The sales in October for Downtown San Diego condos was the highest October sales level in the past 5 years. The major contributors to this sales growth are the Columbia and East Village districts which have each had over 90% sales growth over October 2008. Distress sales are well below San Diego County averages with foreclosure sales at 19% and short sales at 17%. Pending sales for Downtown were 81 for October, included in a total of 157 pending sales still on the books, indicating that November will be a strong month as well. The actual number of sales may be lower because of the short work month for banks in November.

Inventory of Downtown San Diego condos was 444 condos at the beginning of October with almost 50% of the inventory being in the Marina and Columbia districts. The reduction in inventory of 10% from 2 months ago combined with the healthy pending sale activity has put the months supply to respectful 4.8 months. However, we still see the Marina district at an excess of supply at 9 months. The distress component of inventory is very low with foreclosures at 4% and short sales at 16%.

The distress component of both inventory and sold condos indicates that the negative price pressures of distress are not playing a major role on Downtown San Diego condo sales. The price pattern is slightly down from 2008 but Columbia, East Village and Gas Lamp each have price increases versus 2008. Month over month price trends are increasing except for East Village and Cortez Hill. Even adjusting for the slightly larger condos sold in October versus September price trends are still generally up.

As long as the distress component of Downtown San Diego condos remains low and the supply and demand remain in the 4 to 6 month range prices should remain fairly stable to up slightly moving forward. As a general statement Downtown condos have performed better in terms of relative sales and prices and this should continue.