The downtown condo market has become something of a scapegoat for San Diego’s flailing real estate market. Local real estate cheerleaders who once said there was nothing to worry about in the local market now point downtown and say: “That’s where the problem is, but we’re fine” as a whole.
There was a time when downtown San Diego was seeing inventory raises of 10, 20 or even 30 new condos being put on the market every week. Increases like these in inventory means increased supply, something that generally drives down prices.
However, the rate at which condos are being put on the market in downtown has cooled of late. Indeed, for the last few weeks the total inventory of condos has been relatively flat – 537 condos for sale at the end of May, 540 in the first week of June, 548 in the second week and 550 as of Wednesday, June 21.
Though the number of condos on the market is only inching up, the median price of condos selling in the 92101 ZIP code has been eroding over the last few weeks. Four weeks ago, the median selling price was $630,000. It’s since fallen to $614,900.
Of course, 550 condos is still a large number, especially considering the much cooler sales rate in downtown. There is still a backlog of condos waiting to be sold, and with another 9,000 or so condos in the planning or construction phases, it’s going to be interesting to keep watching what happens to prices in downtown.
All of this information is collated on the Web site of Little Italy Realtor Lew Breeze.