that there seeing a lot more activity in the real estate market. Despite the longer market times that banks are creating(short sales typically take 4“8 months), a lot of homes are selling in the 92101 area. As you can see below, market times are about 9“16% shorter than they were in recent years and with the new stream lined short sale process, hopefully well see even faster transactions.
If youre thinking about buying, or selling, a home in the San Diego area, please let me know. I may not have any bus stop ads, but I think that Im pretty good at what I do.
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