Downtown Again

Hi People.


All of us know that Downtown San Diego has taken a beating as far as the sale of homes has gone. Very typical.

In the extra cool places (Downtown SD is one of THE coolest place) homes were flying off the shelves quicker than they could get built, up until late '05. That's when the slow down came fast in 92101 (Downtown zip. Are you new?).

The big problem was that developers were already half way done with their new condo project. No going back at that point. So, they had to finish the building and that left a ton of un-bought condos. This screwed up the prices, increased foreclosures & short sales (That & the general economy) and made all of the developers go bankrupt & bye-bye after they finished their projects.

Currently the Downtown area has 1400 units for sale. Approx 500 units are resale, 200 units are brand-spanking new & 700 are in a B St high rise named Vantage Pointe (Now has a NOD filed on them), according to the the San Diego Tribune.

That's a ton of condos for sale. The problem is, there's nothing being built to take their place. All of that inventory will be gone in a couple of years. The CCDC's (Centre City Development Corp., the Downtown planning commission) wants to double the population in 92101 within the next 20 years from 30,000 to 60,000. In order to do that the Downtown area is going to need some serious building.

One little problem, who's going to finance it? Banks are not digging the idea of giving construction loans (See any media source re our recession). The developers could swing smaller projects, but that doesn't fit the CCDC's plan. What will give?

The prices of downtown will go up. Straight supply & demand. Also, if the Charger stadium goes in down there, good night nurse.

Get with me for any info on the Downtown market, 619-507-7449.

God Bless.