As to the downtown market, I suggest you drive around downtown and notice how many unfinished condo buildings are still going up. If that soon to come on line supply doesn’t convince you that downtown has a long collapse ahead of it, I really don’t know what would.

XBoxBoy

As to the downtown market, I suggest you drive around downtown and notice how many unfinished condo buildings are still going up. If that soon to come on line supply doesn’t convince you that downtown has a long collapse ahead of it, I really don’t know what would.

XBoxBoy

T4Life –

I did an extensive search for a client who was pretty dead set on buying a downtown condo about 3 months ago. He had some really strong connections with alot of attorneys as he is one himself as his biggest concern was liability with regards to builders defects lawsuits in some of the more recent developments. Moreover with the financial stresses on some of the original developers his concern would be a liability that the HOA would have to assume if the original builder was insolvent.

That alone did not stop him from buying but it did make him quite wary. I believe we could very well see more substantial downward movement downtown. It is still the hallmark of the excess speculation that occurred. Per the previous post one sobering thing you can do is have your realtor bring you downtown and take a look at the closets that house the lockboxes. They are full and in some cases overflowing.

No doubt the HOA fees are outrageous and you should be quite wary of them. Of course foreclosures will add to the stress of the HOA and possible assessments could be levied if the budget needs to maintain a certain reserve level. Asking what drives the rates could be answered in a speculative manner. To be honest you would be better served looking at the HOA financials for an individual development that you would be interested in for your purchase.

At any rate I can see at least another 20% downtown with a possibility for more after it is all said and done. Just my guess for what it is worth.

T4Life –

I did an extensive search for a client who was pretty dead set on buying a downtown condo about 3 months ago. He had some really strong connections with alot of attorneys as he is one himself as his biggest concern was liability with regards to builders defects lawsuits in some of the more recent developments. Moreover with the financial stresses on some of the original developers his concern would be a liability that the HOA would have to assume if the original builder was insolvent.

That alone did not stop him from buying but it did make him quite wary. I believe we could very well see more substantial downward movement downtown. It is still the hallmark of the excess speculation that occurred. Per the previous post one sobering thing you can do is have your realtor bring you downtown and take a look at the closets that house the lockboxes. They are full and in some cases overflowing.

No doubt the HOA fees are outrageous and you should be quite wary of them. Of course foreclosures will add to the stress of the HOA and possible assessments could be levied if the budget needs to maintain a certain reserve level. Asking what drives the rates could be answered in a speculative manner. To be honest you would be better served looking at the HOA financials for an individual development that you would be interested in for your purchase.

At any rate I can see at least another 20% downtown with a possibility for more after it is all said and done. Just my guess for what it is worth.

T4Life –

I did an extensive search for a client who was pretty dead set on buying a downtown condo about 3 months ago. He had some really strong connections with alot of attorneys as he is one himself as his biggest concern was liability with regards to builders defects lawsuits in some of the more recent developments. Moreover with the financial stresses on some of the original developers his concern would be a liability that the HOA would have to assume if the original builder was insolvent.

That alone did not stop him from buying but it did make him quite wary. I believe we could very well see more substantial downward movement downtown. It is still the hallmark of the excess speculation that occurred. Per the previous post one sobering thing you can do is have your realtor bring you downtown and take a look at the closets that house the lockboxes. They are full and in some cases overflowing.

No doubt the HOA fees are outrageous and you should be quite wary of them. Of course foreclosures will add to the stress of the HOA and possible assessments could be levied if the budget needs to maintain a certain reserve level. Asking what drives the rates could be answered in a speculative manner. To be honest you would be better served looking at the HOA financials for an individual development that you would be interested in for your purchase.

At any rate I can see at least another 20% downtown with a possibility for more after it is all said and done. Just my guess for what it is worth.

I went through the archives on ‘condo downtown’ and found some gems from our friend, Rich Toscano:

Given the enormous amount of supply slated to come online over the next couple of years, downtown is absolutely a glut in the making and may be hardest hit when the bubble deflates in earnest.

Craneville Revisited

One real estate agent is quoted as saying that the boom attracted a lot of inexperienced people to the downtown building game: “In the heyday, a monkey could be a developer in downtown.”

Worst Shortage Ever: Downtown Edition

You read that right. 30 sales per month, with over 500 units for sale now and 11,000 in the pipeline. That, my friends, is what we call a “glut.”

Downtown San Diego’s Condo Onslaught

more links to Rich’s comments on downtown condos:

Cuckoo For Condo Gluts

Downtown and Underwater

Too Many Condos

~

IMO downtown condos will be the hardest hit market before this correction completes (I’m thinking out loud: even harder than Temecula / Murrietta? Hmm…)

I believe there is almost no true demand for high rise condos in downtown San Diego – the taxpayers were sold a bill of goods by the Center City Development Corp which funnelled taxpayer money to local developers to build infrastructure for high rise condos that the city doesn’t need and nobody is going to buy (at the projected prices)

The worst (best?) example of the lack of demand for downtown condos is the city taking over a high rise luxury condo project during construction and converting it to a subsidized housing facility for the needy

Downtown condos may become the cheap rentals in San Diego’s future (even though there’s no front yard to park the 5th vehicle in) – caveat emptor

I went through the archives on ‘condo downtown’ and found some gems from our friend, Rich Toscano:

Given the enormous amount of supply slated to come online over the next couple of years, downtown is absolutely a glut in the making and may be hardest hit when the bubble deflates in earnest.

Craneville Revisited

One real estate agent is quoted as saying that the boom attracted a lot of inexperienced people to the downtown building game: “In the heyday, a monkey could be a developer in downtown.”

Worst Shortage Ever: Downtown Edition

You read that right. 30 sales per month, with over 500 units for sale now and 11,000 in the pipeline. That, my friends, is what we call a “glut.”

Downtown San Diego’s Condo Onslaught

more links to Rich’s comments on downtown condos:

Cuckoo For Condo Gluts

Downtown and Underwater

Too Many Condos

~

IMO downtown condos will be the hardest hit market before this correction completes (I’m thinking out loud: even harder than Temecula / Murrietta? Hmm…)

I believe there is almost no true demand for high rise condos in downtown San Diego – the taxpayers were sold a bill of goods by the Center City Development Corp which funnelled taxpayer money to local developers to build infrastructure for high rise condos that the city doesn’t need and nobody is going to buy (at the projected prices)

The worst (best?) example of the lack of demand for downtown condos is the city taking over a high rise luxury condo project during construction and converting it to a subsidized housing facility for the needy

Downtown condos may become the cheap rentals in San Diego’s future (even though there’s no front yard to park the 5th vehicle in) – caveat emptor