New Condos Downtown San Diego: Sales Picking up Pace

The most recent stats we have indicate the Downtown San Diego market is improving. Is that true or
not? Looking at the graphs it appears the median prices are increasing. Downtown San Diego 3 Month Sales AverageOnce we reach the end of July
and those stats post, we will start togivea better indication if this is just a blip or if there really is improvement.

From our perspective, it "feels" like a better market. We have several out-of- state buyers whovisitedDowntown San Diego at the end of May for the purpose of purchasinga downtowncondo. One of our buyers purchased a unitat The Legend, while the second buyer choseBreeza. The builders in both properties negotiated very favorable "deals" for our buyers and both escrows will be closed by the end of this week. Both sets of these buyers are using their Downtown San Diego condos for a second home and an easy place to visit. Living close to the airport is a real selling feature to Downtown owners because a cab ride is quick and very inexpensive.

We have noticed that the bottom prices in the market place are creeping upward. Selection under $250k continues to shrink while competing buyers continue to grow. Lenders are feeding the inventory, so far, in a steady manner. Foreclosures are a great buy if you do your homework, since the lender does nothing to a unit or for a unit if they can help it.

• Number of Downtown San Diego Condo SalesLook at the sales chart.Although 2005 had the most number of sales, you can see that sales in 92101 (which is Downtown San Diego) have already surpassed 2008 sales statistics.
  
  I believe there are several reasons for this increase.
  
  One reason is that lenders are actually settingrealistic pricing on many Downtown San Diego units, either as foreclosures or a short sales.
  
  A second reason is that several of the Downtown San Diego buildings have gone thru the approval process for FHA, VA or both types financing. This approval definitely makes it easier for a first-time buyer to find acceptable financing.
  
  Thirdly there is a much smaller amount of new inventory coming on the market. In fact, the new inventory faucet is shortly going to go to a trickle. This market has forced a number of investors to take a step backwards. Bosa is still banking on high end luxury purchasers, ala Bayside by Bosa, but even Bosa has slowed somewhat.
  
  And a fourth reason for the uptick in purchasing is the $8000 tax credit, plus a potential $10,000 (State of California) tax credit. One thing I have learned about these tax credits is that they are good until they aren't good anymore. Money runs out so buyers are seriously "getting" into the marketplace now.
  
  There are still additional reasons why the marketplace Downtown has picked up, but I figured four reasons is about the max anyone wants to read about at one sitting. Numbers are interesting until they become boring.
  
  Take a stroll downtown this week and see all the Comic Con visitors. You will see Downtown San Diego as the cosmopolitan city it has become. It's a long long way from when the Pussycat Theater used to be located in the Gaslamp. I know about the Pussycat because I made my husband take me there many many years ago. It was a one time experience. Trust me, once was enough.
  
  By Sharyn & Victoria Crown, Coronado and Downtown San Diego real estate brokers

  This is part of a series of articles entitled, New Condos, Downtown San Diego Style