Welcome to San Diego Blog | July 25, 2012
San Diego Marina District Condos
A conversation this week with a client demonstrates just how fast the real estate market for Downtown San Diego condos can change. We had been watching a number of Marina District condos for the past 6 months.
Downtown San Diego’s Marina District includes some of the city’s premier luxury highrise and midrise condos. It is an established neighborhood, with mature trees, adjacent to grassy parks, upscale hotels and the San Diego Waterfront.
The convenience of Ralph’s Grocery Store at 1st and Market and Horton Plaza one block further north add to the convenience living in the Marina District.
The condo we’re looking for is over 1,500 sf, higher than the 10th floor, with floor to ceiling windows oriented for natural light and priced under $1 mil.
We had focused our search in three buildings:
Pinnacle Marina Tower–Located at 550 Front Street, a 35 story modern tower, opened in 2005. 2 BR condos range from 1,297 sf to just under 2,000 sf., 3 BR to 3,000 sf. Prices from $600-3.5 mil.
Horizons by Bosa Development–Located at 510 First Ave. and 555 Front Street, 2-25 story towers, opened in 2002. 2 BR condos range from 1,215 sf to 1,393 sf. 3 BR penthouses to 2,400 sf. Prices from $600,000-$1.9 mil.
Renaissance–Located at 645 Front Street, 2-23 story towers, opened in 2002. 2 BR condos range from 1,293 sf to 2,005 sf. Prices from $595-1.275 mil.
Marina District Condo Sales
For the past year, the Welcome to San Diego Real Estate team has been using “Market Absorption Rates” to demonstrate segments of the market where buyers (and sellers) are most likely to identify opportunities.
As recently as the May Market Absorption report in the hyperlink above, condos priced over $800,000 were still seen as opportunities for buyers. A “buyer’s market” by definition has more than a 6 month supply of homes on the market.
A snapshot of recent activity at Pinnacle
60 days ago there were 13 “Active” listings at Pinnacle. There had been 3 closings in the previous 60 days (an average absorption of 1 1/2 per month). Therefore, thirteen listings represented nearly a 9 month supply. Clearly, a positive scenario for buyers.
Today, the scenario is quite different, as the following table illustrates:
|Condo #||Est SF||List Price||Mos. On Mkt||Sold Price|
In the past 60 days there have been 7 sales at Pinnacle. The 2 “Pending” transactions have taken place within the past 2 weeks. With only 4 active listings (and 1 of these a long-term listing that the market has excluded as overpriced), our current supply in Pinnacle is approximately 15 days.
I’ve jokingly said, “they won’t hang a flashing neon sign saying ‘we’ve reached the bottom of the market.'” But based on these sales at Pinnacle and a number of other sales over $1 mil in the past several weeks, the market in this price range has clearly turned.
In fact, the Welcome to San Diego Real Estate team has represented a number of buyers and sellers over $1 million over the past month. Earlier in the year, it seemed as though the market was focused under $500,000. Wow! What a change in a few months.
Let’s start a conversation about San Diego Real Estate.
Contact David Manes, Realtor at email@example.com or call 858.432.3203.