**Please note that I only have statistics going back to 2007.
It seems like just yesterday, I was ringing in the new year with cheap champagne and good friends. Now that January has already passed, I thought it’d be a good time to look back and see what the real estate market has been doing…
In many regards, 2009 was a significant year. After the market peaked in 2006, there were some ups and downs, but it seems like 2009 was when things really started to improve. From 2009 through 2013, there was a 98% decline in developer sales for downtown San Diego. Bayside and Sapphire Tower were completed in 2009, so there was a fair amount of new inventory on the market then – not to mention buildings like The Legend, Smart Corner and Electra still had a fair amount to sell as well. As the new inventory sold and the market improved, buyers had to look at distressed sales (REOs and short sales) and regular resales.
Short sales fell from a high of 248 in 2011, to a mere 79 in 2013 – nearly a 214% decline. In 2013, the market had improved so much that many people who were upside down just a few months before, could now complete a regular sale and avoid a short sale. Foreclosures declined drastically as well from 2009 to 2013, falling 94%. This was mainly because banks were more cooperative with sellers who wanted to complete short sales and because the number of people who were upside down on their homes dwindled.
With no new condos being built for a while, I think the resale market will continue to do well and prices will slowly rise. The demand is still strong, but only for “good” inventory – not the bottom floor condo that has no patio, not the interior facing unit that gets no sunlight and definitely not the properties that are way overpriced.
The average downtown San Diego condo sales price has risen by nearly 20% since 2012 and while I don’t see another 20% gain this year, I think we’re going to see a very healthy market. However, rents may begin to decline as many of these new apartment buildings (rentals – not condos) are completed.
For more information about the San Diego real estate market, please contact Denny Oh at 858-243-2092 or [email protected]