Monday, February 12, 2007

Rate of Condominium Conversions, Sales Continue Downward Spiral

The San Diego Business Journal reports on condominium conversions in San Diego. No major surprises here and I agree completely with the forecast for more problems.

San Diego Business Journal Online article

9 comments:

Mark in San Diego said...

This spring should be interesting when thousands of downtown condos are "delivered" to buyers who put down 15% two years ago. . .hope they aren't trying to get a "sub-prime" loan, or 100% financing. . .the loan window is closed at Countrywide.

Dr Housing Bubble said...

Hard to believe that many of these places are finally coming online at the worst possible time. Not only that, but lending standards are tightening and the market for these conversions, otherwise known as glorified apartments, will need loose lending standards. HSBC last week announced its scaling back of subprime mortgages and the current market demand for these loans is decreasing at a fast pace.

The fun is starting in 2007.

Dr. Housing Bubble

Mark in San Diego said...

By the way - the "fun" has already started at Discovery see link:

http://www.sandiegodowntown.info/current.html

Scroll up to Discovery. . .a 2 bedroom 2 bath for $449K. . .nice well built building, but lots of bank owned - I believe 5 currently, and one more to hit soon. With El Cortez mess across the street, and Cortez Blue selling at fire-sale prices, looks like this is the current center of the meltdown. . .Ballpark is next with Icon, Mark, Park Terrace, etc. all hitting the market.

Anonymous said...

Hmmm, interesting. I consider Cortez Hill to be more desirable than most of downtown (no railroad noise) and it would definitely be my first choice. Ballpark is overrated and basically still a total dump.

Mark in San Diego said...

Agree - Cortez Hill is nice and quiet, but no stores, etc. I looked at a place at Discovery, and would still consider. . .the small grocery store in El Cortez is full of snack food - someone is missing a business opportunity for a decent small market - the "natural" store on 6th is kind of slim pickings too. . .cerial at twice the price of Ralphs!

Mr. Brightside said...

Cortez Hill missed a huge opportunity to improve itself when Aria and Aloft were built they were both going to have retail and then it was removed from the plan. Also Aria replaced the "Spice House" which was a classic neighborhood restaurant so net net there is actually less retail on Cortez today than there was five years ago.

Mark in San Diego said...

Park Terrace - just opened for occupancy a month ago already has 6 re-sale listings on the MLS. . .I walked past and also saw 3 for rent signs. . .no one has really occuppied a unit yet that I know of. . .walk past and look for plants or signs of life. . .this is just what I have been saying, as condos are "delivered" we will see hundreds of new listings this summer at Icon, Mark, Smart Corners, etc.

Mark in San Diego said...

Park Terrace update - I DID see two units yesterday (Feb 14) that looked occuppied, but while I was there, a real estate agent was placing a Re-Max sign on yet another front facing unit - hasn't reached the MLS yet. . .

Mr. Brightside said...

mark,

I'm not noticing any of the ICON or Park Terrace resales selling, I imagine that some people are trying to both rent and sell them at the same time.