June 2023 Housing Market – Downtown San Diego Condo Market

There have been some fairly drastic changes to Downtown San Diego’s market over the last 30 days. The number of sales remains low, at just 45 sales in the month of May. That is a -53.1% decline when compared to last year. This isn’t anything new though, as the number of sales has remained below 60 since September of 2022. The big change is the increase in new listings to hit the market. In April, there were 60 new listings that hit the market; however, last month we saw 93 new listings hit the market. That is an increase of +55%. While this seems like a large increase, if we look back 10 years, we typically see over 100 new listings a month. Over the last 11 months, we have not seen 100+ new listings in a single month, which has kept supply down even though demand remains low. Month’s supply of inventory jumped from 1.9 months up to 2.9 months, which is a very significant increase over 1 month.

So what does all of this mean? The market is normalizing. Over the last 3 years, we had an incredible run in real estate. Values grew dramatically, but now the market is showing signs of slowing. It was evident that the market could not, and should not, keep the pace it was going. This is, overall, a good thing. A slower market is a healthier market. Sellers will need to make sure their home is positioned correctly. This is something I say often, but as the market changes so does the reasoning behind it. In a market that is moving extremely fast, it is about maximizing your return. In a normal market, it is about increasing your odds at selling while netting the most money possible. In a buyer’s market, it is almost purely about successfully selling when many other properties fail to sell.

As a buyer, you will have more options and terms, including price, will likely be more negotiable. This differs drastically depending on the price range and area you’re looking to buy in, but overall the market will be a bit more favorable than it has been in recent years. Prior to the pandemic, Downtown typically had 250-400 listings at any given time. It will be nice to have options to choose from.

And Always Remember, It Matters Who You Work With!

Give me a call today at (619) 228-6790 or email me at Ryan@livingthesandiegolife.com for more information or to schedule a tour of the neighborhood!