When to Buy at Bayside?

Posted on March 15, 2010 | by Denny Oh

PH kitchen 2 10.2009Bosas Bayside at the Embarcadero condos have impressed me more than Id expected them to.  I knew Bosa would deliver high end quality, but that doesnt always translate to a nice condo.  However, Ive become a big fan of downtown San Diegos Bayside condos for a number of reasons.  For one, I think this area, the Columbia District, is going to see a lot of growth and a lot of appreciation.  Its exciting to see the transformation(even if its painfully slow), especially when a huge developer like Bosa is helping out.

Another reason why I like the Bayside highrise, is because of its protected views.  The Bayside is a close as you can get, residentially, to the embarcadero and because of the airport, you have very protected views to the north.  Floor plans like the A, H, N and R which all face north west, have unobstructed bay and city views(from about the 15th floor and up).  I personally really like this north west view because you get to see the bay and the airport “ a view that I think is great to have.

PH kitchen no view 10.2009The views to the south west are also very nice, but theyre not protected.  To the south, you have Lane Field where two hotels will eventually get built and the Navy Broadway complex which will also become home to several highrises.  Additionally, on the south side, you do look into The Grande North, but I personally dont mind that.  Another thing I like about Bosas Bayside condos, is that a public park will be coming in right across the street.  The 15 acre parcel of land between Harbor Drive and Pacific Hwy and Ash and Grape will keep the existing County Administration Center and get some much desires grass around it.

And now back to why I started writing this postif youre interested in buying at Bayside, you might want to act sooner than later.  Bayside has closed on about 90 condos(according to the sales team) and have another 40or so are under contract.  As the number of sales rise, Nat Bosa(the president of Bosa Development) will be less motivated to negotiate with buyers.  Once he gets the money hes put into it, hell be able to sit back and wait for prices to rise, or at least wait for the prices he wants and not what the buyer wants.  Just last week, I helped clients close on a condo at Bayside and we were able to get more than 13% off the list price.  Im worried that in a few months, or less, well see less seller motivation and fewer deals being made.

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Additionally, for those of you who are getting loans, you REALLY should act soon.  I see a 12 month period where well have relatively healthy activity.  After that, buyers will be nauseous from the higher interest rates and only cash buyers will be buying.  Keep in mind, buyers have a short memory.  A 5“7% interest rate might be historically low, but history doesnt matter.  People who bought homes at 18% interest rates are now looking at 4.75% “ they dont care that they paid a lot more in the past.  All that matters is the $1M home you were going to buy at 5.375% is now only an $850K home after a 1.5% interest rate hike. Sure, rates wont go up overnight, but they are going up.  And if you think back not too long ago, the Fed raised rates by 0.25% almost every time they met.

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As you can see, mortgage rates rose about 1 percent a quarter at times.  Another thing to think about is that the protected view units at Bayside are very limited.  Take the H floor plan for example “ theres only two of those in the entire building.  If you have any questions about Bayside condos, or any other real estate in San Diego, please contact Denny Oh at 858“243“2092 or [email protected].

Make sure you have an agent represent you on your purchase and do NOT let the seller’s agent represent you…unless you don’t care about having someone looking out for you.  Call me to schedule a viewing today.  Denny Oh 858-243-2092.

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Click here to see some of the condos for sale in downtown San Diegos Bayside highrise.

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2 Comments

  1. Keahi Pelayo says:

    Your picture speaks a thousand words, looks like a beautiful project.
    Aloha,
    Keahi

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