January 2017
The number of homes sold in Q4 declined by 13.9% (34 sales) when compared to Q3 of 2016, and inventory fell to the lowest amount I have ever seen in the Downtown San Diego Market. As of January 3rd, we only had 119 total listings in Downtown San Diego. Last quarter, there were an average of 70 homes selling per month, so there is currently only a 1.7 month supply of inventory! During this time last year, we had 160 listings on the market (34.4%+) with an average of 61 homes selling per month.
I predict Q1 of 2017 will be a strong quarter. Interest rates are creeping up, which will push many buyers to lock in historically low interest rates and will add some motivation. Anything under a 6 months supply is a sellers market. A balanced market is in the range of 5-7 months, where neither buyers nor sellers have the upper hand. Anything above a 7 months’ supply favors the buyer. In general it remains a seller’s market, but I analyze each segment of the market below.
It is a great time to be a seller! In this market, it is extremely important to use a professional. Simply selling your home is easy, but the goal is to net the most money possible. 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 in this highly competitive market, 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.
All Downtown
Homes Sold
Average/Month
- 12mo
- 6mo
- 3mo
Months Supply
- 12mo
- 6mo
- 3mo
Available Homes
- Active
- Pending
$200,000-$399,999
This price range has remained relatively consistent over the last 6 months. While there are less homes selling per month on average when compared to 12 months ago, inventory is also lower. This is greatly caused by Aloft in Cortez Hill, which was previously rented but the developer decided to sell the units. The project is now completely sold out, which reduced the available listings in this price range by 31.6%.
Homes Sold
Average/Month
- 12mo
- 6mo
- 3mo
Months Supply
- 12mo
- 6mo
- 3mo
Available Homes
- Active
- Pending
$400,000-$599,999
We actually saw inventory grow slightly in this price range. We went from selling 33.67 homes on average in Quarter 2, to selling 24.33 homes per month. While there were 27.7% less sales happening per month, there is still only a 1.64 month supply.
Homes Sold
Average/Month
- 12mo
- 6mo
- 3mo
Months Supply
- 12mo
- 6mo
- 3mo
Available Homes
- Active
- Pending
$600,000-$799,999
In this price range, we went from selling 38 homes in Quarter 3, to selling 51 homes in Quarter 4. That is a 34.2% increase in the number of sales! Inventory also fell drastically down to only a 1.29 month supply and there are 29.0% less listings available now. This is the hottest segment of the market in Downtown San Diego real estate.
Homes Sold
Average/Month
- 12mo
- 6mo
- 3mo
Months Supply
- 12mo
- 6mo
- 3mo
Available Homes
- Active
- Pending
$800,000-$999,999
This range took one of the largest hits. We went from selling an average of 7 homes per month, down to an average of just 3.33 homes. That is a 52.3% reduction in the number of sales for the quarter. While there was a huge reduction in the number of sales, there was also a large drop in the available listings. We went from 19 available in Quarter 3, down to only 10 options in Quarter 4. I expect to see a rebound in this range in Q1 of 2017.
Homes Sold
Average/Month
- 12mo
- 6mo
- 3mo
Months Supply
- 12mo
- 6mo
- 3mo
Available Homes
- Active
- Pending
$1,000,000-$1,499,999
In Quarter 4 of 2016, there were only 14 sales in this price range. We entered quarter 4 with 11 homes in escrow that fell in this price range. We will enter Quarter 1 of 2017 again with 11 in escrow that fall between $1 mil – $1.5 mil. There are also only 16 listings available in this price range, which is a 40.7% reduction from the number of available listings when entering last quarter.
Homes Sold
Average/Month
- 12mo
- 6mo
- 3mo
Months Supply
- 12mo
- 6mo
- 3mo
Available Homes
- Active
- Pending
$1,500,000-$2,499,999
This price range fell from a 4.5 month supply to a 3.86 month supply, but much like the rest of the price ranges, the number of sales fell as well. There are 25% less options to choose from in this range. This does not include all of the new home sales or available options in Pacific Gate by Bosa.
Homes Sold
Average/Month
- 12mo
- 6mo
- 3mo
Months Supply
- 12mo
- 6mo
- 3mo
Available Homes
- Active
- Pending
> or = $2,500,000
Only 1 home sold in this range over the last 3 months, but there are also currently 2 properties in escrow going in to Quarter 1 of 2017. There are only 5 listings on the MLS in this range, 2 of which are in Pacific Gate.
Homes Sold
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 Sandicor MLS on January 3rd, 2017.
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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