Welcome to San Diego Blog | August 14, 2011

Downtown San Diego Condo Short Sales

San Diego Condo Short Sale Statistics

Recently many Downtown San Diego Condos have sold as short sales and foreclosures. These have not been the dregs of the market. Not the nightmare foreclosure or Short Sale with wires hanging from the ceiling and holes in bathroom floors where toilets used to be.

On the contrary, we’re talking about Downtown San Diego Condos in the best buildings including The Grande, Cityfront Terrace and Electra, to name a few. This has been an ongoing trend, as residences sold during the Real Estate boom and financed with easy money from 2006-2008 have become distressed.
Lesser quality Downtown Condos continue to stream through current listings, but this trend toward higher quality is a new and current phenomenon.
The table that follows is less than a 30 day snap shot of activity. These are properties that have sold at the lowest prices ever seen in these buildings.

Recent sold/closed foreclosures and short sales in Downtown San Diego Condos

Recent history of Short Sales and Foreclosures

Location              Sale Price      Previous Price   Previous Close     Cash/Loan
Grande #202     400,000       728,000               3/16/2007             Cash
Grande #505     397,900       889,000              9/11/2006                Cash
Electra #3104    480,000      756,000             2/22/2008                Cash
Cityfront #201   435,000      675,000             6/27/2007                Cash
Legend #1504    560,000     957,000             9/27/2007                Cash
Legend #2004   800,000    1,574,000          10/10/2007             Loan
Doma #204        330,000      682,500               5/10/2005                Loan

OK, so what’s significant in this table?

Lots of activity. Although this is a very small sample of all Downtown Condos in San Diego, it demonstrates that many condo owners who bought between 2005 and 2008 are facing serious issues to hold onto their home.

It further shows that sale prices have fallen by 33 to over 50 percent in some Premier Condos.  Perhaps the most significant of all points is that there are a lot of cash buyers in San Diego.

And cash offers are those most attractive to banks and asset managers who are selling short sale and foreclosed properties. However, buyers requiring financing are not excluded!

What you should know and do to buy Short Sale and Foreclosed Condos in Downtown San Diego

Be prepared and be urgent. Understand the market to know when a real opportunity presents itself and act immediately.
Have funds liquid and a proof of funds statement available if you’re a cash buyer. Have a preapproval letter, or be prequalified for a loan. It is extremely important to accept a short escrow period.

Have a strategy prepared for “multiple offer” scenarios. There are a lot of people who know a good deal when they see one. You need to be determined to finish first to beat them.

BE URGENT!!!!! These deals happen so fast that thinking about it means losing the property to someone who was ready to act.

We have realized that there is no neon sign going to drop from the sky announcing “this is the bottom of the market.” What we have done is a great deal of research and networking to identify distressed and preforeclosure properties for our clients. 

We believe-and so do our clients, that the prices on these recent foreclosures and short sales in downtown San Diego are great opportunities. Only the future will tell where the bottom of the market is. But it’s a great time to buy.
Have you been waiting for the bottom of the market? This might be the time. Let’s have a conversation about San Diego Real Estate.

Written by: Dannecker & Associates

Categories: Buyers, Columbia District, Columbia District Real Estate, Downtown San Diego, Luxury San Diego Condos, Marina District, Marina District Real Estate, Relocation, San Diego Real Estate, Uncategorized

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