Condo prices in downtown San Diego hit a new high record in the 4th quarter of 2021 with the average price per square foot reaching $684. Prices roughly range from $400 - $1,500 per square foot.
Condo values rose just over 15% in 2021. Over 1,300 individual condo units were sold in 2021, out of 10,850 condos in the downtown market.
Current inventory is extremely tight with only about 50 condos currently for sale. Almost every condo coming on the market receives multiple offers in just a few days, this is happening at both the lower price points and the very high price points.
Demand is strong because San Diego is such a great city in many ways and a lot of existing residents in both the Los Angeles and San Francisco markets are relocating here now they can work remotely as well as a good number of new retirees.
I expect prices of San Diego condos to rise 10-20% in 2022.
Appreciation could be limited to 10% if mortgage interest rates rise above 5%.
If interest rates stay below 4% prices should climb as much as 15%.
If interest rates stay below 4% and the Campus at Horton announces a major tech company is going to relocate a few thousand workers from Silicon Valley to downtown San Diego, those employees will surely want to live downtown adding even more demand and push prices upwards of 20% in 2022.
