Welcome to San Diego Blog | February 7, 2010
New Home builders in San Diego see Positive Signs for Future Sales
It’s no secret that most San Diego Home builders have really struggled to survive the past few years since the downturn of the market. Their high land acquisition prices in the mid 2000’s, inability to compete with the low prices of foreclosures and short-sales and tough mortgage guidelines really made it a difficult environment to get buyers to pull the trigger on new homes.
In 2010, New home builders San Diego are starting to see a change in this as they are seeing a good outcome of buyers show up at their grand opening events. Some of these new home developers are even seeing properties go into escrow before their official grand opening. Solterra homes, by the ColRich group just in La Costa has 11 homes out of 38 in escrow and they have not even had their grand opening.
In downtown, Bayside Condos San Diego has been very successful in makings sales even in the luxury market
Bayside San Diego is offering lower prices and a better product than any other high-rise in San Diego. To date, Bayside has sold over 105 condos since its grand opening in September of 2009. They offer great incentives and buyers can chose one of three interior finish color schemes.
In the East Village, San Diego’s ballpark district, The Mark San Diego Condos are seeing huge sales numbers
At one point, the owner of The Mark San Diego decided to stop selling condos with views to the south directly into Petco Park because they were selling too fast and they wanted to balance the buildings sales. They also saw the potential for the market to rise and wanted to save some of the premier view units for a later date when they may be able to sell them at higher prices.
“Homes are selling and the outlook is good,” said Bob Cummings, president of the Barratt Group, who was installed last weekend as president of the Building Industry Association of San Diego County. “Buyers realize we’ve hit bottom and there are signs, especially in San Diego, that overall pricing is going up.”
New home builders are starting to see a demand for new homes because the inventory of resale homes is running at three or four months’ supply. Also, the affordability index is at the highest it has been in the past 8 years so the inventory could potentially be absorbed very quickly.
2009 ended with less than 100 actively selling new sales projects across San Diego county, Reeb said. “Before 2009 they never were below 150,” he said, with the average 250 since 1976. This year, though, the total may sink to 75, as existing projects sell out and only about 20 projects open. With a limited supply of new homes coming on to the market and a steady supply of buyers, we see the potential for home prices to start to see signs of increase.