This months issue of the San Diego Metropolitan was devoted specifically to the 92101 zip code and Downtown San Diego Real Estate. There was an interesting article written by Dennis Serraglio (a representative of BOSA Development) entitled: Bigger and Better Homes. 92101 Urban Living comments on statistics pertaining to the analysis of the Downtown San Diego Real Estate market in: Myth 2: There is a Glut of Inventory in Downtown San Diego. It’s always interesting to see and hear the developer analysis of the resale market.
Dennis Sarraglio comments that while sales are currently down in downtown San Diego, so is the rate of residential developments. There are currently 340 resale listings compared to last years 550 at this time. (92101 Urban Living would like to make note that this number is net given the subtraction of short sale, distressed properties and sales offices). This reduction in inventory will undoubtedly cause a turnaround in the market within the next 6-8 months. When this inventory dries up we will see condo prices begin to increase.
Additionally, future developments will begin to pop up in downtown outskirts because most of the core has already been developed. We will see these future projects both north and east causing these areas to see revitalization. Add to that the improvements of the North Embarcadero Plan and you can see the potential for some desirable neighborhoods.
These future projects will also boast averages of 1600 sq ft due to the influx of wealthy second home buyers from
Mexico, desert communities and baby boomers who are downsizing.
San Diego proves to be one of the least expensive areas to buy for this new demographic market when compared to LA, Vancouver or Seattle.