Downtown San Diego Condo Prices Dip in April

SAN DIEGO—Downtown San Diego condominium prices decreased 3% in April following a 5% decrease in March, but remain 4% higher year-over-year, according to its Condominium Pricing Index released this week by The Mark Company , a leading urban residential marketing and sales firm.

Erin Kennelly, senior director of research, The Mark Company.

The Mark Company Condominium Pricing Index in April was $643 per square foot, down from $664 per square foot in March. However, this follows four successive monthly price increases, indicating a stabilizing market, the company says. “The price decrease in April may be the result of an influx of new units offered to the public at Pacific Gate ,” said Erin Kennelly , senior director of research, The Mark Company. “However Pacific Gate, the only currently selling new construction development in San Diego, has experienced very strong absorption, with approximately 70 units sold to date at reported list prices of approximately $1,000 per square foot.” The new development by Bosa Development Corporation began selling its 216 units in February, and is the first new condominium development in Downtown San Diego since 2009. “We anticipate a gradual increase in prices in Downtown San Diego for the remainder of 2016, a result of continuing strong demand in a market noted for its lack of available supply,” noted Kennelly. Resale condominium prices decreased by 11% in April from the previous month to $528 per square foot, and are now only 1% higher than the same month one year ago. Resale inventory remains relatively low, with 175 active resale condominium listings in Downtown San Diego, representing 2.5 months of inventory at the current pace of sales. Six months is considered the balance between a buyer’s and a seller’s market. The Mark Company Condominium Pricing Index , part of the firm’s monthly Trend Sheet models the hypothetical price per square foot of a 10th floor, 1,000 square foot new condominium. The Mark Company Penthouse Pricing Index , which applies the same methodology to a new 30th floor, 2,000-square-foot condominium, was $911 per square foot in April, decreasing 3% from $940 per square foot in March, however remaining 4% higher year-over-year. The Mark Company has also released the April San Francisco Trend Sheet , the April Downtown Los Angeles Trend Sheet and the April Downtown Seattle Trend Sheet . All are available for download at www.themarkcompany.com . The Mark Company is a national urban residential marketing and sales firm. Founded by Alan Mark in 1997, the company provides a full range of core consulting services including analytics, design, marketing and sales for urban high-rises and suburban attached properties throughout the Western United States.