Welcome to San Diego Blog | July 7, 2010

Market Absorption Rates for Condos & Lofts Downtown San Diego

Downtown San Diego’s 92101 zip code continues to see the market heat up for condos priced below $450,000.  The market trends show that the sales volume is up for lofts and condos in this lower priced segment and it is looking like it is more of a sellers market in this price range as long as the HOA dues are not too high.  In this price range, we only see about a 2.5 to 4 months supply of Downtown San Diego Condos and lofts.   With this limited inventory and a growing number of buyers in this price range, there is a likelihood of stabilizing prices and the possibility of a slight rebound on prices.

Absorption Rates 92101 for blog 7.10

The trends change as we move into the $450,000-$599,999 price range.  This market seems to be remaining stable, however there is currently an 8 months supply of homes in this category and this would be indicative of a buyer’s marketplace. 

This price category is really the where most of the average 2 bedroom units fall into.  What concerns me is that we are in what are typically our busiest months of the year and the 3 month trend is unchanged fromt the 12 month average.  This could either indicate we are going to have a very slow fall or could be on account of many buyers waiting on the sidelines for the possibility of a decline in prices. 

Absorption Rates 92101 7.5 chart

For the the Luxury condo category, we are seeing a decline to inventory.  With just under a 2 year inventory, it is still a buyer’s market.  There are amazing deals to be had on luxury condos in downtown San Diego right now.  Litigation, short sales and foreclosures add to a market segment that many can’t manage to qualify for loans.  All of these factors added together equal great deals for those who are in a position to buy. 

Interest rates are amazing and great deals are here.  Will you be one of the fortunate buyers to score an amazing buy on a luxury property Downtown San Diego?  Let us show you Downtown San Diego’s best buys!  Contact us for valuable insight into this market.

Written by: chad

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

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>