San Diego Condo Market Inventory Below 500 units at year end
2005
San Diego Condo Market Inventory Below 500 units at year end 2005
The number of available condos for resale in 2005 peaked at 580
in the fall of 2005 and dropped rapidly to just under 500 units
at year end. Through mid January 2006 we have seen a slight
bounce putting the inventory level at 525.
The San Diego condo inventory levels are driven by consumer
demand and the amount of "musical chairs" current owner are
playing plus the amount of newly completed construction. In
2005, downtown saw 358 units come on the market for sale that
were built in 2005. In 2006, expectations are that this number
will not exceed 50 units. That will limit the supply, coupled
with no flagship properties being built in 2006, will keep
current owners put and new buyers scrambling for existing
inventory.
The San Diego condo bounce in inventory was due to people taking
their units off the market for the holidays and putting them
back on. Its anyone's guess what the inventory levels will be at
year end 2006. That depends on several factors, progress of
current revitalization projects, interest rates, and possibly
new job creation or location to downtown. There are a couple of
new high-rise office towers under construction in downtown that
will help support the supply of buyers.
San Diego Condos