The Downtown San Diego Real Estate Market finds itself in “uncharted waters” for available Inventory and New Construction. As of today, inventory of current Downtown San Diego Condos for sale was still under the 150 level. This is a lower amount that when I first started selling Downtown San Diego Condos in 2003. This Lack of inventory is pretty significant considering at that time over half of the Downtown Complexes had not even been built yet. Technically, in 2003 there was not even an East Village or Ballpark District yet. Additionally, back in 2003 there was a growing buyer demand and significant amount of new homes that would be sold in sales offices in almost all the neighborhoods of Downtown.
One significant aspect of the low inventory is that there is no new residential construction that we know of for sure in the near future. Technically…it could be 2016 before the first new Downtown San Diego Residential complex is completed and sold. This is due to several factors. One, the cost of materials for cement and steel is quite expensive. The developer/builder would have to sell the newly constructed units at an accelerated price per square foot to cover the extra costs for building. Two, builders and developers are having an issue financing their construction. Unless they fund the project themselves, there are not a ton of resources for them to rely on in terms of financing.
For a detailed list of all current and planned construction check out the CCDC website for information.
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