San Diego Condo Prices Rising
The average San Diego condo price in downtown has increased 22%
in 2005. This is amazing considering all of the hesitation a lot
of buyer have had with fears of a real estate bubble. This
strong increase is despite the increase in lower priced condo
conversions weighing in.
When the San Diego condo market starting showing appreciation
rates in the early months of the year pundits everywhere started
talking about the "bubble". This is because the San Diego Condo
market has seen such a dramatic rise in prices in the last 4
years. Looking back at history they thought certainly this rise
would run out of steam. They were forgetting the demographic
shift of people getting older and wanting the easy condo
lifestyle. This coupled with the many many improvements to
downtown that the local government is making.
Another reason for the rise in prices is the increasing quality
(and therefore) prices of condos built. People will wait in line
to pay top dollar for top quality. People are not waiting in
line to buy lower quality condos because of the smaller size and
generally fewer amenities. Demand breaks down as follows, view,
location, quality followed by size. Looking for a condo that
will stay near the front of the pack in terms of appreciation,
buy a great view in a great location, of better quality and
don't worry about size. If you buy a very large condo of average
quality in a so-so area with no view you will have a hard time
selling it and it will be at the bottom of the cost/sq.ft. for
downtown.
What's in store for San Diego condos for 2006, decreasing
inventory and more rising prices. To learn more about the
reasons behind this look for upcoming articles from Mark Mills,
RE/MAX Realtor and expert on San Diego Condos. Visit him at
http://www.LiveAtTheTop.com The Source for Downtown San Diego
Condos.