Downtown 92101 Q2 Condo Sales Reveal that the Developer Wars Continue
92101 has it’s very own war going on ~ between Developers ~ all fighting for their piece of the downtown sales pie.
Last month’s raw sales data for 92101 confirmed what Broker/Owner Mike Ciampa coined many months ago as the “Developer Wars.” The graph above tells the dramatic story of the skirmish between four types of downtown Seller types: Developers, Re-Sellers, Short Sales and Bank Owned/REOs.
And the winner for the month of May was…
Developers! Developers are soundly outpacing all other Seller types by offering “deals” on their remaining new condo inventory. 49% of the 78 sales recorded in the month of May in downtown 92101 went to the Developers. May 2009 marks the first month since April 2008 that Developer sales exceeded Resales. Unlike previous months in San Diego’s re-development history, this number is NOT inflated due to any one single new community opening with multiple closings.
2nd place went to Bank Owned/REOs with 26% of all sales. 15 of the 20 were in the $300K-$500K price range.
3rd place was a tie between Re-Sale and Short Sale – each finishing with 13% for the month of May. If you were one of the 20 who sold their condo last month as a re-sale or short sale, you live under a very fortunate star! 17 of these 20 were priced under $500K. Only 3 re-sale or short sale transactions in May were priced above $500K.
This data is more than just an interesting statistic for Realtors.
Developers are CHEERING as well as sizing up their fellow competitors. The Mark, The Legend, Electra and Sapphire are losing the high price Buyers to each other. Bayside will soon be included in this roster when it opens this summer. Park Terrace, Atria, Aria and Solara Lofts are competing for the low to moderate price $300K to $600K Buyer. 92101 Urban Living is still unclear about who Breeza competes with as their pricepoints currently seem high and their average square footage seems small.
Bank Owned/REOs are finally finding their liquidation stride. NOTE TO BUYERS: If you are thinking of targeting ONLY these properties, be prepared to compete for the most attractively priced properties with 6 to 10 other Buyers bidding up on the asking price to win the deal. Also know that CASH is KING when buying a Bank Owned/REO! 7 of the 22 properties under $300K and 10 of the 28 properties from $300K-$500K were purchased with ALL CASH offers. Unfortunately, FHA and VA approved Buyers do not compete well with 20% or higher down payments.
Short Sales are finally happening as the Seller’s “negotiators” and the Bank’s “case managers” are finding some common ground. A little Buyer patience is an important ingredient. Be not discouraged about making a 2nd position offer! Many 1st position offers never go the distance.
Finally, check out the way ALL CASH Buyers are making their moves on downtown.
ALL CASH Buyers are stealing the show – and not in just in the under $300K price range. 33% of all May Buyers (26 of the 78) made their purchase with ALL CASH . See the graph below for the purchase price category distribution.
For futher questions about current market conditions or more information about condo sales in each of the four categories above, please go to the 92101 Urban Living wesite or call 619.677.2435 and press “0” followed by “7.” 92101 Urban Living can also be reached via email at [email protected]