Welcome to San Diego Blog | January 6, 2012
Downtown Condos Sales Activity under $500k
According to recent data from First American Title, 75 condominiums were sold in downtown San Diego in November 2011, and 61 of these sales (82%) were under $500,000. Slightly more than half of these under-$500,000 sales (54%) were all-cash transactions.
This high demand for moderately-priced downtown properties and shrinking inventory creates a competitive market atmosphere that requires buyers to be well-informed and capable of taking quick, decisive action when the right opportunity presents itself.
A recent example illustrates this strong market for mid-priced downtown condos. As a realtor who specializes in the downtown San Diego, I had been paying particular attention to two residential buildings in the Gaslamp district, Trellis and Gaslamp City Square.
After two months of following the sales activity in these buildings, a property came on the market that seemed to be an incredible value. It was a short sale in the final stages of lender approval — an ideal time for a buyer to step in and take advantage of the opportunity.
The approved list price was $290,000, and lender approval meant the closing process would be quick and painless. The buyer of this property would benefit from reduced pricing and an average escrow period of 30-45 days. I had a client who had been looking for such a place, so I sent this listing along right away.
This was a spacious, one-bedroom unit on the 10th floor of Trellis with updated finishes, ample storage space, and one parking space. Six days after listing, this property was taken off the market after having received four offers.
$500,000 and under Condos Sell Fast
A recent sale in Little Italy’s Palermo building provides another example of the current market. This was a charming, 645 square foot, one-bedroom unit priced at $235,000 with a private balcony overlooking a lushly landscaped courtyard. After 12 days on the market, the seller had three solid offers, and the unit sold 30 days later at $231,000. The unit had granite countertops, open living space in the kitchen and living room, bathroom with tub, and built-in laundry. The master bedroom accommodated a king size bed and included a walk-in closet. Another unit in this same building recently sold for $5000 above the asking price! It was taken off the market after only six days.
Competing for Properties with Multiple Offers
To prepare for such a competitive marketplace, it is important for buyers to obtain pre-approved financing and have a lender pre-approval letter ready to submit with any offer. Also, it’s good idea to include a financial statement that shows the buyer has adequate funds for a down payment . These two documents establish the buyer’s credibility and financial strength in the eyes of the seller, and give the buyer an advantage when a seller is weighing multiple offers. For more information, questions or comments, please call (619) 246-8400.