Seven months ago I wrote about Downtown San Diego’s Condo Shortage, It’s Coming.
Well, fast forward to today and there continues to be a downward trend on the number of homes for sale throughout San Diego. Below are Two Charts for three different areas of San Diego, Downtown (92101), Carmel Valley (92130), and Scripps Ranch (92131).
Although the statistics vary from neighborhood to neighborhood, the trends are still evident. The number of homes on the market for sale has been decreasing. So, what does this mean to potential home buyers and potential sellers?
Below are charts for Downtown San Diego 92101(click to enlarge):
As of today, there are 181 condos for sale in the MLS for zip code 92101, downtown. This compares to 297 on July 28, 2011 and over 650 in June 2010. So, what does this mean? Well, although the amount of inventory continues to decrease, the selling prices continue to chug along the bottom for quite some time.
The basic theory of as Supply decreases and Demand increases, prices should go up. But they haven’t….YET.
Below are Charts for Carmel Valley 92130 (Click to Enlarge):
As I wrote before, if you don’t have to sell….then DON’T!
But, if you have been thinking about buying, you will only know when the exact bottom of the market occurs after it is already past and you look back at the low point. Interest rates are still incredibly low and there continues to be many opportunities to get financing for individuals with good or excellent credit.
So, should you run out and buy the next “good deal” you can find…NO. I predict that prices will continue to chug along the bottom for the rest of 2012, as will interest rates. However, with inventories continuing to trend downward, consumer confidence stabilizing, and demand from investors increasing, the light at the end of the tunnel is coming.
Below are Charts for Scripps Ranch (Click to Enlarge):