22Jan
By: Ryan Ponce On: January 22, 2019 In: Downtown San Diego, Market Update Comments: 0

2018 Quarter 4 Downtown San Diego Market Update

As anticipated, Downtown San Diego experienced a slow down in Quarter 4. This was different from recent years though. Typically we see a drop in the number of sales in quarter 4, but we also typically see a drastic drop in the amount of inventory. This year, we actually saw a very small growth of 2.26% in inventory when compared to quarter 3 of 2018, but we saw a 27.09% decrease in the number of sales for the quarter. When compared to Quarter 4 of 2017, inventory increased by 90.67% from a 2.68 month supply to a 5.11 month supply.

One thing that is deceiving is that the number of sales in downtown San Diego decreased when pulling numbers from the MLS, but if you take into account the closings at Pacific Gate, there was actually a substantial increase from 2017 to 2018. There were 825 sales in 2017 according to the MLS, but in 2018 there were approximately 949 sales between the MLS and new construction. Keep in mind, Pacific Gate is the first new development on a large scale since Bayside, which was completed in 2009.

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 - 148 Homes
6 Months - 357 Homes
12 Months - 790 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 inventory in downtown, which is currently sitting at a 3.42 month supply. There were 41 listings when pulling these numbers and last quarter there were approximately 12 homes selling per month on average. One bedrooms are moving quickly in this range, but studios have always taken longer to sell.  In quarter 4, this range accounted for 24.32% of the sales, but only 16.27% of the available inventory.

Homes Sold

3 Months - 36 Homes
6 Months - 79 Homes
12 Months - 162 Homes

Average/Month

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  • 6mo
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Months Supply

  • 12mo
  • 6mo
  • 3mo

Available Homes

  • Active
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Search This Price Range

$400,000-$599,999

In my opinion, this is the best price range to be in as a seller and it isn’t bad as a buyer either. It accounted for 39.19% of the sales in Downtown San Diego in quarter 4. That is a huge piece of the Downtown San Diego market. It also accounts for 28.97% of the inventory, meaning there are options to choose from. Sales under $600,000 accounted for 63.51% of all of the sales in our market!

Homes Sold

3 Months - 58 Homes
6 Months - 135 Homes
12 Months - 306 Homes

Average/Month

  • 12mo
  • 6mo
  • 3mo

Months Supply

  • 12mo
  • 6mo
  • 3mo

Available Homes

  • Active
  • Pending
Search This Price Range

$600,000-$799,999

This range had a 32.56% decrease in the amount of sales for the quarter when compared to Q3 of 2018, but it also had a 26.32% decrease in the active listings. It is still moving relatively quickly and accounted for 19.59% of the sales last quarter. Properties with lower HOA dues tend to sell faster in this range (under $600 per month).

Homes Sold

3 Months - 29 Homes
6 Months - 74 Homes
12 Months - 168 Homes

Average/Month

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  • 6mo
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Months Supply

  • 12mo
  • 6mo
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Available Homes

  • Active
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Search This Price Range

$800,000-$999,999

This range took the largest dive as far as the number of sales is concerned. There was a 61.11% decrease in the number of sales quarter to quarter. The inventory increased by 51.65% in this segment, even with a 41.03% decrease in the number of available listings. There were only an average of 2.33 homes selling per month, while there are 23 options to choose from.

Homes Sold

3 Months - 7 Homes
6 Months - 25 Homes
12 Months - 66 Homes

Average/Month

  • 12mo
  • 6mo
  • 3mo

Months Supply

  • 12mo
  • 6mo
  • 3mo

Available Homes

  • Active
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Search This Price Range

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

In this price range, there is a lot of competition. On the MLS, there are 40 listings in Downtown San Diego in this price range, which doesn’t include new construction. On average, there are 4 resale properties selling per month in this range. Now the good news is Savina and Pacific Gate are selling property in this range, which shows there are buyers in this range. They are often choosing to go to new construction versus resale options, which has slowed this segment as far as resale is concerned.

Homes Sold

3 Months - 12 Homes
6 Months - 34 Homes
12 Months - 70 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

We had a lot of activity for this price range last quarter. 4 homes sold, but there are 18 options on the market in this range. Buyers definitely have the upper hand. The good news is in quarter 3, there was only 1 sale in the range, so it was a substantial increase.

Homes Sold

3 Months - 4 Homes
6 Months - 5 Homes
12 Months - 12 Homes

Average/Month

  • 12mo
  • 6mo
  • 3mo

Months Supply

  • 12mo
  • 6mo
  • 3mo

Available Homes

  • Active
  • Pending
Search This Price Range

> or = $2,500,000

There were only 2 sales in this range last quarter, which isn’t terrible, but there are 12 options on the market. This segment has always remained a buyers market, even when other price ranges were at a 2 month supply of inventory. It isn’t a surprise that it remains a buyers market.

Homes Sold

3 Months - 2 Homes
6 Months - 5 Homes
12 Months - 6 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 January 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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