MARKET UPDATE
We had a great week with our current escrows, opening a new one, moving others forward and working with active buyers and upcoming listings.
The market continues to chug along steadily. Interest rates have been dropping, and buyers are cautiously searching and making offers. Here’s today’s snapshot of activity from Point Loma to Solana Beach:
- 32 new listings today
- 33 listings went into escrow today
- 24 closed sales today ranging from $435,000 to $17.85 million
- Average days on market for sold and pending sales: 46 days
This is a well-balanced market. Prices aren’t skyrocketing, but the bottom isn’t falling out either. Remember, a lot of national headlines don’t reflect what’s happening locally. For example, Florida, Texas, and Arizona are experiencing very different markets. Real estate is local. In University City (92122), there have been only 8 homes listed in the past 30 days.
WHEN TO BE WARY OF BUYING A CONDO
We talk a lot about digging, searching, and finding good deals for clients. But we also know when to avoid deals altogether.
One issue we’re seeing in larger condo developments is that many are WAY underfunded and underinsured. Buyers, and even many agents, don’t always know what to look for, or more importantly, avoid. Some of the bigger garden-style condo complexes built in the 1970s–1990s are spread over acres with dozens of buildings are expensive to maintain and insure.
On top of that, California has a new law going into effect on January 1, 2026 regarding balconies and elevated structures. Many buildings will need inspections, clearance, and improvements to comply. Some developments won’t have the money to cover this and will need large special assessments or loans to recapitalize. This is a bigger issue in sprawling complexes than in small- to mid-sized ones or high-rises.
Lenders are already digging into these details, and some developments are not able to be financed or close to it. Once that happens, values drop and only cash buyers can step in. Of course, cash buyers will expect, and deserve, a steep discount until the problems are resolved.
Our solution: know which developments are at risk, ask the tough questions early, and walk away at the first sign of red flags. Unless you’re getting a screaming deal that justifies the risk, it’s not worth it—especially if you’re financing. The good news is there are still plenty of condo communities without these problems.
A Tip From Tracie
INSURANCE - YOU NEED IT WHEN YOU NEED IT.
And you need a great rep on your side. Case in point:
- I was in a car accident on the 5 freeway exit at Balboa into PB. I was stopped…doing what I was supposed to be doing as a responsible driver. Two hands on the wheel, no cell phone, paying attention….. you get it. The screeching tire sound was the truck two vehicles back. The car in between us got smooshed. Anyway, Farmers Insurance was amazing to work with. Detailed, attentive and fast. I couldn’t be happier. If you need a referral to our amazing rep, we can send you Pete Williams info. He’s truly the best. #PeteWilliams.
- This one is a crazy story. Kaylee’s mom and step dad woke to their neighbor’s house burnt down 2 weeks ago. A driver saw smoke at 4:00 am, stopped to knock on the door and woke the residents. Fortunately (FORTUNATELY!!!) no one was hurt. My first thought…did they have enough coverage to rebuild and take care of everything in their home. Do they have a good company…
Lesson of these stories. Have a great insurance company. Have the appropriate amount of coverage. Have a rep who will help you through a claim. Don't let it be one of those things you will get to tomorrow.
