Cash vs. Financing, 1st Quarter 2010
The total amount of Downtown San Diego Condos and Lofts sold in the 1st quarter of 2010 was 260 units. Condos and Lofts that were financed totaled 179 deals or 69% percent of the total. With low interest rates, buyers have an incentive to finance their home investments while money is Cheap to borrow.
98% of the loans were either Conforming (under $495k) or Jumbo Conforming (Under $695k). Only 2 Jumbo loans in 179 were above the $695 limit. This means that the luxury purchases in Downtown San Diego were obtained with significant down payments and cash injections.
With this said.the more impressive and surprising statistic was that 31% of the total sales were all cash transactions. Buyers are not afraid to invest significant amounts of cash into their Downtown market investments. This could represent a strong investor perception of the stability and value of Downtown San Diego Real Estate as the market continues to show marked improvements.
To read our blog on SDNN click on Cash vs. Financing, First Quarter 2010 and to read our former blogs click on Downtown San Diego Condos & Lofts Sold by Neighborhood in the 1st Quarter of 2010, Downtown San Diego 1st Quarter Condo and Loft Sales, Developer Sales to Decrease and Resales to Increase in Downtown San Diego and Are there any Identifiable Trends in Real Estate Sales for Downtown San Diego Real Estate? ')}