Comments on: July-December 2008 – The Grande Condo Sales

By: Gene Finne

Gene Finne — Sat, 18 Dec 2010 22:37:33 +0000

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By: Denny Oh

Denny Oh — Tue, 13 Jan 2009 20:40:53 +0000

Schahrzad,

I agree, there are a fair amount of $1million plus listings at the Grande, but keep in mind there are 2 towers there…we’re talking 442 units! So with 36 condos for sale total, that’s only 8% of the inventory – a very healthy number.

And in terms on the higher end(over $1 million) listings, there are 20 – yes this is a high number, but clearly, some of these sellers are WAY off base.

With that said, there are 5 units in escrow, 3 of which are between $1-1.6 million. But is that really that bad, considering it’s January and our economy is worse than many of us have ever lived through?

And there were 4 recent sales that were right around and well over the $1million mark – I think we’re ok. But like you said, the Grande is a great building and is way undervalued.

Now is the time for buyers to get a great deal.

By: Schahrzad

Schahrzad — Tue, 13 Jan 2009 06:33:15 +0000

The inventory is in the stratosphere is you are a seller of a $1mil and up condo at the Grande.

There are 20 listings over $1 mil, and the I checked all the way to October 1, and the highest sales price is $935K.

That makes it an infinite months supply. OUCH!

Why are 3 of the 5 pendings from January? I guess activity was down in December. The other 2 pendings are a short sale and an REO.

I love that building, and it will eventually bounce back. It’s a classic, and will outperform the newer, more eastern areas of downtown.

By: Denny Oh

Denny Oh — Thu, 08 Jan 2009 21:08:39 +0000

citiboy – thanks for the feedback! Here’s a post I wrote in response to your comment.
http://www.sandiegoh.com/2009/01/08/why-you-need-to-sell-your-home-today/

By: citiboy

citiboy — Thu, 08 Jan 2009 06:14:28 +0000

Denny
EXCELLENT analysis.
Your suggestion to sellers is right on the mark.
The buyer scenario makes perfect sense.
I would take exception with the recovery time of 18-24 months. The high end price range will recover much faster than the mid price range only because of the amount of inventory available.

Soon after Bosa’s Bayside and the Sapphire sell out, the amount of high end inventory will begin to dry up rapidly. This will lead to a stabilization of that sector of the market.

With no new high end projects coming on line any time soon, this sector will begin to appreciate much sooner than the rest of downtown.

The mid range downtown condos have a longer wait since many new project are left with a much larger amount of inventory to sell.