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Data for November 2006 shows downtown San Diego condos are still rising in price despite the drop in the number of units sold. The sold price per square foot for condos in November was 9, compared to only 7 November 2006, representing an annual appreciation of 0.3%.

The number of units sold for the above period shows a decrease of 52%, from 65 units sold in November 2005 to only 31 for November 2006. The firmness in pricing shows the strength of the downtown condo market. One reason for the strength in these numbers is that the smart money (the wealthy people) have the desire to live in downtown and are not influenced by the media reports of a pending market to crash. This is one reason the average selling price of a condo in downtown has risen to 4,000 from 2,000 over the last 12 month period. While this appreciation rate will not make anyone rich overnight it's a lot better than decreasing values as seen in some parts of California and the rest of the nation.

Realtors know there are buyers waiting on the sidelines watching the market trying to time it and jump in at the bottom. It's hard to see the bottom when the prices are still moving upward. While the mainstream media has been warning of a housing bubble for years we have yet to see it even coming on the horizon. Looking at downtown's most sought after neighborhood, the Marina District, the average availability level in each of the top 10 buildings averages only 7%. For example in a building with 100 units, only 7 are for sale. Inventory remains tight in the "better buildings" and in the upper price range. Downtown will soon enjoy another 1,500 residents moving into the East Village with the completion of The Mark, ICON and Alta condo towers expected to be completed in spring 2007.

For more information on San Diego Condos visit San Diego Condos | Downtown San Diego Condos| Pinnacle | Electra

About the Author: Realtor and downtown San Diego condo expert.