05Jan
By: Ryan Ponce On: January 5, 2018 In: Downtown San Diego, Market Update Comments: 0

Year End Market Review For 2017

Last year we saw some growth in the luxury market, but overall, the number of sales were down by 9.24%. We went from 909 sales in 2016 to 825 sales in 2017. This doesn’t take into consideration all of the new construction that is now under contract. Between Savina and Pacific Gate, there are an additional 150+ homes that went into contract in 2017, a large majority of which fall in the luxury market above $800,000. Between $200,000 – $400,000 saw the largest decline in the number of sales, dropping 32.0% from 256 to just 174! $400,000 – $600,000 also saw a small a 6.2% reduction in the number of sales. Almost every price range above $600,000 saw a slight increase in the number of transactions.

We also saw a large increase in the inventory and active listings. The number of active listings is up 61.3% when compared to a year ago. We entered 2017 with just 119 active listings, while we are going in to 2018 with 192 listings. This, combined with the lower number of sales, caused the month supply to go up by 77.8%. We went from a 1.6 month supply to a 2.8 month supply.

In this market, it is extremely important to use a professional. It is extremely important 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 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

3 Months - 215 Homes
6 Months - 443 Homes
12 Months - 825 Homes

Average/Month

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Months Supply

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Available Homes

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$200,000-$399,999

The number of sales in this price range continue to fall gradually each month, which caused a large difference for the year. As mentioned previously, we saw 32.0% less sales in this segment of the market when compared to 2016, but the question is why? I think many of the listings are jumping in to the next price range. It is difficult to find options in Downtown San Diego for under $300,000. Many of the one bedrooms in Downtown are going in to the $400,000+ price category.

Homes Sold

3 Months - 43 Homes
6 Months - 87 Homes
12 Months - 174 Homes

Average/Month

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Months Supply

  • 12mo
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Available Homes

  • Active
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Search This Price Range

$400,000-$599,999

If this price range is gaining inventory that was once previously in the lower price range, why are the number of sales down? I think we are seeing an upward shift across the board. For the most part, 2 bedrooms start $500,000+ and many are beginning to jump up into that $600,000+ range. As this range is gaining more and more 1 bedroom sales, it is losing sales to the next range as well. This price range represents the largest segment of the market, as far as number of sales is concerned, for a total of 38.7% of all sales in Downtown San Diego. It is still extremely low on inventory, with an average of 28 homes selling per month and only 49 available listings.

Homes Sold

3 Months - 84 Homes
6 Months - 169 Homes
12 Months - 319 Homes

Average/Month

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Months Supply

  • 12mo
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Available Homes

  • Active
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Search This Price Range

$600,000-$799,999

We saw an increase in the number of sales by 8.2% in this price range in 2017. We also continue to have low levels of inventory in this range and sit at about a 2.2 month supply. It is a good time to be a seller in this category and I am hoping for even more growth in this range.

Homes Sold

3 Months - 48 Homes
6 Months - 99 Homes
12 Months - 171 Homes

Average/Month

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Months Supply

  • 12mo
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Available Homes

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Search This Price Range

$800,000-$999,999

Surprisingly, this segment saw the largest jump in the number of sales. The number of sales went up by 11.9% and this range accounts for approximately 8% of the downtown market. We are averaging almost 6 sales per month and there are currently 20 active listings. We seem to be hovering around a 3-4 month supply. I like this range for both buyers and sellers when it comes to negotiating. I feel like it is a more level playing field.

Homes Sold

3 Months - 17 Homes
6 Months - 40 Homes
12 Months - 66 Homes

Average/Month

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Months Supply

  • 12mo
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Available Homes

  • Active
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Search This Price Range

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

Under $1,000,000, we staying at or below a 3 month supply, but it is a different story between $1,000,000 – $1,500,000. The market is a bit flooded with property. There are currently 44 available listings in this price range, but we are only averaging about 4 sales per month. This segment accounted for 7.27% of the sales in Downtown San Diego, but represents 22.9% of the current available inventory. I have a feeling many of these buyers are gravitating to new construction and the new construction seems to be creating more inventory as it nears completion.

Homes Sold

3 Months - 12 Homes
6 Months - 26 Homes
12 Months - 60 Homes

Average/Month

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Months Supply

  • 12mo
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Available Homes

  • Active
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Search This Price Range

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

This range is staying pretty consistent, but it always surprises me. We had a listing about a month and a half ago that was priced right around $2 mil. In the first 10 days, we received 3 offers. When property is compelling in this range, it sells quickly. This particular condo was remodeled from top to bottom and had views of the bay and ballpark. It is an amazing property, but we didn’t expect to get that much interest in this price range.

Homes Sold

3 Months - 8 Homes
6 Months - 18 Homes
12 Months - 28 Homes

Average/Month

  • 12mo
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Months Supply

  • 12mo
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Available Homes

  • Active
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Search This Price Range

> or = $2,500,000

Above $2.5 million had a big quarter. It may not seem like it, but there were 3 sales, which is a lot for this price range.  This is such a small sample size, so there isn’t much to look at.

Homes Sold

3 Months - 3 Homes
6 Months - 4 Homes
12 Months - 7 Homes

Average/Month

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Months Supply

  • 12mo
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Available Homes

  • Active
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Search This Price Range

*All information is deemed reliable, but not guaranteed. Information obtained through the Sandicor MLS on January 3rd, 2018.

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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