|
Top 10 reasons to use Mark Mills 1. Knowledge of downtown housing market.
2. Personalized customer service.
3. Gaslamp District resident since 2000.
4. Focused only on downtown.
5. Shares condo ratings and reviews from his survey results of 5,500 downtown homeowners.
6. One of downtowns nicest and hardest working Realtors.
7. Partnered with great mortgage consultants.
8. Portion of each sale goes to cancer research (Susan G. Komen Breast Cancer Foundation).
9. A trusted source for information and opinions often quoted in local and national media, including The New York Times, PBS television, San Diego Home and Garden Magazine, Arizona Republic newspaper, VoiceofSanDiego.com, SignonSanDiego.com and Riviera Modern Luxury magazine..
10. His Brokerage (RE/MAX Real Estate Consultants) has the 3rd highest agent sales volume in the United States according to the National Association of Realtors, 2006.
Bonus for Buyers: My fee (commission) is paid for by the seller.
Top 10 reasons to move downtown 1. The enjoyment of a carefree lifestyle.
2. Walk to the harbor, shopping, restaurants, ballpark, theaters, and possibly work.
3. Availability of bay and ocean views.
4. Safety of 24 hour security and convenience of concierge services.
5. Availability of on-site guest suites to accommodate your guest(s).
6. Neighbors within the building, a boost to everyone’s social life.
7. Enjoy on site health clubs, pools, hot tubs, etc.
8. Entertainment rooms available to host your parties.
9. Watch and benefit (lifestyle and financially) from the ongoing renaissance of downtown from new public works projects, in progress until at least 2010.
10. It’s arguably the only neighborhood in San Diego that is changing for the better.
Resident Reviews Explained Client education is a large part of my customer service philosophy and the best way to understand what it is like in a particular condominium is to hear it straight from the residents living there. This philosophy led me to survey all the downtown homeowners asking them to rate their property in a broad range of categories and asked specifically what they liked the best and the least. The survey results you see published for each property are the averages of the resident ratings. In addition, the comments are a consolidation of their opinions. Residents are incentivized to respond to the survey for a chance to win several gift certificates to downtown retailers. The drawings are random and their survey ratings and or comments do not influence the drawing results.
Note that the surveys are only a snapshot in time (taken usually about a year after construction) and that some comments provided to me over time will change such as views, etc. In particular some negative comments provided to me may have resulted from problems that have since been fixed or remedied since the survey.
Surveys are not updated; they are usually only taken once. The number or respondents to the survey represents only a simple random sampling. It’s been my experience that only a small number of residents respond to the survey. Not enough to qualify as a statistically valid sample, yet still provides some insight from the residents living there.
This survey data and text is to be used only by my clients that have an exclusive listing or buyer’s agreement with me. If you are not my client you are not authorized to use the survey results.
These survey results are not to become part of any real estate contract and are not to be used to fulfill the buyers and sellers obligations with regard to disclosures.
Opinions of me and survey respondents protected by the First Amendment (freedom of speech).
Services Provided by Mark Mills Buyer Services:
Buying your home is a very exciting experience. Your initial contact with me will be an information sharing session where you will describe the home you desire. I will provide an overview of the neighborhoods and the properties available in them. After our initial discussion I will perform a detailed search for available homes meeting your criteria. You will then be invited to tour these homes. If you like one of these homes and want to purchase it I will assist you in the process. If you do not find a suitable home on the tour I will search daily for homes coming on the market that meet your criteria. Please call me to begin your home search and remember education is expensive but hesitation is more expensive.
Seller Services:
Selling your home can be a very challenging experience. My goal is to make this process as smooth as possible, while negotiating the highest possible selling price for your home. My services will include providing maximum exposure of your home to other agents and prospective buyers. A comparative market analysis (CMA) will be prepared to assist in determining the appropriate selling price of your home. Please call me to learn more about these services.
Downtown San Diego Condo Market is Ideal for Investors. Savvy condo investors are looking to Downtown San Diego to purchase investment properties to replace the disappearing apartment buildings that are being converted to condos. Today there is a relative abundance of entry level condos available due to several new buildings being sold as condos that were originally being constructed as apartments. According to Mark Mills, Realtor with RE/MAX Real Estate Consultants, in San Diego, you also have several existing apartment building that will soon evict all their tenants and sell their refurbished units as condos. This is really going to drive the rental prices up in downtown. If a building is not currently being converted to condos or in the planning stages, it is either below the quality standards required by downtown condo buyers or its location (usually in the East Village) is so bad the demand for that is still a few years out.
Wealthy California real estate investors have know for years that making money in California real estate is not about cash flow, its about appreciation. Stated another way, if you’re worried about cash flow, you bought the wrong property. Downtown’s housing market is very dynamic and the two influences of local politics and the cashing out of apartment building owners will make housing less affordable in the next 5 to 10 years. Local governments are subsidizing builders of low income apartment housing and no one is building anything for the middle or upper class to rent. Demand exists for luxury condo/apartment rentals in downtown. According to Mills, there is a segment of the market looking for condos rentals over $3,000 per month. Most of these renters are either new to town or in transition between homes they own.
If you’re looking for a rental condo in Downtown San Diego you will be in for a pleasant surprise over the next few years as you will get a bonus on your investment, increased cash flow. Rising rents are inevitable with the shrinking of the available rental units. Remember, the cash flow bonus will also make your investment property appreciate faster because it’s generating more cash.
New Condo Projects in Downtown San Diego – Up For Sale – Developers Bailing Out It may come as a surprise to many that the hot condo market in downtown San Diego has some developers cashing out prior to building their projects. Yes, so far The Elle, Triangle and a couple of other projects are now up for sale by the developers who have approval to build them but are choosing not to.
The Elle, a proposed 174 unit high rise in the Columbia neighborhood and Triangle, a proposed 57 unit project in East Village are up for sale. What’s actually for sale is the land and the approved plans for the projects. Asking price for The Elle is $17.5 million and The Triangle asking price is being kept confidential.
Why are these projects for sale? One speculation is that the raw materials costs are rising so fast developers no longer feel they can make a profit. Now that sales volume has slowed down and inventory is sitting for a much longer time period, developers don’t feel they can sell at premium prices to cover their costs. In the past year developers have been able to sell at premium prices to buyers that have not done their homework with regard to “market prices”. Now with the competing downtown San Diego condo inventory of almost 600 resale units, a lot of buyers are either shopping around or have become aware of what comparable resale units are selling for.
It’s not just the condo developers in downtown San Diego that are running into this problem. Its also hit in several other cities including the Las Vegas condo market. In the long run, this is a good problem if you already own a condo, with less supply coming on the market; it puts upward price pressure on existing inventory. This upward price pressure is what the market needs in order for future developments to one again begin, thus the real estate cycle continues.
Written March 2006
Pinnacle Condos San Diego ? Still commanding top dollar. Sales of the Pinnacle condos in downtown San Diego are still commanding some of the highest prices per square foot in the marina district. As of mid April 2006, 13 Pinnacle condos have been sold in downtown at an average price of $862 per square foot. That price per square foot is not a record for downtown and many condos have sold for more (per sq,ft.) but to have a building where even units on the 8th floor are selling for over $800/sq.ft is a first for the downtown condominium market (zip code 92101).
Currently there are 10 units for sale, not a very high percentage for a building with over 180 units. The Pinnacle has been the go to building for many long time downtown residents who always want to live at the top of downtown and have bragging rights that they are in the newest and tallest residential tower. Its too early to tell if the Pinnacle will surpass The Metropolitan condos, currently downtown?s highest rating condo building. The Metropolitan has something the Pinnacle never will, room service and maid service available from the on-site staff (of the Omni hotel). The Pinnacle has something the Metropolitan will never have and that is the prestigious ?marina? neighborhood address.
Average asking prices for available units at The Pinnacle are $1,041 per sq.ft. and range in price from $775,000 - $4,500,000. The Pinnacle residents will be surveyed this fall for their opinions on their building, including 1 ? 5 star ratings in over 13 categories. Resident reviews will be conducted by RE/MAX Realtor Mark Mills, a pioneer in the rating and reviews of downtown condo buildings.
Pinnacle condos
Million Dollar Homes Rise In Value There is a very good article about the million dollor plus home market in downtown in the September issue of the San Diego Metropolitan magazine. Here is a link to it.
Million Dollar Home Article
http://www.sandiegometro.com/2006/sep/property.php San Diego Condos still rising in price per square foot. Data for September 2006 shows downtown San Diego condos are still rising in price despite the drop in the number of units sold. The sold price per square foot for condos in September was $657, compared to only $625 September 2005, representing an annual appreciation of 5.1%.
The number of units sold for the above period shows a decrease of almost 60%, from 76 units sold in September 2005 to only 32 for September 2006. The firmness in pricing shows the strength of the downtown condo market. One reason for the strength in these numbers is that the smart money (the wealthy people) have the desire to live in downtown and are not influenced by the media reports of a pending market to crash. This is one reason the average selling price of a condo in downtown has risen to $866,000 from $732,000 over the last 12 months.
Looking at the data for the first nine months of 2006, compared to the first nine months of 2005, shows an increase of only 1.6% annual appreciation. The volume of units sold YTD is down 27%. The number of days to sell a condo has consistently been around 70 days from 2005 to 2006.
Realtors know there are buyers waiting on the sidelines watching the market trying to time it and jump in at the bottom. It’s hard to see the bottom when the prices are still moving upward. While the mainstream media has been warning of a housing bubble for years we have yet to see it even coming on the horizon. Looking at downtown’s most sought after neighborhood, the Marina District, the average availability level in each of the top 10 buildings averages only 7%. For example in a building with 100 units, only 7 are for sale. Remember that even in rapidly rising markets people still have to move (sell) and if this is a “buyers market” buyers better be jumping in now because if the real estate market heats up we will get back to the days where you have to make an offer the same day you look at a condo and you have to offer full price or more.
Downtown San Diego condos hold their values in 2006 Downtown San Diego condos hold their values in 2006 staying within one percent of 2005 prices. While the number of downtown San Diego condos sold dropped 32% their values remained firm. One reason for the drop in volume was the large number of buyers waiting on the sidelines for prices to fall before they jump in. While almost a self fulfilling prophecy for buyers, their wait may not have proven beneficial as the tax deduction for interest and property taxes are over 1.0% of the purchase price.
Once buyers realize that the downtown condo prices are not going to fall precipitously than a wave of buyers may start to flow into the market sharply decreasing inventory levels and putting upward pressure on prices. Inventory levels have already dropped from almost 800 resale units in 2005 to just over 500 at the beginning of 2007. Some buyers that want to sell their units but want higher profits are waiting for the wave of hesitant buyers and will meet their inventory demands.
One very important statistic to remember is that the average unit sold with in 6% of its asking price. While this is certainly a buyers market and there are deals to be found, sellers are not accepting low ball offers. While some sellers may set their asking price too high, most buyers are ignoring them and making acceptable offers on more reasonably price units.
The price breakdown of the 510 condos available at the beginning of 2007 is: Under $300,000 = 8 or 2%, $300K - $500K = 146 or 29%, $500K - $750K = 221 or 43%, $750K - $1.0M = 56 or 11%, $1.5M - $2.0M = 15 or 3%, $2.0M - $4.0M = 20 or 4%, and over $4.0M = 4 or 1%.
Park Laurel condos in San Diego jump 10% in price from 2005 to 2006 Park Laurel condos in the Bankers Hill neighborhood of downtown San Diego set a new record for highest priced unit sold in the complexes history with a penthouse sale at $3,950,000. In 2006, eight units were sold ranging in price from $1,400,000 to $3,950,000. Average price per square foot of the sold units was $629. Average market time for the units sold was 140 days. Compare this to 2005 figures of 20 units sold at an average price per square foot of $573 and only an average of 68 days on the market. This shows that the demand for Park Laurel is getting stronger and people are staying longer.
The strong demand for these units is propelled by the scarcity of the large size and high quality of the units in Park Laurel. Downtown San Diego condo buyers looking to trade up will often take a serious look at Park Laurel, with the smallest unit at over 2,600 sq.ft these units are very tempting.
As we move into 2007, there are eleven units available in Park Laurel ranging in price from $1.5 to $4.0 million. Buyers looking for very large units will love the values available in the town home style units that range from about 3,000 - 4,000 sq.ft and are value priced at under $600 per sq.ft.
The Park Laurel condos offer not only very high quality large interior spaces but have a lot of services catering to the residents. These include a 24 hour concierge, pool, fitness center, large lobby and library area and of course its right across the street from Americans largest urban park, Balboa Park.
Park Laurel condos
Annual Turnover and Prior Year Price Change formulas explained. Choosing the right building for you is so important I try to provide as much information as I can to assist my clients in making that decision. After breaking new ground by providing reviews from the residents living in these buildings, in 2007 I added some useful statistics, “annual turnover” and “price change prior year”. I want to share with you how these are calculated.
Annual turnover; is the number of units sold in the last calendar year divided by the number of units in the complex. All sold data is pulled (only) from the MLS.
Price change prior year; is calculated by comparing the complexes average sold price per square foot in the last two calendar years. I believe this is the most accurate way to compare the time periods as opposed to the median price number always quoted in the mainstream media. Again all of the data I used came from sales reported through the MLS. Data can be skewed sometimes, if for example, in one year most of the sales were on penthouse floors with great views and the next year the only sales were very low floors with no views.
Hurray the hotels are coming Downtown condo conversions are still “in” and this bodes well for future property values. Gone are the days of converting apartments to condos, now the current trend is (pre-construction) condos to hotels. The drivers behind this trend are the soft condo market, the tight high end hotel market and the constantly growing attractiveness of downtown San Diego to convention attendees and tourist alike.
If you ever tried to book a hotel in downtown for a visiting friend you know how difficult and expensive it can be. Finally, the market place is coming to the rescue with over a dozen hotels planned or currently under construction which will add over 6,000 hotel rooms. Some of these hotels will be built where condos were once planned, often keeping the same exterior architectural design. This is great news for downtown because of the plethora of dining dollars and vacation shopping will continue to have a positive influence the restaurant and retail establishments that come to downtown and only the best of the existing establishments will be able to survive in a market with increasing retail lease rates.
Electra condos - Downtown San Diego's Tallest Residential Tower In January 2008, downtown San Diego will have a new building claiming the status of being the tallest residential tower in downtown, called The Electra. The Electra condos will be 43 stories high with 248 condos. One of The Electra condos most distinguishing features aside from its height will be its 60 foot atrium styles "social lounge"/lobby, a first for San Diego. Other amenities include: business center, private meeting room, gym, 24-hour concierge pool, spa, sauna, steam room barbeque, 5th floor roof deck outdoor fireplace lounge & garden.
The Electra condos got their name from the site they are built on which used to be a San Diego Gas and Electric (SDG&E) power plant facility dating back to 1911. All of the units offered by the developer for sale in 2005 were sold out with in a week's time. Demand has been and continues to be very strong for the high quality view condos downtown. Prices ranged from $500,000 to $2,500,000 when sold by the developer, with floor plans ranging from approximately 700 - 1,800 square feet. There are six units per floor up to about the 30th floor, than only five up to the 40th floor and then the top three floors only have three units per floor.
Electra is located in downtown "Columbia" neighborhood at the intersection of Broadway and Kettner Boulevard. Its easy to pick this building out on the skyline because of its height and also from up close you will notice the original façade of the SDG&E building was preserved and its original windows are now the windows of the lower floor condos, often two story town home floor plans.
The is a great building for people seeking the highest quality of finishes, because this building really does raise bar and set a new standard by which all others will be measured. Not to be overlooked are the magnificent city and bay views available from these condos, expect the premium view units to have a market value almost twice that of their similar sized floor plans and the lowest floors with out the special and panoramic views.
Downtown San Diego condo inventory at its highest level ever. Downtown San Diego condo inventory at its highest level ever. As of December 2007, there are 900 new and resale condos available, up from about 700 units two years ago. The main reason for the increase is the number of unsold units in newly completed buildings, accounting for almost 400 of the 900 downtown condos. The volume of downtown San Diego resale inventory has been consistent over the past two years at about 500 units. In 2008, we will see the completion of three new condo buildings (Aria, Breeza and Sapphire tower) and in 2009 only two new buildings (Bayside and Vantage Pointe) will be completed.
Inventory levels in the highly rated and most expensive buildings downtown averages about 7% while the lower rated and lower priced buildings current inventory levels are averaging about 10%. The higher inventory levels in the lower priced buildings is driven by financing, rising ARMs leading to foreclosures and the difficulty first time buyers are having getting mortgages at those price points.
Dividing the available inventory into price ranges shows 300 units under $500K, 400 between $500K and a $1.0M and 200 units priced over $1.0M. Comparing these numbers to this year's sales volume concludes it will take nine months to sell the inventory priced under $500K, ten months for the $500K to $1.0M inventory and eleven months for the inventory priced over $1.0M to sell. A very interesting point to make is that on the high end ($1.0M+)the resale inventory is only about one third of the total inventory of high end units. This is due to new construction and with the number of new condos being built dropping dramatically, the condo buyer has not and will not have this many units to choose from ever again. Sure there will be more real estate boom cycles, but the prime land in downtown San Diego is already built upon. If you want to know where prices for these high end condos is heading, think back to Economics 101, supply (virtually coming to and end) and demand.
Downtown San Diego Condo Prices Holding Firm Downtown San Diego condos priced at over $1 Million held on to their value steadily throughout 2007 showing no depreciation or appreciation. This is great news for owners of those highly desired properties but bad news for those looking for a deal on the best that downtown has to offer. Bargain hunters can find plenty of bottom feeding available at the low end of the quality and price points. Condos under $400,000 are extremely difficult to sale and that is the area discount shoppers will find the foreclosures and short sales.
Last years results are in, prices on average downtown dropped 7.5% in 2007 from 2006. Specifically I am referring to sold price per square foot, $547 vs. $592. The condos priced under a million dollars were responsible for this decrease as the condos above a million dollars held steady at $1,048/sf. Only three buildings saw an increase in their sales prices: Cityfront Terrace (as a result of reaching a settlement on their litigation), Harbor Club (people still demand premium bay views) and the Watermark (as a result of their recent common area remodel). What we are seeing in our market is quality buildings in prime locations selling well, while entry level condos in the less desirable areas are extremely difficult to sell and often are being given back to the banks. Downtown’s high end is holding well as those buyers are not as sensitive to the recent credit tightening and are better able to handle any ARM resets they may be facing.
Currently there are 900 new and resale condos available, up from about 700 units two years ago. The main reason for the increase is the number of unsold units in newly completed buildings. The volume of resale inventory has been consistent over the past two years at about 500 units. In 2008, we will see the completion of three new condo buildings (Aria, Breeza and Sapphire tower) and in 2009 only two new buildings (Bayside and Vantage Pointe) will be completed. If you’re looking to trade up or buy one of the better condos downtown, it’s never been a better time to “buy low”.
Downtown San Diego Condos Jump in Price YTD 2008 Downtown San Diego is a great place to live and buyers continue to push prices higher in 2008. Over the first two months of 2008, the average sold price per square foot has jumped 2% over the same period in 2007. If the market forces continue at that pace prices will be up 12% over 2007.
This factual data may come as a shock to anyone reading a mainstream newspaper real estate story because they talk in very broad terms. Sure San Diego has its problem neighborhoods with condos dropping dramatically in price, which can influence county wide data. But when you focus in on the constantly improving downtown market, demand continues to be strong and is pushing prices back up.
Yes you can find condos in downtown that are off their peak prices by 20%, but they are units that were bought, and probably will not be bought again, until inventory gets so tight it looks more attractive. This price increase of 2% was realized even when the volume of sales were down 22% compared to 2007. Why would prices be rising when volume is dropping. Well there is one component of buyers not reported in the MLS. That is buyers buying new construction. There are four condos in downtown now that are completed yet not sold out, buyers are often choosing these buildings, which are more expensive on average, so it appears volume is off more than it really is. If these new condos sales were added the price jump would be even higher, because these buildings are on the upper price range.
Two of downtown most desirable neighborhood locations, the Historic Gaslamp District and the Marina District, are completely built out with the exception of one remaining buildable lot in the Marina District. Basic economics tells us this will only cause prices to rise as demand continues to grow over time. One example of a driving force to push demand higher is the all the hotel rooms soon to be built in downtown. Look at any city that is building hotels and you will often find a red hot local residential real estate market. The Gaslamp District just experienced the opening of the Hard Rock Condo Hotel and soon will see four (4) new Marriott hotels built, two in the Gaslamp and two a few blocks over in the East Village.
If you're thinking about buying a condo in the downtown San Diego market, take advantage of the large inventory supply (550 resale condos) and slower appreciation rate that will allow you to hop on the train everyone is having so much fun on.
|
