Coronado Market Analysis
Coronado Market Analysis
"The Transition Period"
SOLD PRICE (PER SQUARE FOOT) : Q1 2008 VERSUS Q1 2009
| Q1 2008 |
Q1 2009 |
Change | |
| 92118 | $911.15 | $663.67 | -27% |
| Village Homes |
$857.36 | $719.67 | -16% |
| Village Condos |
$852.60 |
$615.04 | -28% |
| Shores | $1,069.52 | $1,156.48 | 8% |
| Cays Detached | $807.50 | $400.67 | -50% |
| Cays Condos |
$662.21 | $485.51 | -27% |
AVERAGE SALES PRICE: Q1 2008 VERSUS Q1 2009
| Q1 2008 |
Q1 2009 |
Change | |
| 92118 |
$1,430,109 | $1,193,800 | -17% |
| Village Homes |
$1,516,875 | $1,467,600 |
-3% |
| Village Condos |
$1,189,000 | $930,250 |
-22% |
| Shores | $1,567,500 | $1,246,333 |
-20% |
| Cays Detached |
$1,615,000 | $858,333 |
-47% |
| Cays Condos |
$1,112,500 | $753,000 |
-32% |
DEL BEACH VILLAGE: Q1 2008 VERSUS Q1 2009
| No Activity in Q1 2008 or Q1 2009 |
NUMBER OF SALES: Q1 2008 VERSUS Q1 2009
| Q1 2008 |
Q1 2009 |
Change |
|
| 92118 | 23 | 30 |
30% |
| Village Homes |
8 | 15 | 88% |
| Village Condos | 5 | 4 | -20% |
| Shores | 7 | 3 | -57% |
| Cays Detached | 1 | 3 | 200% |
| Cays Condos |
2 | 5 | 150% |
DAYS ON MARKET: Q1 2008 VERSUS Q1 2009
| Q1 2008 |
Q1 2009 |
Change | |
| 92118 | 111 | 152 |
37% |
| Village Homes |
89 | 155 | 74% |
| Village Condos |
164 | 205 | 25% |
| Shores | 122 | 82 | -33% |
| Cays Detached |
54 | 120 | 122% |
| Cays Condos |
53 | 162 | 206% |
BY THE BEACH: Homes/Condos from 10th St. to Ocean Blvd.
| Q1 2008 |
Q1 2009 |
Change | |
| Sold Listings |
1 |
3 |
200% |
| SP | $2,000,000 |
$1,872,000 |
-6% |
| SP/Sqft | $1,013.68 | $742.47 | -27% |
| DOM | 400 | 225 | -44% |
Your home is a high priced asset that warrants professional representation. We at Owen Properties have over a billion dollars in transaction experience and degrees from UCLA, UCLA Anderson School of Business (MBA), Berkeley and UCLA's School of Law (JD). We also have experience writing speeches for the President of the United States and conducting internet marketing campaigns for hundred million dollar companies. As marketers, attorneys, brokers and deal makers, we would be proud to assist you.
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Coronado Annual Report: 2008
"Statistics & Analysis"
Highlights
- Del Beach Village was the winner in 2008
- Buyers went bargain hunting in 2008
- Transaction volume in Coronado was down 39% in 2008 relative to 2007
- Inventory will be high in 2009
2008 Performance...and what lies ahead
As 2008 comes to an end (thankfully!), we thought you would appreciate seeing how Coronado real estate fared.
The Del’s Beach Village was the top performer in Coronado, and the areas near the beach held up well. Condos did okay, but the numbers are somewhat inflated by the four strong Beach Village sales (two of which Owen Properties handled!).
We read an article recently on retail sales, and an expert commented, “We are all bargain hunters now.” That is how it felt for Owen Properties in 2008. Generally, if a seller wanted buyer attention, the seller’s property had to appear to be a bargain. Once the property was perceived as a bargain, buyers would come along with interest and offers but would request an additional 10 to 20 percent off the bargain price so as to insulate themselves from further market drops.
Coronado sellers were reluctant to price themselves as bargains, and especially reluctant to give discounts thereafter. This difference in opinion amongst buyers and sellers led to a massive drop in transaction volume. Overall, Coronado volume was down 39% in 2008 relative to 2007.
So 2008 was a pricing tug-of-war between buyers and sellers. It has been our experience that tug-of-war doesn’t end with both sides dropping the rope and shaking hands. We are betting on buyers to win in 2009 because the current inventory level is high, there is unaccounted supply in the form of sellers who are waiting for the spring/summer to list, and the economy is still stumbling. The wild card is liquidity – if interest rates stay low and down payment requirements loosen for jumbo loans, the balance could begin to shift in favor of sellers. While we project a buyer victory in 2009, we believe it will be modest. Historically, Coronado prices have not declined much because Coronado sellers generally have the ability to wait out bad times, as the 2008 slow sale numbers show. This trend should continue in 2009, as it did for several years in the early 1990’s.
Our 2009 recommendations are as follows:
If you are a buyer in 2009, make sure you get a good price but do not insist on too much of a discount or you are likely to waste your time and miss out. Coronado sellers are not desperate and know their real estate is in short supply.
Also, enjoy your new Coronado home. Real estate isn’t just about making money. It is where you live and spend most of your time with your friends and family. The prices you get in 2009 should be lower, and perhaps the lowest you will ever get. Enjoy the leverage while you have it.
If you are a seller in 2009, ask yourself whether you are one of the lucky ones – a person who owns a property unique enough that buyers will pay a reasonable price, as opposed to a bargain price, even in hard times. That is what Beach Village owners had in 2008. They own one of only 35 properties, a very unique product, and commanded higher prices while the rest of the world of investments – oil, stock, real estate – fell. (View at www.DelVillage.com.)
If you are a 2009 seller and do not fit into the “very unique” category – for example, if you own a standard Coronado long, tall narrow home – you particularly need to price low to attract attention, and then be prepared to further discount to make the sale.
Or, you can wait until the market shifts. It will shift. The question is when. Here are the Coronado numbers for 2008 (through December 17) relative to 2007:
| 2007 | 2008 | Change | |
| 92118 | $896.25 | $878.75 | -2% |
| Village Homes | $899.17 | $813.02 | -10% |
| Village Condos | $862.30 | $927.32 | 8% |
| Shores | $1,108.07 | $1,158.43 |
5% |
| Cays Detached |
$586.01 | $547.33 | -7% |
| Cays Condos | $606.14 | $540.86 |
-11% |
Number of Sales: 2007 versus 2008
| 2007 | 2008 | Change | |
| 92118 |
270 | 164 | -39% |
| Village Homes |
137 | 76 | -45% |
| Village Condos |
45 | 28 | -38% |
| Shores |
49 | 38 | -22% |
| Cays Detached |
22 | 17 | -23% |
| Cays Condos |
17 | 5 | -71 |
| 2007 | 2008 |
Change | |
| 92118 | 102 |
102 |
0% |
| Village Homes | 79 |
82 |
4% |
| Village Condos |
98 | 105 | 7% |
| Shores | 119 | 66 | -45% |
| Cays Detached |
141 | 198 | 40% |
| Cays Condos | 119 | 85 | -29% |
| Listing | Purchase 2007 |
Resale 2008 | Change |
| Cottage 1 |
$4,452,000 | $5,500,000 |
24% |
| Villa 11 |
$2,415,000 | $2,600,000 | 8$ |
| Villa 21 |
$2,500,000 | $2,750,000 |
10% |
| Villa 22 |
$2,500,000 | $2,680,000 |
7% |
| Sold Listings |
SP |
SP/Sqft |
DOM | |
| 2007 | 25 | $2,867,449 |
$1,083.74 | 77 |
| 2008 | 13 | $3,094,692 | $1,090.33 | 103 |
| Change | -48% | 8% | 1% | 34% |
Your home is a high priced asset that warrants professional representation. We at Owen Properties have over a billion dollars in transaction experience and degrees from UCLA, UCLA Anderson School of Business (MBA), Berkeley and UCLA's School of Law (JD). We also have experience writing speeches for the President of the United States and conducting internet marketing campaigns for hundred million dollar companies. As marketers, attorneys, brokers and deal makers, we would be proud to assist you.
