Welcome to San Diego Blog | June 26, 2011

Downtown San Diego Foreclosures

Where are all the foreclosure properties Downtown San Diego?

With only 2o foreclosure condos for sale on the San Diego regional multiple listing service, it’s a wonder where all of the downtown San Diego foreclosures have gone.  Will there be foreclosure Condos to come?  Let’s look at what the  foreclosure condo market has done in Downtown San Diego 92101 zip code so far this year.

Date # of Condos
Foreclosure Condos for Sale June 26th          20
Foreclosure Condos Sold January 1 – June 26          88

Given that an average of 14.6 downtown San Diego foreclosures have sold per month so far this year, it leaves only about a 1.4 months supply of foreclosure condos on the market.  Of the 88 condos sold:

  • 85% sold for under $400,000
  • 63% sold for under $300,000
  • 27% sold for under $200,000

With only a 1.4 months supply of foreclosures downtown San Diego left on the market for sale, what is to come?  We expect a modest amount of foreclosure condos to continue to come on the market, but don’t look for the double dip in San Diego.  A concentration of the condos that make up the 88 are located at projects like:

  • Element – Not a popular location
  • Hardrock Hotel – Condo-Hotel sold at peak and no financing available
  • Smart Corner – Good idea for NY or Boston, but didn’t work so well in SD
  • Union Square – Outer edge of East Village, but a nice community
  • Atria – Apartment to Condo Conversion – in a really good location though!

Notice of Defaults are at a 3.5 year low in San Diego and we have a large number of investors buying condos with cash on the courthouse steps.  These investors generally do a light rehab including paint, floors and staging and sell the properties quickly for a profit (flipping as we call it in the Real Estate Business).

What do the Economists say about San diego Foreclosures?

Not going to buy into it from a Real Estate Expert?  See what San Diego’s Economists have to say; the Union Tribune recently posted local economists opinions on the the foreclosure topic and this is what they had to say:

Alan Gin, with the University of San Diego is not surprised that foreclosures are not out of control in San Diego right now.  He attributes are stabilization to positive job growth in the local economy so far this year and people going though the steps to short sell their Downtown San Diego Condos.

Gary London of the London Group says that the peak was in 2008 for San Diego foreclosures and we should see the number of foreclosures retreating.   The market is clearing, but still expect a large number of sales to be foreclosure or short sales.

Lynn Reaser, Point Loma Nazarene University says that San Diego’s economic diversity is helping it to recover with job gains exceeding those in the rest of the state and nation.  10,500 jobs have been added so far in 2011, representing an annualized growth of 2 percent.

For help finding a great foreclosure or short sale property, Give us a call: 619-309-8011

Written by: chad

Categories: Buyers, Downtown San Diego, East Village Real Estate, Real Estate Investment, Relocation, San Diego Real Estate

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