April 2016
Quarter 1 of 2016 was off to an incredibly slow start. We started January with only 160 available listings in all of Downtown San Diego. There was only a 2.64 month supply of inventory. If you are unfamiliar with what “month’s supply of inventory” is, it refers to the number of available homes divided by the number of homes selling per month. The idea is that if no new inventory hit the market, we would burn through our inventory in less than 3 month’s time.
Anything under a 6 months supply is a sellers market. A balanced market is in the range of 6-7 months, where neither buyers nor sellers have the upper hand. Anything above 7 month’s supply favors the buyer. As you can see, it still remains a seller’s market. Downtown San Diego had a great month in March and I believe will have an even better April regarding the number of homes sold. If you refer to my February 2016 market update, you will see a huge upswing in the number of pending listings and sales in 92101. This is largely credited to the amount of new listings hitting the market during January and February.
Although it would appear the number of sales have dropped over the last 9 months, if you analyze the numbers, this has to do with the available inventory. There are buyers circling, but they can’t find what they want. The last 3 listings we have had this year have received multiple offers. It is a great time to be a seller, and as a buyer, it is extremely important to work with a professional in the downtown neighborhood!
All Downtown
Homes Sold
Average/Month
- 12mo
- 6mo
- 3mo
Months Supply
- 12mo
- 6mo
- 3mo
Available Homes
- Active
- Pending
$200,000-$399,999
Almost everything that hits the market in this price range is selling extremely fast. We are at a 1.2 month supply, which is insanely low. There is currently more in contract than there is active on the market! In the beginning of January, we started off with 38 active listings, but now we are down to 28. If you are on the fence about selling, this is the time to get top dollar!
Homes Sold
Average/Month
- 12mo
- 6mo
- 3mo
Months Supply
- 12mo
- 6mo
- 3mo
Available Homes
- Active
- Pending
$400,000-$599,999
The data from the last quarter suggests this segment of the market is currently gaining inventory. That doesn’t tell the whole story. Downtown San Diego had a huge March. Going in to Quarter 1, we only had 18 pending listings in this price range and 55 active listings. Going in to Quarter 2, there are still 55 active listings, but now we currently have 53 pending sales. In next quarter’s market update, I think we will see a huge change to these numbers.
Homes Sold
Average/Month
- 12mo
- 6mo
- 3mo
Months Supply
- 12mo
- 6mo
- 3mo
Available Homes
- Active
- Pending
$600,000-$799,999
This segment is interesting. We saw the number of sales per month drop from 9.33 in Quarter 4 of 2015 to 7.00 homes this quarter. The reason why I find this interesting is that there are more in escrow now than that sold this quarter. Majority of those homes will sell in the next 30-45 days, so we will see a huge spike in sales.
Homes Sold
Average/Month
- 12mo
- 6mo
- 3mo
Months Supply
- 12mo
- 6mo
- 3mo
Available Homes
- Active
- Pending
$800,000-$999,999
This quarter there were only 7 sales in this segment. The story this really tells is how slow December 2015 – February 2016 was. There are now 8 properties in escrow in this range. This segment of the market will also look completely different when we get to the market update for quarter 2 of 2016.
Homes Sold
Average/Month
- 12mo
- 6mo
- 3mo
Months Supply
- 12mo
- 6mo
- 3mo
Available Homes
- Active
- Pending
$1,000,000-$1,499,999
With 25 available listings, but only selling per month, this segment is more of a balanced market. Like a large majority of the other price ranges, we did see a ramp up in the last 30-45 days. There are currently 7 in escrow, which should all close in quarter 2.
Homes Sold
Average/Month
- 12mo
- 6mo
- 3mo
Months Supply
- 12mo
- 6mo
- 3mo
Available Homes
- Active
- Pending
$1,500,000-$2,499,999
This price range had a huge quarter, but the numbers aren’t shown here. Bosa Development’s Pacific Gate claims to have sold over $90,000,000 during the first weekend of sales. Majority of those homes will be in this segment of the market, but resale property in this range is still struggling. We only had 5 sales in the last 3 months and there are 16 available properties.
Homes Sold
Average/Month
- 12mo
- 6mo
- 3mo
Months Supply
- 12mo
- 6mo
- 3mo
Available Homes
- Active
- Pending
> or = $2,500,000
Again, this segment doesn’t include Pacific Gate’s sales. A large majority of the homes start at 1.4 million and exceed 4 million. We are only averaging one resale unit a quarter and there are currently 9 options on the market. I believe Pacific Gate will ram up consumer confidence in the luxury market and we will hopefully see improved sales above $2.5 million.
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 March 31st, 2016.
And Always Remember, It Matters Who You Work With!
Give me a call today at (619) 228-6790 or email me at Ryan@www.livingthesandiegolife.com for more information or to schedule a tour of the neighborhood!
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