May 2020 Housing Market – Downtown San Diego Condo Market

Let’s start with the most obvious stat. The number of sales is down drastically since the Shelter in Place Order was initiated. The number of sales in April was down 46% when compared to April of 2019. We went from 63 sales down to only 34 in Downtown San Diego. That is obviously a substantial decrease. In March 2020, we still had 67 sales, but if you think about the timeline of a transaction, a large majority of the homes that sold in March would have gone into contract back in February.

In April, we also saw a very large reduction in the number of homes to go into escrow. In 2019, 61 homes went under contract, but this year we only saw 32 (-47.5%) homes go pending. This was down compared to March, which had 43 homes go under contract. These numbers suggest that May will have a reduced number of closings as well. That being said, despite the lack of sales, the months’ supply of inventory has remained relatively level. There are less new listings each month, which almost balances out the lack of property selling.

All of these stats sound pretty negative, but what I can say is that I feel things starting to warm up again. Based on our listing traffic, conversations I have had with other agents, and increased buyer activity, I suspect the numbers will gradually begin to improve from their current levels.

The average sales price is also down, but this doesn’t mean prices are dropping. This reduction in the average sales price is mainly caused by the lack of activity in the luxury market. This would cause the average sales price to come in lower. One interesting thing is the average list to sales price % is at a two year high. This means the property selling is actually getting closer to the asking price.

So many people ask me “How’s the market?”, but as you can see there isn’t a one size fits all answer. Are you a buyer or seller? What price range are you looking to buy/sell in? Do you have time to wait for the right deal or find the right buyer? Questions like these are important to understanding how your market is.

If you are looking to purchase a home in Downtown San Diego, it important to have a competitive edge. You need a guide through this complex real estate market, especially during these times. Our team prides ourselves in the research and market knowledge we posses.

It is also even more important as a sell to chose an agent that will give you the best chances of selling your home. Through our extremely high marketing standards and innovative techniques, such as 3-D tours, let us help you through the selling process in this complicated market.

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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!