Downtown San Diego Condo prices and home prices all around the San Diego area are starting to increase. One factor to the increase can be home owners who owe more money on their mortgages that what their homes are actually worth.
Realtor Magazine and their article “Underwater Home Owners Help Lift Home Prices?” informs that this could be the case in certain markets. Home owners who are underwater and who risk taking a loss on the sales price don’t want to sell. This is leading to a decrease of inventory and gives home buyers less to choose from. This is bringing up the prices on homes that are available for sale.
Downtown San Diego has experienced a shortage of inventory for some time now. There are currently 173 units for sale in Downtown San Diego and many of these are distressed properties such as short sales and bank owned.