04Jan
By: Ryan Ponce On: January 4, 2022 In: Downtown San Diego, Market Update Comments: 0

2021 Quarter 4 – Downtown San Diego Housing Market

Downtown San Diego had a really good 4th quarter, but the lack of supply is slowing down the activity in the area. We now only have 63 total listings in all of Downtown San Diego, which includes 13 units in the Hardrock Hotel that are only useable for 28 days a year. Even with the lack of inventory, the number of sales were up 8.8% when compared to Q4 of 2020. That is remarkable considering the amount of active listings is down -72.6% compared to a year ago!

When measuring Quarter 4 to Quarter 3 of 2021, sales are down in almost every segment of the market, but that is to be expected. Overall, there were 20% less sales compared to last quarter, but the number of active listings are down -37.6%. This has created a stronger seller’s market. We are seeing a lot of buyer demand, but the lack of supply is limiting the activity in Downtown. For example, on average 33 homes were selling per month between $400,000 – $599,999 yet there are only 6 active listings! The number of sales would increase if there were more options for buyers.

Between $400,000-$1,499,999, there is less than a 1 month supply of inventory in Downtown San Diego. This indicates that it is an extremely strong sellers market. While there is technically more inventory above $1.5m, it is still low on inventory and favors sellers. Bottom line is Downtown San Diego needs more inventory and the shortage is causing prices to push up at a rapid pace.

All Downtown

Homes Sold

3 Months - 272 Homes
6 Months - 619 Homes
12 Months - 1284 Homes

Average/Month

  • 12mo
  • 6mo
  • 3mo

Months Supply

  • 12mo
  • 6mo
  • 3mo

Available Homes

  • Active
  • Pending

$200,000-$399,999

This segment of Downtown’s market is really dwindling because there aren’t many options under $399,999. When I started doing these updates back in Q4 of 2014, there were 166 sales during that quarter, 53 of which were in this segment. That means this price range accounted for 31.9% of the activity for that quarter. In Q4 of 2021, only 19 of the 272 sales happened in this price range. That is only 7.0%. It is also important to note that 13 of the 15 available listings in this price range are located in the Hardrock Hotel, which are only available for 28 days a year for owners to use. The remainder of the year, the properties are rented out by the hotel, which manages the rooms, and the owners make rental income.

Homes Sold

3 Months - 19 Homes
6 Months - 48 Homes
12 Months - 139 Homes

Average/Month

  • 12mo
  • 6mo
  • 3mo

Months Supply

  • 12mo
  • 6mo
  • 3mo

Available Homes

  • Active
  • Pending

$400,000-$599,999

To say this price range is low on inventory is a drastic understatement. There are currently 33.3 properties selling in this price range per month on average, but there are only 6 active listings. That means there is only a 0.18 month supply of inventory. There are also 21 properties under contract in this price range.

Homes Sold

3 Months - 100 Homes
6 Months - 237 Homes
12 Months - 483 Homes

Average/Month

  • 12mo
  • 6mo
  • 3mo

Months Supply

  • 12mo
  • 6mo
  • 3mo

Available Homes

  • Active
  • Pending

$600,000-$799,999

If we compare this price range to 1 year ago, the number of sales during the quarter is up 8.2% and inventory is down -81.1%! While number of sales are down about -20.5%, there are only 9 active listings in this price range, which is a -40.0% decrease from last quarter.

Homes Sold

3 Months - 66 Homes
6 Months - 156 Homes
12 Months - 320 Homes

Average/Month

  • 12mo
  • 6mo
  • 3mo

Months Supply

  • 12mo
  • 6mo
  • 3mo

Available Homes

  • Active
  • Pending

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

This is only 1 of 2 price ranges that had growth in the number of sales from Q3 of 2021 to Q4 of 2021. While it was only a +2.6% increase, there was a +160% increase when compared to 1 year ago. On top of that, there are currently more properties in escrow than there are for sale and inventory is down -23.4%. Properties with a view are moving very quickly in this price range.

Homes Sold

3 Months - 39 Homes
6 Months - 77 Homes
12 Months - 134 Homes

Average/Month

  • 12mo
  • 6mo
  • 3mo

Months Supply

  • 12mo
  • 6mo
  • 3mo

Available Homes

  • Active
  • Pending

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

The number of sales in this price range is down -28.6% in comparison to last quarter, but there are also currently 7 properties in escrow in this price range. That would suggest that this price point will start 2022 off strong. There are currently only 6 active listings, so there are more homes in escrow than there are available for buyers.

Homes Sold

3 Months - 10 Homes
6 Months - 24 Homes
12 Months - 42 Homes

Average/Month

  • 12mo
  • 6mo
  • 3mo

Months Supply

  • 12mo
  • 6mo
  • 3mo

Available Homes

  • Active
  • Pending

> or = $2,500,000

This is the second price point that had increased activity in Q4, but with such a small sample size one sale means a lot. That being said, there are currently 10 properties active, which is a -28.6% decrease in active listings. While 10 listings may seem like a lot if there are 5 homes to sell in the last quarter, that includes homes ranging from $2,595,000 all the way up to $11,950,000.

Homes Sold

3 Months - 5 Homes
6 Months - 9 Homes
12 Months - 21 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 January 3rd, 2022.

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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