January 2016
At first glance, it would appear that in Q4 of 2015 we hit a slow point. The number of sales dropped from 244 in quarter 3 to 182 in quarter 4. That is a 25.4% decrease in the number of sales. In my opinion, this is a bit deceiving though. I believe the lack of sales is due to the extreme shortage of inventory. Today we sit at only 160 listings in Downtown San Diego, compared to 228 going into October 2015. That is the lowest number of available listings I have seen in 4 years!
The main point in this market update is that if you are thinking of selling your home, now may be the perfect time. Interest rates are still extremely low and buyers are more motivated than ever with the threat of rising rates.
With a shortage of inventory, it is difficult for buyers to find what they are looking for. Many are sitting on the side lines waiting for more options to hit the market. Buyers are out there and looking!
While the number of sales greatly decreased, so did the amount of competition. The average sales price per square foot went up $19.72 /sf (3.73%) from Q3 to Q4. The average days on market also went down by 2 days (4.88%), meaning that property is selling faster for a higher price per square foot.
All Downtown
Homes Sold
Average/Month
- 12mo
- 6mo
- 3mo
Months Supply
- 12mo
- 6mo
- 3mo
Available Homes
- Active
- Pending
$200,000-$399,999
This segment is extremely low on inventory. It has just over a 1.5 months supply. Currently there are approximately 23 homes selling per month in this price range and only 38 options to choose from. Not to mention, 10 of the 38 options are in Aloft at Cortez Hill. That accounts for 26.3% of the inventory in this price range. There are currently 32 homes in this price range in escrow, only 2 (6.25%) of which are in Aloft. It is a great time to sell in this price range!
Homes Sold
Average/Month
- 12mo
- 6mo
- 3mo
Months Supply
- 12mo
- 6mo
- 3mo
Available Homes
- Active
- Pending
$400,000-$599,999
While the number of sales compared to last quarter has dropped significantly, this is still an extremely tight market. Compared to last quarter, there is 29% less inventory and 13 of the 54 listings (24.1%) are in Aloft at Cortez Hill. There is less than a 3 month supply and buyers are looking for new inventory!
Homes Sold
Average/Month
- 12mo
- 6mo
- 3mo
Months Supply
- 12mo
- 6mo
- 3mo
Available Homes
- Active
- Pending
$600,000-$799,999
It is a bit redundant, but with only 23 options downtown, this price range is struggling. The last 3 buyer clients I have had in this range have struggled to find what they want. Instead of waiting for the right condo to hit the market, I have been writing letters to homeowners asking if they want to sell. This price range is in desperate need of more listings. Buyers are out there, but can’t find what they want.
Homes Sold
Average/Month
- 12mo
- 6mo
- 3mo
Months Supply
- 12mo
- 6mo
- 3mo
Available Homes
- Active
- Pending
$800,000-$999,999
There hasn’t been much change in this segment over the last 6 months. Property is selling quickly, especially if it is in a desirable building/location.
Homes Sold
Average/Month
- 12mo
- 6mo
- 3mo
Months Supply
- 12mo
- 6mo
- 3mo
Available Homes
- Active
- Pending
$1,000,000-$1,499,999
Last quarter there were quite a bit more homes sold in this range. In Q3, we were averaging 6 sales a month compared to 3.67 per month in Q4. In my opinion, we will see this number rebound in Q1 of 2016.
Homes Sold
Average/Month
- 12mo
- 6mo
- 3mo
Months Supply
- 12mo
- 6mo
- 3mo
Available Homes
- Active
- Pending
$1,500,000-$2,499,999
The luxury market above $1,500,000 is still struggling. In the first 9 months of 2015 we were averaging 2 sales per month. In Q4 we only sold 2 in the entire quarter. There are a couple of very good buys in this range.
Homes Sold
Average/Month
- 12mo
- 6mo
- 3mo
Months Supply
- 12mo
- 6mo
- 3mo
Available Homes
- Active
- Pending
> or = $2,499,999
The number of options in this range have drastically dropped down to 3 listings. 6 months ago, there were 7 listings in this price range, half of which are now withdrawn from the market after they did not sell.
Homes Sold
Average/Month
- 12mo
- 6mo
- 3mo
Months Supply
- 12mo
- 6mo
- 3mo
Available Homes
- Active
- Pending
*All information is deemed reliable, but not guaranteed. Information obtained through the Sandicor MLS on January 4th, 2016.
