Lately, a lot of my clients have been asking me, “So what has the Little Italy and Downtown San Diego Condo market been like?”
Well, I will start with the short version: We don’t have nearly enough inventory for the amount of buyers and this has created multiple offer situations and pushed prices up 32.7% from March of 2021 to March of 2022. If you own a property in the area and have been thinking about selling, please reach out to me, now may be a good time to cash out.
Some more Background:
In 2020, while the suburbs were getting up to 20 offers on detached homes, Little Italy and Downtown San Diego as a whole were, for lack of a better word, dead. The restaurants, which are probably our biggest attraction, were mostly closed or trying to survive on takeout. Our music venues, like The Music Box and Casbah were shut down and incoming flights and cruises were canceled. I remember driving up India Street for blocks without seeing a single soul. It was heartbreaking to see local business owners struggle like this.
The move to the suburbs was on as people looked for larger spaces to work from home and backyards to enjoy the outdoors during lockdowns. This, combined with the lack of tourism which brings our vacation home buyers, caused the real estate inventory in Little Italy San Diego to sit and prices to go down.
Then something happened around March of 2021… As we started to understand COVID and build immunity, the restaurants came back bigger and better than ever with semi-permanent outdoor dining areas and the neighborhood is now busier than ever. Around that time the Downtown San Diego real estate market started to recover as well, quickly.
In March 2020 the median sales price in Downtown San Diego was $548,500.
In March 2021 the median sales price was $565,000
In March 2022 the median sales price was $750,000.
That’s a 32.7% increase in sales prices in Downtown San Diego and Little Italy San Diego between March 2021 and March 2022 !
In the short term, prices will still be on the way up because current inventory is still waaaay too low with only 16 condos currently on the market in the Little Italy neighborhood and 67 in Downtown San Diego as a whole. (92101 zip code excluding the Hard Rock Hotel)
One thing that may slow down the price jumps is the mortgage interest rates, which have gone up around 2% and are currently around 5% instead of the 3% we were used to during this market rally.
Again, for those of you that have thought about selling, this is a call for help! We need inventory, please reach out if you want to maximize your gains. And to you buyers out there let us know if you are looking to buy and we will help you get your offers to stand out and get accepted. We have a great track record with buyers in Downtown San Diego and Little Italy.