Downtown San Diego Real Estate Market Analysis Archives

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.

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.

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.

Q1 Wrap Up – The Marina

The Marina neighborhood in Downtown San Diego offers, arguably, some of the best real estate in the world. Many of the Marina condos for sale include stunning views of San Diego Bay, the Coronado Bridge, or the Downtown City Lights, and the buildings themselves are pure luxury. The Marina neighborhood’s close proximity to the Gaslamp, Convention Center, and the Petco Park make it an ideal living situation for almost any buyer.

Marina Condos for sale had a strong showing in Q1 2013 with 61 closed transactions. The mid-rise CityFront Terrace condo complex led the way with 11 closed transactions, the most of any Downtown San Diego condo complex. Renaissance Luxury condos came in at a close second, with 8 sales during Q1.

Like many other Downtown San Diego Condo buildings, litigation continued to prove a factor for many Marina condos for sale. Park Place, Pinnacle, and Renaissance all battled litigation in Q1 2013 and only Park Place shows signs of a closure soon. Hopefully, these issues get settles quickly, which would allow some of the Marina neighborhood’s biggest complexes to become fully available again.

Q1 proved to be a quiet one in terms of new construction in the Marina. The vacant lot on 1^st Ave between J and Island still sits empty, as San Diego Developer BOSA Developments holds onto the land. What will be another luxury condo high-rise in the future, BOSA is waiting until economic conditions improve to a level where re-sale comps validate the construction.

During this downtime in inventory all across Downtown San Diego, we’re starting to see the market mold into more of a “sellers market.” While it is definitely still a great time for buyers, considering the record low interest rates, and affordable down payment loan options. The lack of inventory is creating multiple offer situations, which drives up prices. If you’re a Downtown San Diego condo owner, and are on the fence about listing your place or holding on, please feel free to contact us for a complimentary consultation. We look forward to the opportunity to provide you with market data, and guide you through the home sales process.

Q1 Wrap Up – East Village / Ballpark

Last week, we broke down the Downtown San Diego condo sales from Q1 2013. Not surprisingly, the East Village neighborhood led the way with total transactions closed during Q1. East Village condos for sale accounted for 65 of the Downtown San Diego condos sold during Q1, or about 30%.

The luxury condo complex The Mark led the way with 9 closed transactions in Q1. The Mark features 1-2 bedroom homes and a few 3 bedrooms on the penthouse level. With 24 hour concierge, heated pool/spa, fitness center, and gated/underground parking, the amenities at The Mark set them apart from almost all of the other East Village condos for sale and they are proving it with their success in the resale market.

Tied with The Mark for the most closed transactions in the East Village was Smart Corner, downtown San Diego’s newest condo project. Smart Corner is located on C St and Park Ave, and despite a slow start, has seen recent success in the resale market. Smart Corner is held back by location problems, but offers nice units with very basic layouts which allow owner customization. A rooftop spa offers a great place to relax and enjoy a great view of Downtown San Diego.

As with many of the Downtown San Diego condo buildings, litigation still proved to be an issue for the East Village condos during Q1. Park Terrace, Union Square, Alta, and Icon all continued (or began in Icon’s case) their pending litigation issues. Because of the financing problems that those buildings are encountering, all cash buyers are sometimes able to offer less than asking and secure great deals.

The East Village has seen a sharp rise in equity throughout its available units, which has caused buyers that were previously on the fence about listing their homes, to put them on the market. The inventory in the East Village is still below where it should be though, which has driven the prices up due to the lack of supply. Many of our deals this year so far have received multiple offers well above asking price, due to the competitive marketplace. This is definitely what current East Village condo owners were hoping would happen.

For more information about the availability of East Village condos for sale in Downtown San Diego, please contact 92101 Urban Living. We would love the opportunity to speak with you, and help you find your next home.

Downtown San Diego Real Estate – Q1 2013 Wrap Up

Downtown San Diego Real Estate April is well underway here in Downtown San Diego and we just received the Quarter 1 sales numbers from our friends at First American Title. We’re excited to see the upward trend that has been happening across Downtown San Diego, with Q1 2013 finishing up 18% over Q1 2012. We’ve been noticing a steady increase in both the number of units sold, as well as the average sale price. This is definitely a good trend that we expect to continue throughout 2013 and into 2014. With the lack of new Downtown San Diego condo inventory, we expect the resale market to continue to thrive, as first time home-buyers continue to enter the market.

In Q1, we saw the East Village neighborhood lead the way with 65 total home sales. The Mark luxury condos and Smart Corner condos lead the way, with 9 transactions at each building. With 5 active listings and two already pending, The Mark looks like it will lead the way again in Q2. Many of our Downtown San Diego real estate residents have been asking us about the construction on 10^th Ave between Island and J. That big hole in the ground will be the new Urbana Apartments, hopefully completed at the end of 2013.

The Marina neighborhood was a close second to the East Village with 61 completed transactions in Q1. The Cityfront Terrace building on Market St was the leading sales building in all of Downtown San Diego with 11 closed transactions. Some news from the Marina during Q1: BOSA developments big project Park Place looks to be ending their litigation very soon, which should help homeowners there feel better about putting their homes on the market.

Little Italy saw one of the biggest year over year increases of any of the Downtown San Diego neighborhood. Little Italy finished Q1 with 47 sales, which is crazy considering the amount of condo complexes in litigation. La Vita, Acqua Vista, 350 W Ash, Aperture, and the DOMA Lofts are all going through builder defect litigation, which is making it hard for new homeowners to find financing. As these buildings resolve their issues, you can rest assured that Little Italy condos for sale will see a dramatic rise.

The Columbia neighborhood, which only includes six condo buildings (Electra, Grande North, Grande South, Bayside, Sapphire Tower, Treo), had a very strong Q1 with 36 sales. Electra led the way with 9 transactions. The Columbia neighborhood is dealing with a lot of roadwork and construction due to the North Embarcadero Visionary Plan project. Broadway from Pacific Hwy to the water’s edge has experienced on and off closings while the new parks are being built. Columbia neighborhood residents will be happy when all work is completed and they have a beautiful new waterfront to enjoy.

The tree-lined streets of Cortez Hill were hampered by builder defect litigation in almost every residential building. Aria, Cortez Blu, The Mills, Aloft, and the El Cortez all have pending issues that may make financing tough, leaving Discovery as the only litigation-free option in Cortez Hill. Still, 20 Sales were finished up in Q1 with Discovery and Aria leading the way with 5 each.

No surprise here. Bringing up the rear of our Downtown San Diego Q1 results is the Gaslamp district. With only a couple of buildings to choose from, Gaslamp saw 6 sales closed in Q1. 4 on which came from the litigation-bogged Gaslamp City Square. Good news from the Gaslamp, Trellis ended their litigation and as part of the agreement there are no HOA fees at Trellis until May 2015! A fantastic perk for current Trellis residents and prospective buyers.

Overall, we at 92101 Urban Living are very optimistic about the increase in inventory that we are beginning to see. The landscape has undoubtedly shifted from a buyer’s market to a seller’s market. Because of the still record low interest rates, it is still a great time to buy. If you would like any additional information on the current Downtown San Diego Condo landscape, or would like to make an appointment to discuss the inventory, please contact us today.

Little Italy Condos Sold Statistics Jan and Feb 2013

Little Italy Condos have for the last two months had a total of 28 homes sold and is not too far behind the #1 East Village Condos that reached a total of 39 homes sold. A total of 132 homes were sold in Downtown San Diego during this time frame.

The most condos for sale in the Little Italy neighborhood went to Acqua Vista with a total of four homes sold. Breeza, Doma, La Vita and Village Walk all had three condo sales. Porto Sienna, 350 W Ash, Portico and Waterfront had two sales each while Titan, Portico and Moto had one sale each.

Little Italy is the Italian inspired neighbor friendly community where you say good morning to your neighbors and relax at one of the small coffee shops or bakeries. You will also find fine Italian dining along India Street which is the main street that goes from one side to the other of the borders of Little Italy. You have close and easy access to freeways, the waterfront, the Santa Fe Train Station, the Gaslamp, Petco Park and Seaport Village.

This neighborhood has over the last couple of years seen a growth on the residential side when it comes to lofts all the way to high-rises. There are many different options to consider when being a Downtown San Diego home buyer in this neighborhood. The infrastructure will continue to grow and flourish as an impact of the residential growth and this is one of the main reasons investing in Little Italy would be an option along with the urban feel of Downtown living in a small friendly neighborhood.

East Village Condos Sold Statistics for Jan and Feb 2013

East Village Condos has for the first two months of 2013 lead the way with the most Downtown San Diego Condos sold compared to the other six neighborhoods. The East Village has the last couple of years been a very popular place for investors to buy and this is showing in our review of the sold stats that we track each month. The East Village had a total of 17 condos sold in January and 22 condos sold in February 2013. This is a total of 39 homes out of the total of 132 homes sold in all of Downtown San Diego for the first two months.

Smart Corner and The Mark had the most sales with six each. Park Terrace, The Legend, Diamond Terrace, Icon, M2i, Union Square, Nexus and Alta all had three sales each. Last but not least was Union Square and Metrome with two sales each.

The Grande Townhome #105 For Sale in the Columbia District

The Grande Townhome #105 has endless appointments and is one of the largest townhomes in the complex. With almost 2,000 square feet of living space and two outdoor patio spaces this home really feels like a home.

The three levels give you plenty of space and allow for privacy when needed. You will enter into the first level which is street level. You can choose to enter through the entrance on Pacific Highway or you can use the entrance from the complex courtyard area. One of the first features you will notice is the Brazilian cherry hardwood floors that give the home an inviting feel. You will also find the gourmet kitchen with granite counter tops, stainless steel appliances and an open space towards the living room and one of the patios.

The second level consists of the master bedroom suite that includes a private bathroom as well as the guest bedroom and bath. The third level has the second outdoor patio where you could enjoy the sunset and a place to relax. The main room upstairs could work as a third bedroom but it is not classified as one due to the lack of a closet. Most home owners would use this space as a second living room, office or a movie/media room. Other features include: Custom wall paper, triple pane windows, custom window coverings, fireplace, AC dual control and separate controllers for bedrooms and living room, custom lighting, floor to ceiling windows, custom paint, security system with door and motion sensors, two extra wide secure underground parking spaces and a large storage cage.

The Grande is located in the middle of the Columbia District of Downtown San Diego right across from the Santa Fe Train Station. The Little Italy farmers market, bakeries, restaurants and the waterfront is only a short stroll away. Should you want to experience the Gaslamp neighborhood with additional options for dining, entertainment and shopping why not catch the trolley for a few minutes ride or take the 10 min walk through the neighborhoods to experience Downtown San Diego living.

Recent Posts

Categories