Sales Price

The Harbor Club condos, by far, have had the highest average sales price so far this year.  With only four condo sales this year, I’m not sure it’s really fair to place much weight on this statistic, but since the average sales price at the Harbor Club condos was more than 77% above the average sales price, I think I have to.  Keep in mind though, like all the comparisons I’m making in this post, it’s only in relation to the buildings I listed in the chart – Alta, Cityfront Terrace, Discovery, Electra, Harbor Club, Horizons, Park Place, Parkloft, Pinnacle, Renaissance, The Grande, The Legend, The Mark and The Meridian(sorry for the boring read, but this helps with SEO, which helps you find me!).  With an average sales price of $1,146,125, the Harbor Club is more than $807K pricier than the Discovery, which had the lowest average sales price, YTD. 

Price per Square Foot

I’ve never been a big fan of using $/sqft to figure out comps, but it seems like all my clients place a lot of importance on this.  The reason why I don’t like it, is because there are too many variables that affect this factor.  Smaller units typically have higher $/sqft.  Two condos with the exact same size and layout might be $100/sqft apart, solely based on orientation and views.  Top floor units have considerably higher $/sqft, even if the unit directly below it has the same exact view, floorplan and size.  I guess it’s good to look at, but only if you analyze it and not just take it at face value.

With that said, the Harbor Club had the highest $/sqft average.  At $577.60/sqft, the Harbor Club sales were almost 29% higher than the average.  This is primarily because two of the units sold during this time period, are unique floor plans that are rarely on the market.  At Harbor Club, there’s a maximum of three condos per floor.  One of the sales was a “half floor” unit (instead of three condos, there are only two on the floor, each around 2100sqft) and the other was a custom, combined unit – a bubble unit and a one bedroom – that is just over 2500 sqft.  Both of these units also have incredible views.

Parkloft had the lowest price per square foot.  At $267.16/sqft, Parkloft was 40% below the average.  This was probably because the building is going through litigation(which makes it difficult or impossible to get a loan) and because these condos are lofts – meaning no interior dividing walls.  Parkloft is one of my favorite buildings, but they’re not for everyone.  These lofts are open spaces with no bedrooms walls.   Instead, owners use furniture – bookshelves, armoires, etc., to create different spaces.  These condos have exposed ductwork and plumbing, which is another reason why I love it.  However, Parkloft is limited on amenities, but the HOAs don’t reflect that.

Sales

Percentage-wise, The Legend has had the most sales this year.  Having sold 15 condos, this accounts for 8.43% of the entire building’s condos.  This is in part due to the fact that the developer, Bosa Development, still has some unsold inventory that it’s trying to get rid of.  Since Bosa didn’t sell all of the condos at The Legend when they finished construction, they decided to rent some of them and as the leases expire, Bosa is putting them back on the market – they’re doing the same thing with the unsold inventory at Electra as well.  The Legend came in second however, in terms of total condos sold – The Grande won this category with a total of 17 sales, YTD.

The Grande has had the most condos sales, but was just above “average” when you consider the percentage of the building, or in this case, buildings, that sold.  Combined, The Grande North and South, have a total of 442 condos, which includes the townhouses.  Cityfront Terrace comes in second place, with a total of 320 condos and Parkloft has the fewest condos, at a modest 120 residences. 

Horizons and Park Place had the fewest sales, with only 3 a piece(the average was 8).  Horizons also has the lowest percentage of sales, with only 1.42% of the building changing hands.  I’m not exactly sure why these two buildings had such few sales(the average was 3.57% of the building selling) though…maybe people just don’t want to move away from these buildings?

Days on Market (DOM)

Discovery killed the competition in this category and had an average market time of 241 days!  This was more than double the 95 day average for these buildings.  This is because so many of the sales were short sales and foreclosures, which as we all know, can take forever!  This is probably also why Discovery had the lowest average sales price – just $338,222 for its nine sales this year.

The Mark however, had an average market time of just 46 days.  I’m not exactly sure why things moved so quickly here, but several of the seven sales were new sales and not resales.  The Mark was built by Douglas Wilson, who also built Parkloft.  What I like about The Mark, are its high ceilings, contemporary design and attractive amenities.  I love the pool area and it seems to be one of the most inviting pools downtown – it wasn’t an after thought and it gets a lot of sun(and very little, to no wind).  Most of my clients also love the fact that the closets are larger than much of its competition.

Summary

In the end, it comes down to the individual buyer and his/her preferences.  Some people like The Harbor club because of its charm, others prefer The Grande’s views, while others want the level of service that the Meridian provides.  What you, as a buyer, need to do is figure out what’s important to you(view, amenities, location, etc.) and look at a variety of condos before you make your decision.  You also want to learn about how your views/surroundings are going to change, or not change, over the next several years.

If you are in the market, or are thinking about buying or selling, please let me know.  I will show you around and share what I’ve learned, with you.  Denny Oh 858–243–2092 denny@sandiegoh.com

Click here to search homes for sale in San Diego.

Yesterday, Vantage Pointe announced that it “halted sales on the 679–unit condo project and is returning deposits to dozens of buyers who had been waiting to close escrow.”  The San Diego Union Tribune also noted that this was the second time in the last year that Vantage Pointe has had to give deposits back – Vantage Pointe previously had refunded deposits to about 300 buyers due to new lending guidelines that required a higher pre-sale percentage.  It’s hard to say that I’m shocked of the news, rather I’m shocked it took this long.

Currently there are approximately 200 tenants, with plenty of room for hundreds more.  The UT reported that the $280 million project has defaulted on its $210 million construction loan earlier this year and that it has not been successfully sold to any investors. 

The developer, Point of View, is a Canadian company that has never built anything outside of its native country(aside from Vantage Pointe obviously), but appears to be working on a project in Maui.  And while I feel bad for them, I honestly have no idea what they were thinking when they built this development.  The building is in a less than ideal location, it’s far larger than anything else downtown, they didn’t phase the building or sales and the timing was terrible.  As Peter Dennehy, the VP of John Burns Real Estate Consulting, stated, “urban projects are tough with this number of units, they’re tough to pull off unless you have smoking market conditions”….I’d say that’s putting it lightly.

However, I do have to commend Pointe of View for returning the deposits and for paying buyers an additional $8000 since some can no longer qualify for the federal first-time buyer tax credit.  I’m not sure if they’re doing this for everyone who would have qualified, but the UT reported that Pointe of View was doing this for at least one buyer.  Hopefully, someone can come in and turn this project around, but it’s going to be tough.  In my opinion, in order to sell it, an investor/developer would have to come in and restructure the development with fewer, larger condos and lower prices.  I guess only time will tell.

In the second quarter of 2010, the downtown San Diego condos at The Grande, had 6 sales.  Q2 of 2009 had four sales and significantly longer market times.  The average sales price then was $639,475, which was considerably lower than 2010 Q2’s average sales price of $910,166.  Price per square foot in 2010’s Q2 was also higher, by about 10%.  This year’s Q2 $/sqft was also higher than The Grandes’ Q1 numbers. 

The highest priced sale in the second quarter of 2010 was for $1.5M, which was an E unit on the 30th floor.  What was interesting about this sale, was that this condo sold for $125,000 more than the same floorplan one floor higher in the Grande South, which sold about 3 months earlier.  Sure, being in the Grande North versus the Grande South might have played a role in the discrepancy, but that much?  Within two months of the $1.5M sale, the same floorplan in the Grande South, on the 26^th floor, sold for $1.4M.  However, the buyer was an agent and did not pay himself the 3% that the seller was offering – in other words, the true sales price should have been $1,442,000 and not $1.4M. 

So lets look at these sales chronologically:

Based on these sales, the market is definitely getting better.  Per floor, the sales prices for these E plans have gone up from $44,355/floor, to $50K/floor, up to $55,462/floor over just six months!  And by “per floor,” I’m talking about the premium you would pay per additional floor you went up in the highrise, for the same(or very similar) condo.  I realize that $/floor isn’t usually used in determining a property’s value, but since these condos are all VERY similar and it’s a slow market, but it’s hard not to look at this – we’re talking about a 25% increase in six months!

 I don’t think we’ll see any crazy swings in price or activity, but it does seem to be busier than it has been.  YTD, downtown San Diego has had 580 condo sales(on the MLS), which is 17% more sales than during the same time period last year.  Looking only at Q2, 2010 had 277 sales, while 2009 only had 218 sales – almost a 22% increase for this year’s sales.  However, in terms of the average sales price, 2010 is down about 20% for the second quarter only. 

Currently there are 465 active listings on the MLS and 125 that are in contingent status.  Again, “contingent” means that the seller has accepted an offer from the buyer, but is waiting to get approval – typically because it’s a short sale and they need approval from the lien holder(s).  Additionally, there are 153 pending listings – those that are currently in escrow.  Overall, I feel that the market is doing well and things are moving.  With San Diego’s median home price rising and the incredibly low interest rates, buyers and sellers are taking advantage of the incredible opportunities out there.  For more info on San Diego real estate, please contact me, Denny Oh at 858–243–2092 or denny@sandiegoh.com.

Here are some more articles you might want to read:

2009 San Diego Home Prices

The Grande Condo Sales

Click here to see what’s for sale at The Grande Condos

M2i

What I like about M2i the most, is it’s unique design.  CityMark tends to create more urban/industrial styled homes, which I really like.  M2i was built as lofts – meaning that there are no interior walls that separate the living spaces.  In other words, it’s just one big open space for you to decorate and manipulate into your own creation.  However, since many people don’t want their roommates seeing everything they do, many people have had walls/rooms built out and have created more traditional spaces.

CityMark created “38 free-flowing floor plans” that “range from 542 to 1889 square feet” with 11–14ft ceilings.  The most common floorplan is a variation of a rectangle that you would enter near the midpoint of the longer side.  As you enter, the kitchen would be on one side of you, with the living room and balcony in front of that.  Walking further in, you’d have space to either side of the living room, which may have been converted into a bedroom or two.  Obviously there are other floor plans, but this is the most common.  I’ve seen some condos at M2i where the owner has created one or two bedrooms by putting up drywall, or in some cases, sliding walls/doors.  The nice thing about these lofts is that you can do whatever you want to them to create the perfect space for your needs.

I also really like the fact that there are sections of exposed concrete in the condos.  Some of the walls were left unfinished and do not have drywall over them.  The ductwork and plumbing is also exposed, giving it a unique look and feel.  M2i isn’t all concrete and gray though.  I’ve seen several condos/lofts that have been softened up by using paint, or even texturing over the concrete – there’s a lot you can do.

Another thing that I like about the M2i lofts is that the HOA dues are very low, relatively speaking that is.  For a 1,000 sqft condo, you’ll pay around $400/mo, which would be closer to $600/mo in most other downtown buildings.  M2i doesn’t have a swimming pool or jacuzzi, but it does have a nice fitness center and a roof top deck in the 1050 Island building.  Up on the south facing deck, there’s a fireplace, lounge chairs and a BBQ for you to use – it doesn’t matter if you’re in the 527 10th Ave building, or the 1050 Island side – everyone has access to the common facilities.  Parking at M2i is underground, just like almost every other downtown building.

M2i is a mixed use building, meaning that there is some commercial space on the bottom floor.  Currently, there is a Starbucks, a pet grooming place and some other stores.  There are a handful of walk-up lofts here as well, which are nice if you don’t like going through the lobby, etc.  In the middle of the complex is an open air courtyard that basically has some planters and greenery.  My favorite lofts at M2i are the seventh floor condos, which have huge 14 foot high ceilings.  Even though you can’t/won’t use this extra space, it makes the place feel much larger than it is.  The windows at M2i are also very large, many of which stretch the entire length of the wall(s) and go from the floor up to the ceiling.  M2i does not have a concierge service, nor does it have guest parking – but most of the East Village residences don’t either.

Another thing I really like about M2i is the location.  Bounded by Market/Island and 10th/11th, M2i is in a great place.  The developing East Village is an exciting and diverse part of downtown San Diego.  You can walk across the street and go bowling, head over a few blocks to Petco Park, grab a drink at a local bar or be anywhere you want downtown in less than 20 minutes.

The prices at M2i are also very reasonable.  Currently, these lofts are listed and selling anywhere from about the high $200K range for an 883 sqft loft(sold in February ‘10) to the $700K range for a 1,295 sqft loft(currently available).  The bulk of the condos at M2i sell from the mid $300K range to about the mid $500K range.  However, the biggest issue is that there’s very little inventory.  M2i is a popular building and condos typically do not stay on the market very long here.  For those of you who like lofts, but want something a little, well, more, I’d suggest you check out the Parkloft condos…this is what I call the “big boy lofts.”

Click here to see condo’s for sale at the M2i lofts

forward five years, a lot a learning and here we are…at Windermere Signature Properties.  A few weeks ago, I decided to leave Prudential and join Windermere.  It had been on my mind for a while and then when I came back from my trip, I made a last minute decision to jump ship.

I want to make it clear though, that I loved working at Prudential and all the agents I met along the way.  I moved because I wanted something new and there was a great opportunity for me here.  So now I’m still doing the same stuff, but under a new company’s name.  My office is downtown at 560 First Ave(Corner of First Ave and Market Street), so feel free to stop by anytime.  My phone number and email are still the same.  Thanks!

Denny Oh 858–243–2092 denny@sandiegoh.com

With that said, I’m very happy to be back in San Diego and back to work.  As much as I appreciated seeing all these great places, I still love the fact that San Diego is my home!  I apologize to all of you who I wasn’t able to respond to as quickly as I normally would, but am ready to go now.  Please let me know if you need anything.  I look forward to hearing from you soon.

The Quiet Zone Act stretches from Laurel Street, all the way to Park Boulevard and will reduce the places that the trains have to blow there horns, which can reach up to 120 decibels (a gun shot registers at 140 db).  The construction will begin this August and is supposed to be completed by November of 2011.

In Q1 of 2010, the average sales price per square foot at The Grande condos was $476.54…20% lower than Q1 of 2009($595/sqft).  The Grande had eight condos sales in Q1 of 2009 as well, but the average sales price was much higher, at $894,363 – two were REOs and one was a short sale.

Going back to 2008, The Grande had 15 sales in the first quarter, with an average sales price of $884,066 – which was 8.4% lower than 2007’s Q1 average.  Downtown San Diego condos prices have steadily come down over the last four years, despite increased activity…primarily a result of the growing number of short sales and foreclosures.

With 37 active listings, 6 contingent deals, 3 that are in escrow and 13 sales YTD, The Grande seems to be doing well.  There aren’t as many deals anymore and higher end condos are being purchased.  In 2008, The Grande had 19 sales in the second half of the year, a number that isn’t far off from where we’re at today.  Now that the home buyer tax credits are out of the way, it will be interesting to see if activity slows down.

If you have any questions about San Diego real estate, please contact me at 858–243–2092 or denny@sandiegoh.com. Thanks.

Denny Oh

*Note that the “high” and “low” statistics in the charts above are not necessarily for the same units – they are the highs and lows for the sales in the building during that time period.  Thanks Damon.