Welcome to San Diego Blog | February 18, 2010

Downtown San Diego Condo Prices

San Diego Sales Statistics

 * Downtown San Diego  |  * San Diego  |  * National Average  | * CA State Average 

This chart displays the trend of average sales prices in Downtown San Diego, San Diego, the State of California and the National Average. The average sales price of a house in San Diego was $400,063 in December 2009, up 0.06% from November 2009. So let’s take a look at what the trend is in early 2010.

Downtown San Diego Condo Price Trends

As you can see, the CA state average, the national average, and the San Diego average have all rebounded and have started going up.  You can also see that Downtown San Diego Condo prices have not followed the same pattern to date.  Condos Downtown San Diego are still looking for the bottom of the market because of a few key factors:

  • Since the downtown San Diego condo market exploded in the early 2000’s, the prices of downtown properties were higher on average than other areas in the city of San Diego.  People’s ability to buy is mainly in the lower priced homes and Downtown San Diego has less low-priced homes than most of the other zip codes in the City of San Diego.
  • The availability of financing for the high-end San Diego condo market is not readily available and this is even more the case on high-rise properties.
  • An estimated 40% of the downtown condos are vacation homes, second homes, or investment properties.  With the economical “tough times” people are facing, these properties will always be the first properties they will abandon as they don’t directly effect their lifestyle.  Sure, maybe they are losing an investment, but they are not losing the home they are living in. 
  • High HOA dues.  Many of today’s buyers are “First Time Buyers” and they have a high level of sensitivity to monthly HOA dues because they are just scraping by on the new mortgage as is and they don’t value the “lock and leave”, lifestyle that is some wonderful in downtown San Diego. 

What’s to come for the Downtown San Diego Condo Market?

If you look at the graph above, you can see that this is the first time in the last 5 years that the Downtown San Diego Condo prices have fallen in line with that of other homes in the city of San Diego.  As we move out of the current economic downturn, more people will start to realize they too can afford to buy a great San Diego condo this amazing bay front city. 

Because the inventory of condos on the low end of the market where buyers are buying is limited, we will see the market absorb these lower priced condos quickly and should see an increase in properties under $500k.  I expect that we will see the market compress.  As the low end of the market starts to rebound, we will continue to see the high end of of the market come down in value as most people cannot qualify for million dollar loans on second homes at this point in time.

Downtown San Diego is an exciting place to be and the market will only continue to expand as “America’s Finest Teenage City matures and becomes an Adult”. 

Written by: chad

Categories: Buyers, Downtown San Diego, San Diego Real Estate, Sellers

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