19Jul
By: Ryan Ponce On: July 19, 2021 In: Downtown San Diego, Market Update Comments: 0

2021 Quarter 2 – Downtown San Diego Housing Market

Downtown San Diego was one of the slowest moving markets in the County and was really hurt by the pandemic. As people fled higher density areas for yards and more space, inventory in Downtown was very stagnant. Towards the end of 2020, we began seeing a shift in the Downtown San Diego market. Going into Quarter 3 of 2020, Downtown was at a 7.21 month supply of inventory. Going into Quarter 3 of 2021, we are only at a 1.23 month supply of inventory! In Quarter 2 of 2021, we saw 378 sales in Downtown San Diego, which is a +39.0% increase over last quarter, and a +193.0% increase over Q2 of 2020! 

One of the most surprising data points when looking at the numbers is the fact that every segment of the market appears to be improving, especially the luxury market. There is not a single price range in downtown that has over a 6 month supply of inventory, which is shocking. Typically both segments of the market above $1,500,000+ have a year or more of inventory. There are also currently only 155 properties on the market. If we remove the units available in The Hardrock Hotel, that number drops to 146. Going in to Q3, there are 121 properties currently under contract. This number is down a bit compared to last quarter, but that likely has to do with the fact that there aren’t a ton of options for people looking downtown.

In this market, it is extremely important to use a professional. It is vital to position your property correctly to insure getting the most money possible in the shortest amount of time. Find out what common mistakes sellers make when selling their property in Downtown San Diego so you can save yourself both time and money!

As a buyer, it is very important to work with a professional who knows the downtown San Diego neighborhoods! Now that inventory is extremely low, working with a professional that knows and understands the Downtown market is vital. It will help you save time, find the right property for you, and uncover off market options. Work with someone who can help navigate the market.

All Downtown

Homes Sold

3 Months - 378 Homes
6 Months - 660 Homes
12 Months - 1175 Homes

Average/Month

  • 12mo
  • 6mo
  • 3mo

Months Supply

  • 12mo
  • 6mo
  • 3mo

Available Homes

  • Active
  • Pending

$200,000-$399,999

This segment is technically the only segment that had a decrease in activity, but I think that really has to do with the fact that there is less and less available under $400,000. Prices in this range have been pushing up for some time and it is causing this segment’s activity to shrink. There are currently 21 options on the market under $400,000, with an additional 15 properties that are under contract. This segment accounts for 9.26% of the sales in Downtown and represents 13.55% of the current inventory.

Homes Sold

3 Months - 35 Homes
6 Months - 90 Homes
12 Months - 176 Homes

Average/Month

  • 12mo
  • 6mo
  • 3mo

Months Supply

  • 12mo
  • 6mo
  • 3mo

Available Homes

  • Active
  • Pending

$400,000-$599,999

This is one of the most competitive ranges in Downtown. With an average of 46.67 homes selling per month and only 46 listings on the market, we are just below a 1 month supply of inventory. While 46 options may sound like a lot, you have to remember that the actual residences in Downtown San Diego vary so much that there really isn’t much to choose from if you’re looking for something specific. This price range accounted for 37.0% of the sales in Q2, which is the highest of any range. It accounts for 29.7% of the inventory, which is also the highest when compared to the other price ranges.

Homes Sold

3 Months - 140 Homes
6 Months - 244 Homes
12 Months - 456 Homes

Average/Month

  • 12mo
  • 6mo
  • 3mo

Months Supply

  • 12mo
  • 6mo
  • 3mo

Available Homes

  • Active
  • Pending

$600,000-$799,999

This segment of the market has the lowest available inventory in Downtown San Diego. There are approximately 32.67 homes selling per quarter and only 31 homes on the market. 27 residences are currently under contract in this price range. 25.9% of homes sold in Downtown last quarter fell in this range and it currently accounts for 20.0% of the available inventory.

Homes Sold

3 Months - 98 Homes
6 Months - 163 Homes
12 Months - 282 Homes

Average/Month

  • 12mo
  • 6mo
  • 3mo

Months Supply

  • 12mo
  • 6mo
  • 3mo

Available Homes

  • Active
  • Pending

$800,000-$999,999

There was an average of 32.67 homes selling per month in this price range, which is extremely high compared to previous quarters. That is a 53.1% jump when compared to last quarter and a 308% when compared to Q2 of 2020! Inventory is down to just a 1.26 month supply and there are currently only 18 listings on the market right now, with 8 additional residences in escrow. 11.4% of the sales in Downtown San Diego fell in this range and it accounts for 11.6% of the available inventory.

Homes Sold

3 Months - 43 Homes
6 Months - 77 Homes
12 Months - 120 Homes

Average/Month

  • 12mo
  • 6mo
  • 3mo

Months Supply

  • 12mo
  • 6mo
  • 3mo

Available Homes

  • Active
  • Pending

$1,000,000-$1,499,999

This price range is where things begin to get really interesting. An average of 12 homes sold per month in this price range, which is a +71.4% increase when compared to Q1. The available inventory dropped down to 1.33 months, which is a decrease of -76.1%! There are currently only 16 options in all of Downtown San Diego in this price range and there are 16 properties in escrow! This segment of the market represented 9.5% of the sales in Downtown and currently makes up 10.3% of the available inventory.

Homes Sold

3 Months - 36 Homes
6 Months - 57 Homes
12 Months - 95 Homes

Average/Month

  • 12mo
  • 6mo
  • 3mo

Months Supply

  • 12mo
  • 6mo
  • 3mo

Available Homes

  • Active
  • Pending

$1,500,000-$2,499,999

Typically this range is a strong buyers market, with plenty of options available. Currently there are only 9 listings for sale in this price range and with an average of 5 selling per month, we are under a 2 month supply of inventory. On top of that, there are currently 6 homes in escrow in this price range. In Q1 of 2021, there were only 2 sales in this price range, but in Q2 of 2021 there were 15. That is an increase of +650%! This price range made up 4.0% of the sales in Downtown San Diego and makes up 5.8% of the available inventory.

Homes Sold

3 Months - 15 Homes
6 Months - 17 Homes
12 Months - 30 Homes

Average/Month

  • 12mo
  • 6mo
  • 3mo

Months Supply

  • 12mo
  • 6mo
  • 3mo

Available Homes

  • Active
  • Pending

> or = $2,500,000

This is the most shocking increase in Downtown San Diego. Last quarter, there were 11 sales above $2,500,000 in Downtown San Diego. Typically we are lucky if we have 10+ sales in a 12 month period in this price range! With an average of 3.67 homes selling per month last quarter and 15 homes on the market, this segment of the market dropped below a 6 month supply for the first time in as long as I can remember. There are also currently 3 homes under contract in this range, which puts Q3 off to a strong start as well. While these numbers are impressive, this price range only made up 2.9% of the sales last quarter and it currently accounts for 9.7% of the inventory.

Homes Sold

3 Months - 11 Homes
6 Months - 12 Homes
12 Months - 16 Homes

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 San Diego MLS on July 7th, 2021.

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!

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