09Oct
By: Ryan Ponce On: October 9, 2021 In: Downtown San Diego, Market Update Comments: 0

2021 Quarter 3 – Downtown San Diego Housing Market

Downtown continues to have buyer demand that is currently far exceeding supply. There were an average of 113 homes selling per month in Quarter 3, but there are only 101 homes on the market in Downtown San Diego. That means there is less then a 1 month supply of inventory in Downtown and it seems to just continue shrinking. When we started the 3rd quarter there were a total of 155 condos on the market, but we finished with only 101 properties on the market. That is a -34.8% decrease in the number of available listings.

The months’ supply of inventory is now at 0.89 months, which is a -27.6% decrease. Never, in my 10+ years of specializing in Downtown San Diego, have I ever seen such a shortage of inventory. While the number of total sales dropped from 378 down to 340 (-10.1%), it is clear that this is due to the amount of available properties for buyers to choose from. We are also seeing quite a few deals happening off market due to the shortage of inventory, so it is extremely important to work with an agent/team that is well connected and has a vast knowledge of the Downtown San Diego market.

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 - 340 Homes
6 Months - 723 Homes
12 Months - 1265 Homes

Average/Month

  • 12mo
  • 6mo
  • 3mo

Months Supply

  • 12mo
  • 6mo
  • 3mo

Available Homes

  • Active
  • Pending

$200,000-$399,999

This price range continues to shrink and we will likely need to combine this with $400,000-$599,999 or drop it all together. There are very few homes available under $400k now. In fact, 11 of the 14 properties on the market in this price range are in the Hardrock Hotel. Those residences are hotel condo units and can only be used 28 days a year by the owners. Outside of those 28 days, the condos are placed in the hotel pool to be rented out. That means there are ONLY 3 available options in Downtown San Diego under $400k.

Homes Sold

3 Months - 29 Homes
6 Months - 65 Homes
12 Months - 158 Homes

Average/Month

  • 12mo
  • 6mo
  • 3mo

Months Supply

  • 12mo
  • 6mo
  • 3mo

Available Homes

  • Active
  • Pending

$600,000-$799,999

This segment of the market still has the lowest available inventory in Downtown. In fact, it was the lowest segment of the market last quarter and since then the number of active listings dropped from 31 options down to just 15 (-51.2%)! I would guess that we will see the number of sales in this price range go down, but not due to the lack of buyer demand. If we don’t get a boost in inventory, there won’t be much to sell.

Homes Sold

3 Months - 83 Homes
6 Months - 182 Homes
12 Months - 308 Homes

Average/Month

  • 12mo
  • 6mo
  • 3mo

Months Supply

  • 12mo
  • 6mo
  • 3mo

Available Homes

  • Active
  • Pending

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

This is the only segment of the market that had an increase in the number of sales from Q2 to Q3! While it was only a slight +5.6% increase, this price range is doing very well (for sellers). Inventory is down -17.1% to a 1.1 month supply and the number of available listings is down to only 14 options.

Homes Sold

3 Months - 38 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

I have never seen this price range so competitive. There are currently only 6 options available for purchase in this range, which is a -33.3% decrease from Q2. This price range is currently sitting at a 1.3 month supply of inventory.

Homes Sold

3 Months - 14 Homes
6 Months - 30 Homes
12 Months - 40 Homes

Average/Month

  • 12mo
  • 6mo
  • 3mo

Months Supply

  • 12mo
  • 6mo
  • 3mo

Available Homes

  • Active
  • Pending

> or = $2,500,000

Downtown San Diego has seen a fairly active market for condos over $2.5m. While it did have a -63.64% decrease in activity this quarter, it is partially due to the quality of the current options available. The good options still tend to move very quickly if they have nice views, especially in the $2.5m-$3.5m range.

Homes Sold

3 Months - 4 Homes
6 Months - 15 Homes
12 Months - 19 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 October 4th, 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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