There’s a 7-unit residential project that was built on an infil lot here in Carlsbad 92008. The homes are 3,500+ SqFt on 10,000 SqFt lots, a couple of which have peek views to the ocean, 1.5 miles to the west.
When they were first listed 18 months ago, the pricing went from $1.4mil to $1.6mil. A bit high, but not crazy high when considering the location. No takers. They had an agent onsite, open houses, etc, and apparently not one of them generated an offer. The builder reduced the pricing. Most recently they were listed at $1.2mil, still no offers. The most recent MLS listing expired at the beginning of the month.
I just drove by there this morning and saw a “for rent” sign out in front. I take that to mean that the builder can’t sell for less than the $1.2mil and is thinking they can outwait the market. I’m guessing these homes will continue to sit vacant until the construction lender takes them back and sells them for however much the market will actually bear at that time. I reckon that price will be below $1.0mil.
Across the street there is a new 7-unit medical office condo project that was just completed a couple months back. They’re quite nice. The developer started out asking $530/SqFt a year ago. The last time I looked they were $430/SqFt. Still no takers. I’m guessing they’ll have to come down another $100 before they scavenge buyers away from the Palomar Airport area, which is also struggling at this time.
Both of these 25% examples show that the pain train is marching down the coast and it will eventually reach the areas closer to employment in SD County. It’s all connected, which means it’s all just a matter of time.
