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The Downtown San Diego Real Estate Market For The Economic Mind

I think we can officially say that the Downtown San Diego Real Estate market has made the change back to a “seller’s market.” While its still a great time to buy, it’s definitely not a “buyer’s market.” Let me break it down:

It all starts with the basic concept of “supply & demand.” In this market, at least in the Downtown San Diego market, we have an influx of buyers and a shortage of homes. This generally causes well-priced listings to receive multiple offers within the first week or two on the open market.

The surge in eligible buyers can be attributed to many things including: Record low interest rates, Favorable Mortgage Loan products (FHA Loans only require 3.5% down payment). Living in a desirable area, like San Diego, attracts homeowners looking to purchase second homes and/or vacation homes as well.

The low inventory can also be attributed to things, both within our control, and out of it. The economic recession that the country has experienced many buyers to run into financial problems, and either sell their home for less than they owe (short-sale) or even walk away completely (Foreclosure). The banks were stuck with these distressed properties, which they wanted no part of. To off-load the homes, banks would sell the homes back onto the market at EXTREMELY low prices. Usually these homes were swiped up buy all-cash investors. The result of these fire-sale prices was below market comparables (comps) being littered all over the area, thereby de-valuing all of the real home-owners actual home values. This caused (and is still causing) homeowners, that would’ve considered selling, to sit tight and wait for the market to recover.

The recession also affected the new developers as well. With home prices dropping, it didn’t make sense for developers to build new inventory until the prices rose again. This is evident in Downtown San Diego especially, where we have not seen any new condo developments since 2009, and nothing is slated until at least 2015.

All of these things have formed the “sellers market” that we are currently experiencing. What were seeing is that these multiple offer situations are causing competition. Many homes are being listed above market value, and still selling for 5-10% higher than list price. Each time one of these homes sets an above market comp, the homeowners surrounding it are deciding to sell as well and take advantage. Because of this, the inventory levels are going to return to normal soon, and the market should level out. The average market price will just be higher than perhaps anytime in the past.

Bottom line is, if you’re interested in buying, NOW is the time. Rates are low, but going up. Prices are low, but going up. You could decide to wait… to end up paying more. If you’re interested in selling, NOW is the time. For the next year or so, you’ll be in control of the market. You’ll be able to use buyer competition to your advantage and get top dollar. If you’re interested in either buying, or selling a home in the Downtown San Diego Real Estate market, please contact us here at 92101 Urban Living. We can provide you with complimentary market trends and sales data. We look forward to helping you with your real estate needs.

Downtown San Diego Loft – M2i 709

It’s not very often that I show units just for fun, but lately, I’ve been finding any excuse possible to tour this 1,295 square foot, Downtown San Diego Loft for sale at M2i in the East Village.

This home has been upgraded on every front. Being on the top floor, the unit features 20+ foot, vaulted ceilings with skylights. The flooring has been upgraded to black, engineered, sambuca wood throughout. Tile back splashes in the kitchen, and both bathrooms are extremely elegant. The current owners have installed ceiling tracts that guide 4, floor to ceiling, curtains that can instantly close off the unit to the outside world. 2 build outs convert this large loft, into a 2 bedroom home, but could be removed to return it back to an open loft.

Very creative gadgets were installed in the home as well. The TV was mounted into one of the build outs, which allows it to be swiveled between the living room and bedroom. An ethanol fireplace was installed below the TV and emits a blue, flame less, fire. Surround sound speakers were installed in the kitchen and bathroom, allowing music to flood the entire loft unit. Truthfully, this Downtown San Diego Loft at M2i needs to be seen in person to be appreciated.

M2i 709 is located at 1050 Island Ave and is a loft-style, mid-rise building with moderate amenities (Fitness Center, Rooftop Terrace) and lower than average HOA’s. You’ll find units ranging from 600 square foot, studio units to 1400 square foot, 2 bedroom build outs. M2i was developed in 2005 by Citymark, who also built their sister complex, Fahrenheit, across the street. One of the few Downtown San Diego loft complexes that is still FHA/VA approved, and has not had any problems with construction defect litigation.

After a recent price reduction, this M2i Loft is now listed at $759,000. 2, side by side parking spaces and an additional storage room are also included. If you’re in the market for a luxury loft in the Downtown San Diego area, please reach out to us to schedule an appointment to view M2i 709. I look for every excuse that I can to show it.

Diamond Terrace 705 – Our newest Downtown San Diego Condo For Sale

Diamond Terrace 1 Bedroom Unit in East Village

The complex of Diamond Terrace is located in the heart of one of Downtown San Diego’s most desirable neighborhoods…The East Village. Located on the corner of 9th and J Street…this 12 story moderate complex sits directly across the street from Petco Park. Unit 705 is a spacious one bedroom floor plan with a western orientation. The floor to ceiling windows provide tons of natural light, as well as fantastic views to the western skyline. At night…the towers of the Marina District and Gaslamp light up the skyline. From the private outside patio..there is even view directly to “home plate”. Perfect for sports fans, or anyone who just appreciates a totally unique “Downtown San Diego View”. It is possible to literally watch the game from your private balcony.

The floor plan of this San Diego Condo lays out very nicely. The entrance guides you down a hallway foyer that leads to the large living area. The kitchen space is nicely defined, and features ample dark cabinetry storage and granite counter space. The appliances are all stainless, and there is an additional storage room off the kitchen. Besides “walk in closets”, walk in storage of this size is rare in a Downtown San Diego Condo. Just off the living area, the bedroom space provides nice privacy from the rest of the unit, with large floor to ceiling windows that allow it to feel light and bright. Closet space is “walk in”, adding to the already ample inside storage options. The “jack and jill” bathroom is a bonus feature to the floor plan, because guests will never have to walk thru the master bedroom for access. Location, size, views, and storage make this Diamond Terrace home great for either a couple or single profession who want to live a very urban East Village Lifestyle.

Selling Your Downtown San Diego Condo

Many of our Downtown San Diego condo owners have been contacting us recently and exploring the possibility of selling their home. They are increasingly seeing their neighbors sell for full list price, or even above the list price, which are already above market value. So what is the cause of this recent upswing in the market? Well, it started with the…

Low Prices:

After the downturn in the economy back in 2008-09, we were left with a home sales market full of foreclosures, short-sales, and bank owned properties. These homes were then being resold by the banks to all-cash investors for slimmed down prices, causing a deflation of value in the other homes in the area. It was not uncommon to see home values drop 40%-50% between 2008-2011, due to neighboring homes being let go. In order to shoot life back into the housing market, we saw the government dramatically…

Low Interest Rates:

The record low interest rates are encouraging a lot of renters to jump into the buying pool, and even encouraging current homeowners to buy second homes as investments. The increase in the available buyers, mixed with the low inventory, causes multiple offer situations for homes that are priced correctly. This competition is one of the leading factors that we are attributing to the “over-list prices” that we have been seeing with Downtown San Diego condos recently. Speaking of low inventory…

Low Inventory:

Thanks to the over abundance of first time home buyers in the market over the past few years, and the all-cash investors there to clean up on any of the short sells and bank owned properties, the available inventory has been slimmed down to record lows. Now we have a situation where a large number of buyers are competing with each other over a very slim inventory pool. When a new property hits the market, it is not uncommon to see multiple offers within the first week, all trying to outdo each other. This drives prices up above the “market value” and then becomes the new “comp” for the next home to list at.

This “perfect storm” of events has shifted the Downtown San Diego condo market into a full fledged “sellers market.” Not that it is a bad time to buy though! With interest rates still low, and prices beginning to rise dramatically, it is almost an IDEAL time to buy, before the prices get too high and you have to wait another 3-5 years for a return to normalcy.

If you’re interested selling your Downtown San Diego condo, please contact us for a complimentary market review. We would love to provide you with a complimentary home evaluation and list your home for you.

Featured Rental Listing – 1501 Front St #517

This cute 1 Bd / 1 Ba Little Italy Condo for Rent at Palermo is ideal for a professional or young couple looking to experience Downtown San Diego, but do so in the quiet confines of Little Italy.

This home is 748 square feet, and features two, east facing balconies and an in unit washer and dryer. One assigned parking space is also included in the gated, underground parking garage. Centrally located on Front St and Beech, Palermo Condos are within a five minute drive to everything that Downtown San Diego has to offer. Palermo also features a heated pool/spa, fitness center, community room, and on site HOA manager.

For more information about renting this Little Italy Condo at Palermo, contact Jason Cassity at 619-800-6178 or email [email protected]

Featured Rental Listing – 550 15th St #708

This property video features our newest rental in Downtown San Diego’s East Village. 550 15th St #708 is located at the Element Condo complex and is a completely remodeled 1Bd/1Ba home. The carpets are brand new and the home was re-painted. Stainless steel appliances and granite counter tops give the modern kitchen its character. This home just received a brand new refrigerator and washer/dryer. The owners also decided to take the finishings a step further and installed automatic blinds in the living area and bedroom. The bedroom blinds are black out blinds to help fight that morning sun from the Eastern view.

If you would like to see the rest of our Downtown San Diego rental inventory, please click HERE. Feel free to contact us with any questions.

Featured Rental Listing – 530 K St #602

The 92101 Urban Living Team is happy to provide our latest property video, featuring our newest rental listing at Trellis, in the Gaslamp. This 2 bedroom, 2 bathroom Downtown San Diego Condo for Rent is centrally located to everything that Downtown has to offer. This home features a split bedroom layout, perfect for roommates. The buzz of the Gaslamp can be felt as this home has great views into the Hard Rock Hotel’s Intervention Pool Party during the summer, and peek views of Petco Park. Located on the top floor of Trellis’ West Tower, you have the luxury of not having an upstairs neighbor.

If you would like to see the rest of our Downtown San Diego rental inventory, please click HERE. Feel free to contact us with any questions.

Open House Review – Street Level Treo Condo For Sale

Today I had the opportunity to tour an open house at Treo, in Downtown San Diego’s Columbia neighborhood. This unique, street level Treo town-home has been completely remodeled and looks absolutely fantastic. I have seen the town-homes at Treo before, but the team at City Consulting Group did a fantastic job with this remodel.

As you enter from the street, there is a private patio, which was staged with a three piece, outdoor dining set, and was still spacious enough for more. A great place to relax and enjoy the sounds of the city. The bottom level of this home features formal dining and living areas with a new marble fireplace. Around the stairs and behind the living area is the remodeled half-bath. The modern kitchen is also on the ground level and features upgraded, stainless steel appliances, quartz counter tops and beautiful white cabinets. Up the newly carpeted stairs are the split, master bedrooms. Both bedrooms have second level, street facing views of Kettner and their own remodeled bathrooms. This home also comes with one parking space in the gated/underground parking garage.

The Treo complex itself is an upper moderate building located in the Columbia district between Kettner and India St. Homeowners at Treo have the luxury of a 3rd floor pool/spa, outdoor BBQ area, and community room. As well as a fitness center located on the 4th floor. Treo recently finished their builder litigation issue, meaning that financing is obtainable to most buyers. As with any Downtown San Diego Condo purchase, we recommend speaking to a mortgage lender to find out your buying power ahead of time. Offered at $499,000, this home is moving into the “steal” category. Anytime that a buyer is able to find a 2 bedroom home for sale here in Downtown San Diego, its a great deal. To find it in a building with the amenities of a Treo are even better. Thank you again to the team at City Consulting Group for holding the open house this morning. To view this Treo condo for sale, as well as the entire inventory or Downtown San Diego Condos, visit our Condos page.

Q1 Wrap Up – Columbia

Columbia Condos There is no doubt that Downtown San Diego real estate is in a class of its own when compared to other urban areas across the country. Beautiful views of the Pacific Ocean, the Downtown Skyline and a central location to San Diego’s most exciting night life makes Downtown San Diego’s Columbia neighborhood an ideal location for young professionals and young couples alike.

Located along the waterfront between the Marina and Little Italy, Columbia has been dubbed “Millionaires Row” by many locals because of the expensive real estate and amazing views. Recent high-rise condo developments have transformed the Columbia neighborhood from vacant land and corporate offices into some of the most sought after residential real estate in Southern California. Easy access to the Sante Fe train station and the Downtown airport makes Columbia the ideal place for commuters to Orange County and Los Angeles as well.

We wrapped up a fantastic Q1 here in Downtown San Diego in regards to Real Estate Sales, and the Columbia condos played a helpful role in the market rebound that we started to experience. While small in size (only 6 condo buildings), the Columbia condos are dense with inventory. Downtown San Diego’s tallest residential tower, Electra, led the way in Q1 with 9 closed transactions. The Electra building also just entered into meditation with and may be headed towards a litigation situation, which could hamper sales heading into Q2 and Q3. In fact, three of the six Columbia condo buildings are in litigation disputes (Electra, Grande North, Sapphire) which could impact financing on those units until resolved.

The North Embarcadero Visionary Project is also getting started along the waterfront, with the first phase in full effect. Just below Bayside, on the corner of Ash and Pacific Hwy, is the new Waterfront Park construction project. With an estimated completion date not scheduled until the end of 2013, Columbia condo residents will have to bear the noise burden a little bit longer. The closure of Broadway form Pacific Hwy to Harbor Dr will also affect residents for a few more months.

If you’re interested in taking a look at some of the beautiful real estate that the Columbia neighborhood has to offer, contact us. We’d love to hear from you.

Q1 Wrap Up – Little Italy

We here at 92101 Urban Living have been doing a lot of work in Little Italy lately. I don’t want to necessarily admit that Little Italy is my favorite neighborhood in Downtown San Diego… Ok, yes I do. Everything about Little Italy is charming. World class Italian dining on every street, Influx Coffee Shop on India and Fir, and the Little Italy Mercato all earned my stamp of approval and make Little Italy condos one of the most desirable real estate investments in Downtown San Diego.

As far as real estate goes (this is a real estate blog after all), Little Italy condos have done a fantastic job of keeping the culture that the neighborhood was built with, while incorporating modern and contemporary architecture in the new developments. Famed architect Jonathan Segal has seemed to take a special liking to Little Italy. Segal’s recently completed residential condo building, Q Lofts, is now his 4^th completed Little Italy condo project.

Q1 2013 can definitely be considered a success for the Real Estate market in Little Italy. 47 closed transactions occurred throughout the neighborhood, with the high-rise complex La Vita leading the way with 8 units sold. Just like many Downtown San Diego neighborhoods, litigation and low inventory continued to prevent Little Italy condos from reaching their full sales potential. Complexes such as 350 W Ash, Acqua Vista, La Vita, Aperture, and Porto Siena are all in the midst of builder defect litigation, which can making financing very difficult. Although, for an all cash investor or conventional buyer, the litigation might be the perfect opportunity to buy into these buildings at below market prices.

The North Embarcadero Visionary Plan will continue to affect Little Italy real estate residents going forward into Q2 and the construction will be something for new buyers to consider if looking into buildings near the construction (i.e. Breeza).

If you are interested in purchasing a home in the Little Italy neighborhood of Downtown San Diego, or for any information regarding the Little Italy condo market in general, please contact 92101 Urban Living. We would love the chance to show you around.

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