Welcome to San Diego Blog | May 18, 2010
Downtown San Diego Real Estate Feels Confidence Boost
The National Homebuilder’s association said yesterday that new home builders are feeling more optimistic about the new home sale market than they have in the past three years.
The association uses a survey called the National Association of Home Builders Housing Market Index to track builder sentiment. This time around, it was at 22, up three points from April and its highest level since August 2007. In California, the index rose seven points to 20, but San Diego is believed to be amongst the strongest areas within California
Real Estate Development Downtown San Diego has Positive Outlook
The 100-point index system sets the number 50 as the midway point between a positive and negative outlook for future building — the higher the mark on the index, the more optimistic the outlook. At the height of the peak, the index rose to 78 in December 1998. The index fell to its lowest point in January 2009 with a reading of 8.
In Downtown San Diego, one market analyst, Russ Valone ,says he is seeing increased optimism in the form of more feasibility studies ordered by builders. A year ago his company, MarketPointe Realty Advisors, had virtually no studies under way. Since January, they have conducted about a dozen of these studies for developers.
“I’m talking to more builders who are getting ready to start projects,” Valone said, “and that in itself is a semblance of confidence.”
Potential Real Estate Boosts for Downtown San Diego Real Estate
With news like the talks of a new Chargers Stadium in Downtown San Diego’s East Village, we are seeing a lot more developers and investors having positive conversations about future developments. The key for developers to make good money in the near future is for them to be ahead of the curve and the current downtown San Diego real estate market offers many opportunities for those with the capital to invest.
Studies have shown that over the next 20 years the population of Downtown San Diego will more than triple. Housing is a staple need and once housing is in place, then retail and commercial developments will follow. Downtown San Diego Real Estate will see a huge growth over the next two decades and a few of the developers that can start buying now will realize major profits as they build and sell through the expansion of the neighborhoods like East Village and Columbia Districts.
“All along, what we’ve said is the thing we need most in the marketplace is stability in pricing,” Valone said, and that’s what he draws from the results of various price surveys.
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