It may come as a surprise to many, but the downtown luxury high-rise condos are selling well. Naturally, people who are willing to pay close to $1 million for 1500 sq. ft. two-bedroom condo are not your average San Diego buyers. Plus, the high-end luxury market always seems to march to its own drummer. With that said, and combined with a general uptick in sales activity, this may actually be the first sign that San Diego is forming a bottom for both real estate sales and real estate values.
If you are contemplating marketing your property in the near future, it is imperative to select an experienced realtor who can provide you with a comparative market analysis and a professional marketing plan designed to ensure that you achieve top dollar for your property within your marketing time frame.
New kitchen remodel with granite countertops, $25,000, lightweight, metal, faux tile roof $15,000, roll up garage doors $1,000, selecting the proper real estate professional, and following their suggestions… priceless! [tags] San Diego, San Diego real estate,San Diego housing, San Diego condos, real estate bubble, housing bubble[/tags] downtown San Diego condos
It appears that the price for luxury condo in DT still firm during the downturn, because the sellers still “hope” they can come out ahead and choose to let the properties sit on the market. Just look at the Grande built in 2004/2005:
(1) N.#2002 (1625 SF for $1.125M)- 10 months MT
(2) N.#2103 (1336 SF for $875K) – 6 months MT
(3) N.#2603 (1336 SF for $899K) – 7.5 months MT
(4) S.#2101 (1684SF for $1.2M) – 14 months MT
Sure, there are still buyers for the luxury condo, but there are only so many extreme wealthy people who don’t care if they can pay 20% less if they wait.
San Diego real estate is NOT improving. It may be in a slight seasonal pick-up, but the downword trend is still in place.
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Keep your powder dry….the time to purchase San Diego real estate is years off!
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The Median Home Price Does Not Matter At All
Everyone knows that the median home price in San Diego is well above $500,000. The high median home price is often cited as being the main reason that San Diego is unaffordable for first time home buyers. Taken at face value, the statement appears to make sense. Upon further examination however, that statement proves to be incorrect and very misleading. The major reason that the statement misses the mark is that first time home buyers almost never buy homes near the median price. The median price does not apply to them at all. First time home buyers are buying homes priced much lower than the median. Typical San Diego first time home buyers purchase condos in the range of $200K to the low $300Ks. Houses bought by San Diego’s first time home buyers are normally priced in the low $400Ks. It is rare for a first-time home buyer in San Diego County to purchase a home near $500,000. An important point to remember is that first time home buyers are purchasing starter homes, not their dream homes.
The median price is defined as the price point at which half of the homes are sold above and half are sold below. First time home buyers normally purchase nowhere near the median price. A price point that is much more indicative of affordability for first time home buyers would be the median price of home in the overall lower half of home prices.
Other factors that make homes considerably more affordable than many renters think are the tax advantages of owning and the increased availability of first time home buyer assistance programs. The tax advantage can typically put an extra $200 to $400 of additional after-tax money into a new home owner’s pocket every month. First time home buyer financial assistance programs enable nearly any renter with reasonable income, responsible use of credit, and a little money saved up to become a home owner.
The real concern for the first time home buyer should not be the median home price but what overall payment would the buyer feel comfortable with and whether any acceptable homes are available in that price range.
by Mark Harmon
Although their is a mass exodus from the state of California because of outrageous home prices, San Diego is still a paradise that many are willing to try.
Beach all year round. I can live with that.
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