Shortage? What have I been smoking? No comment, but I’m serious when I say a housing shortage is on the way in the downtown San Diego condo market.
When’s the last time you saw a crane downtown building a condo building?
Bayside was probably the last one and that building is over 90% sold, and it takes about 24-30 months to build a new highrise after all approvals and permits have been issued.
As of today there are only 297 properties on the MLS in all of 92101. This compares to over 650 units back in June 2010. That’s right, the inventory is down over 50% in the last 14 months.
So, what does this mean to those that currently own a condo, looking to buy a condo, or looking to invest in the downtown market?
Currently Own A Condo: Well, assuming you don’t need to sell your condo, then DON’T. Since there is still a fair amount of short sale activity taking place, just continue to wait it out for another 12 to 24 months. I anticipate the market will be climbing out of the current pricing slump by then.
Looking To Buy A Condo: What the heck are you waiting for? The pricing levels have hit, are about to hit, or have already hit bottom. It’s impossible to predict the absolute bottom until the market as already started to climb upward. But with interest rates at their current levels, now is the time to BUY.
Especially if this is going to be a primary residence or vacation home. With rental rates climbing steadily, stop paying someone else’s mortgage when you rent and start building your own equity!
Looking To Invest: Millionaires are made when everyone else is watching. As a matter of fact, substantial wealth is created during recessionary periods for those that recognize and act on what is going to seem so obvious to everyone in a few years.
Low Inventory Levels, Low Interest Rates, Low Prices…. Duh!
I personally am looking for opportunities for additional investments in various parts of San Diego. So, I’m putting my money where my mouth is and fully anticipate making money short term and long term.
What are you waiting for? The condo shortage is coming!