Welcome to San Diego Blog | April 16, 2011

Downtown San Diego Condo Foreclosures

Downtown San Diego Condo Short Sales

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.

These have sold at the lowest prices ever seen in these buildings.  Recent sold/closed foreclosures (F) and short sales (S) in Downtown Condos over the past 30 days have included:

30 Days of Short Sale & Foreclosure History Downtown San Diego Condos

Location Sale Price    Close Dt Previous Price Previous Close F/S Cash/Loan
Grande #202 400,000 4/6/2011 728,000 3/16/2007 F Cash
Grande #505 397,900 4/1/2011 889,000 9/11/2006 F Cash
Electra #3104 480,000 3/30/2011 756,000 2/22/2008 F Cash
Cityfront #201 435,000 4/4/2011 675,000 6/27/2007 F Cash
Legend #1504 560,000 3/25/2011 957,000 9/27/2007 S Cash
Legend #2004 800,000 4/7/2011 1,574,000 10/10/2007 S Loan
Doma #204 330,000 3/29/2011 682,500 5/10/2005 S Loan

OK, so what’s significant in this table?

Lots of activity. This is completely current, nothing older than 17 days.  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 San Diego 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.

What has Dannecker and Associates accomplished in the month of April?

Our escrows in the past 16 days include:

  • 9th Floor, 2 BR/2BA, at La Vita, Foreclosure
  • 14th Floor, 2 BR/2 BA at Treo, Short Sale
  • 5th Floor, 2 BR/2 BA at Acqua Vista, Foreclosure
  • 2nd Floor Cityfront Terrace Soap Factory Loft, Foreclosure

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.  And 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?  Call us.  Let’s have a conversation about San Diego Real Estate.  We are finding great properties for our clients.  Be prepared now.  Don’t miss out!

Written by: Dannecker & Associates

Categories: Buyers, Downtown San Diego, East Village Real Estate, Little Italy Real Estate, Luxury San Diego Condos, Marina District Real Estate, Real Estate Investment, Relocation, San Diego Real Estate

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