04Oct
By: Ryan Ponce On: October 4, 2019 In: Downtown San Diego, Market Update Comments: 0

2019 Quarter 3 Downtown San Diego Market Update

Downtown San Diego is an interesting market right now. For the most part, things have flattened out and it is now a balanced market. In Downtown, there were an average of 62.33 homes selling per month, which is a 2.09% decline when compared to the second quarter. 87.7% of sales in the area are happening under $1,000,000 without taking into consideration any new construction.

Pacific Gate is down to a handful of residences. I believe they have less than 10 developer homes available now. Savina has passed 200 sales and is now over 70% sold out. Many of these residences fall above the $1m price range and they would paint a different picture.

In this market, it is extremely important to use a professional. It is vital 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, it is extremely important to work with a professional who knows the downtown neighborhoods! Now that inventory is growing, working with a professional that knows and understands the Downtown market is vital. It will help you save time, find the right property for you, and lately there have been options coming up that are drastically under market value. Work with someone who can help navigate the market.

All Downtown

Homes Sold

3 Months - 187 Homes
6 Months - 381 Homes
12 Months - 682 Homes

Average/Month

  • 12mo
  • 6mo
  • 3mo

Months Supply

  • 12mo
  • 6mo
  • 3mo

Available Homes

  • Active
  • Pending

$200,000-$399,999

This price range has the lowest amount of inventory, with an average of 14.33 homes selling per month and 48 options to choose from. This segment of the market accounted for 22.99% of the sales in Q3, but only represents 15.05% of the current active listings.

Homes Sold

3 Months - 43 Homes
6 Months - 90 Homes
12 Months - 160 Homes

Average/Month

  • 12mo
  • 6mo
  • 3mo

Months Supply

  • 12mo
  • 6mo
  • 3mo

Available Homes

  • Active
  • Pending
Search This Price Range

$400,000-$599,999

This price range had an increase of +2.78% in the number of sales when compared to Q2 and there are -13.46% less listings available. Month supply of inventory dropped down to 3.65 months, which is a decrease of -15.80%. Even though the numbers suggest things are moving fairly quickly due to low supply, there are a good amount of listings that are sitting. If they are priced incorrectly or undesirable, they aren’t moving.

Homes Sold

3 Months - 74 Homes
6 Months - 147 Homes
12 Months - 260 Homes

Average/Month

  • 12mo
  • 6mo
  • 3mo

Months Supply

  • 12mo
  • 6mo
  • 3mo

Available Homes

  • Active
  • Pending
Search This Price Range

$600,000-$799,999

There was a -16.67% decrease in the number of sales this last quarter. Between the decrease in sales and the slight increase in active listings, the inventory shot up by +21.85% to a 6.6 month supply of inventory. It is interesting because I consider this the “bread and butter” price range for two bedrooms in downtown San Diego. Typically there is a good amount of activity in this range.

Homes Sold

3 Months - 30 Homes
6 Months - 67 Homes
12 Months - 129 Homes

Average/Month

  • 12mo
  • 6mo
  • 3mo

Months Supply

  • 12mo
  • 6mo
  • 3mo

Available Homes

  • Active
  • Pending
Search This Price Range

$800,000-$999,999

There were 17 sales in this price range in Q3, which is down -19.05% when compared to Q2. In quarter 2, we saw a large increase in activity in this range, so it makes sense that it is down a little. There are currently 35 listings available in this range, which is up +25%. We are currently at a 6.18 month supply in this range, which suggests it is a balanced market. Also, this range accounted for 9.09% of the sales this last quarter and it accounts for 10.97% of the inventory, so those numbers are fairly close.

Homes Sold

3 Months - 17 Homes
6 Months - 39 Homes
12 Months - 59 Homes

Average/Month

  • 12mo
  • 6mo
  • 3mo

Months Supply

  • 12mo
  • 6mo
  • 3mo

Available Homes

  • Active
  • Pending
Search This Price Range

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

Above a $1,000,000 for resale has slowed down overall. There were 16 sales last quarter in this range, but there are also 48 available listings. New construction seems to be attracting a large majority of buyers in this range. While I do love Savina, there are some deals to be made in the luxury resale market. No, not every seller is eager to sell, but there are some very good buys out there right now.

Homes Sold

3 Months - 16 Homes
6 Months - 30 Homes
12 Months - 55 Homes

Average/Month

  • 12mo
  • 6mo
  • 3mo

Months Supply

  • 12mo
  • 6mo
  • 3mo

Available Homes

  • Active
  • Pending
Search This Price Range

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

In Quarter 2, there were 0 sales in this price range. In Quarter 3, there were 4 sales. Going into Quarter 4, there were 5 sales currently in escrow. These numbers are a bit surprising. That being said, there are still 27 active listings to choose from. Options that are spectacular are still selling, but only the best options in this range tend to actually sell. Items like view, location, building quality, interior finishes, layout, and of course price, all play a huge role.

Homes Sold

3 Months - 4 Homes
6 Months - 0 Homes
12 Months - 11 Homes

Average/Month

  • 12mo
  • 6mo
  • 3mo

Months Supply

  • 12mo
  • 6mo
  • 3mo

Available Homes

  • Active
  • Pending
Search This Price Range

> or = $2,500,000

It is a bit intriguing when looking at this price range. There were 3 sales in Quarter 3 and there are currently 12 options on the market. Out of the 3 sales, 2 of the options were on the market for less then 30 days. That tells me that people in this range are waiting for something specific or spectacular to come along. Whether it is a certain view, outdoor space, or a specific floorplan, they are waiting for one reason or another. I represented one of the three buyers this quarter. When we saw the option, which had been listed for less then 20 days, he thought about potentially waiting. We then took a look at the history of sales, available plans that checked all of the same boxes, and the likelihood that something like that unit would come up again. We analyzed every building in Marina District. It was a low possibility, so he decided to jump on it earlier then expected.

Homes Sold

3 Months - 3 Homes
6 Months - 4 Homes
12 Months - 8 Homes

Average/Month

  • 12mo
  • 6mo
  • 3mo

Months Supply

  • 12mo
  • 6mo
  • 3mo

Available Homes

  • Active
  • Pending
Search This Price Range

*All information is deemed reliable, but not guaranteed. Information obtained through the San Diego MLS on October 3rd, 2019.

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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