Myth #3: We haven’t reached the bottom yet, the best pricing is yet to come…
Hi Sports fans! Here is some news to stoke the conversation around the water cooler. Does anyone stand around a water cooler anymore? I saw an episode of The Office where Dwight moved the water cooler to be right next to his desk so he could get in on what’s going down. Well, you don’t have to be next to Mr. Schrute or a water cooler. I’m gonna tell you about some numbers I have seen thanks to the good folks at Market Pointe Realty Advisors regarding Downtown San Diego real estate.
Let us begin with resale numbers. The average price of a home in downtown San Diego actually went up. This is the price tag on the home at close of escrow. In 2007 it was $654,706 and this year it is $673,361. However, there is great news about that- the square footage is up from 1,165 in 2007 to 1,206 in 2008. So that means the price per square foot went down. You can see these aren’t drastic changes. It’s dipped $4 a square foot from 2007 to 2008. As opposed to the $49 per square foot dip that happened from 2006 to 2007. It looks like we are bottoming!
Now on to the New Home market. Much more of a drastic increase/decrease in the three categories. The average price for a new home shot up from $569,261 to $640,619 from 2007 to 2008. BUT, the square footage went from 947 square feet to 1,089. That’s 142 square feet! You were basically getting another room in the house. The price per square foot went from $601.37 down to $588.05. Overall in 2007 (Q1-Q4) price per square foot went from an average of $739.91 down to $601.37. If you bought new construction at the end of 2007 then congratulations!
So there you have it. The hard cold numbers. They have no soul, don’t rely on emotion or “what if”. They just are. You’ve seen it, you cannot unsee it.