2018 Quarter 3 Downtown San Diego Market Update

Downtown San Diego, as well as the entire county, have seen an increase in the number of listings. The market is finally turning into a more balanced playing field for buyers and sellers, but I want to put it into perspective. We might not be used to more options, increased market times, and price reductions, as we haven’t seen it since the market crashed. Right? Wrong!

To put it into perspective, I analyzed several stats to take you back to similar times. The first thing I am going to look at is months’ supply of inventory. We are at about a 5 month supply of inventory. We were around the same level of inventory back in July of 2014. Back then the average sales price was $531,364 and now it is $704,810. For the first time since January 2008, the average sales price in Downtown San Diego is above $700,000! That might worry you, as those were some dark times.

Let’s compare some other stats from January 2008. Inventory was at a 13.9 month supply. That wasn’t a typo. We were at a 13.9 month supply! That means there was more property on the market then what was selling in an entire year. In January 2008, there were a total of 663 listing on the market. That same month, there were only 37 sales in downtown San Diego.

The market is definitely balancing out and it isn’t necessarily a bad thing. Anything around a 6 month supply is a balanced market. Buyers have options to choose from and have more opportunity. They aren’t forced to settle for the home they were able to win when facing multiple offers. It is also a great time for people who are selling one residence and moving to another. They aren’t having to sacrifice on what they are buying because there aren’t options to choose from for their replacement property. What does this mean for sellers though?

Their home needs to be enticing. It needs to stand out, have great marketing, and be priced appropriately. The days are gone (for now) where you can throw your home on the market for 10%-20% over the last sale and someone will still buy it. We are seeing so many price reductions due to the fact that some sellers are overly ambitious when pricing their home. The longer a home sits, the less likely it is to sell close to the list price. As it sits, it becomes stale. Buyers wonder what is wrong with it. No one wants to buy the property no one else wants. What if that happens to them when they sell? So the listing will sit and face price reductions until it becomes an amazing deal and someone seizes the opportunity. By the way, there are about 5 options that I can think of right now that fall into this category. They started out over priced and now they are some of the best deals on the market. As a seller, don’t let this happen to you.

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 extremely important to work with a professional who knows the downtown neighborhoods! It could cost you the opportunity to own that perfect home you were looking for.

Price Range

• $200,000-399,999
• $400,000-599,999
• $600,000-799,999
• $800,000-999,999
• $1,000,000-1,499,999
• $1,500,000-2,499,999
• > or = $2,500,000

Homes Sold

Average/Month

Months Supply

Available Homes

Homes Sold

Average/Month

Months Supply

Available Homes

Homes Sold

Average/Month

Months Supply

Available Homes

Homes Sold

Average/Month

Months Supply

Available Homes

Homes Sold

Average/Month

Months Supply

Available Homes

Homes Sold

Average/Month

Months Supply

Available Homes

Homes Sold

Average/Month

Months Supply

Available Homes

Homes Sold

Average/Month

Months Supply

Available Homes

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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