San Diego BUSINESS |
 San Diego HOME SALES San Diego County and Southern California home sales climbed above year-ago levels for the seventh consecutive month in January as bargain-hungry buyers flocked to inland areas pounded by foreclosures and deep discounts, reports MDA DataQuick in La Jolla. Increased affordability in some of those neighborhoods spurred record ornear-record resale activity, while many pricier coastal towns again posted some of their slowest sales in two decades.
January home sales in the county jumped by 34.7 percent from a year ago and the median home price fell by the same percentage. A total of 2,459 homes were sold during the month compared to 1,826 for the same month of 2008. The median home price in the county in January was $280,000, a 34.7 percent drop from the year-ago figure of $429,000. DataQuick says foreclosures continued to play a leading role in the market, accounting for nearly 60 percent of all homes that resold in the Southern California region. Sales of newly built homes were the lowest for a January in at least 21 years -- partially a reflection of how difficult it is for builders to compete with discounted foreclosures in the inland growth areas. A total of 15,227 new and resale houses and condos closed escrow in the six-county Southland last month. That was down 23.6 percent from 19,926 in December but up 52.5 percent from 9,983 in January 2008. A decline of 20 to 30 percent between December and January is normal. Last month’s sales were the highest for that month since January 2006, when 21,895 sold, and were 16 percent below the average January sales total since 1988, when DataQuick's statistics begin. Sales of existing single-family houses reached record levels for a January in inland communities such as Chula Vista and Lemon Grove in San Diego County; Fontana and Victorville in San Bernardino County; Perris and Temecula in Riverside County; Palmdale in Los Angeles County; and Oxnard in Ventura County. Such areas have seen prices drop, and therefore affordability rise, more than most Southland communities. Coastal towns that logged record-low or below-average January sales of existing houses included Bel Air, Beverly Hills and Santa Monica in Los Angeles County; Newport Beach and Laguna Beach in Orange County; and Del Mar and Encinitas in San Diego County. Such areas have so far seen relatively small price declines and haven’t benefited from the wave of bargain hunting that boosted inland sales for months. "We’ve heard a lot of talk, regarding the decline in home values, about how ‘no one wants to catch a falling knife.’ But for months we’ve seen quite a flurry of sales activity in many inland areas where prices have fallen more in line with local incomes," says John Walsh, DataQuick president. "We can only assume that many first-time buyers, investors and others buying in these areas have concluded it’s not worth trying to time the price bottom perfectly. They’re happy to lock in substantial discounts relative to the peak. Whether the inland sales pace holds will hinge on factors such as the health of the job market, the availability and cost of financing, and the new efforts to stem foreclosures and halt price depreciation -- efforts that could eventually tame inland bargain hunting." The median price paid for all homes combined last month was $250,000, down 10.1 percent from $278,000 in December and down a record 39.8 percent from $415,000 in January 2008. Last month’s median was the lowest since it was $242,000 in February 2002. January’s median was 50.5 percent below the peak $505,000 median reached in the spring and summer of 2007. The median sale price -- the point where half of the homes sold for more and half for less -- has eroded consistently for 19 months. Its steep decline stems not only from falling home values but from changes in the types of homes selling. Increasingly, sales over the past year have involved foreclosure properties, and a growing share has been in the lower-cost inland areas. At the same time, sales in pricier coastal towns have remained sluggish, in part because of problems associated with the cost and availability of financing for high-end real estate. So-called jumbo financing, formerly defined as mortgages over $417,000, represented about 40 percent of all purchase loans before the August 2007 credit crunch. Last month just 9.2 percent of Southland purchase loans were for more than $417,000. Conversely, a popular form of financing for first-time buyers, government-insured FHA mortgages, rose to a record 40.4 percent of January home purchase loans. Last month’s foreclosure resales -- homes resold in January that had been foreclosed on in the prior 12 months -- represented 58.3 percent of all resales, up from 56.2 percent in December and 28.6 percent a year ago. At the county level, foreclosure resales ranged from 46.0 percent of January resales in Orange County to 71.2 percent in Riverside County. In Los Angeles foreclosure resales were 51.9 percent of resales; in San Diego 55 percent; San Bernardino 67.3 percent and in Ventura County 49.1 percent. DOWNTOWN San Diego Two senior members of the CCDC staff -- Barbara Kaiser, v.p. of real estate operations, and Phil Bona, assistant v.p. of architecture and planning -- were released Wednesday as part of an austerity move by the nonprofit organization responsible for Downtown redevelopment. The action was taken by CCDC Chairman Fred Maas. "Several months ago, our board froze bonuses and salaries for this fiscal year, and yesterday, again recommended no salary increases and an elimination of incentive bonuses for fiscal year 2010," said Maas. "The board also recommended that next fiscal year’s budget, currently being developed, reduce the salary range of the vacant president’s position from $191,000 to $255,000 to $175,000 to $225,000. The search process has not commenced." Added Maas: "Austere times warrant austerity measures and while these are extremely difficult decisions, the CCDC board and staff remain committed to serving the community, fulfilling our redevelopment mission and operating prudently and efficiently in these challenging economic times." San Diego REAL ESTATE BUSINESS More than 220 families have settled into Bosa Development’s Electra in Downtown San Diego and are now calling the landmark tower adjacent to San Diego’s waterfront home. "This milestone demonstrates the desire that exists for sophisticated yet comfortable urban living," says Nat Bosa, Bosa Development CEO and president. "The 200-plus homeowners here have discovered the incomparable level of detail and amenities that are a trademark of every Bosa project. From the standard catering-level kitchens to the four-star social lounge, no facet was overlooked to create a home that is heads above the others." It is not uncommon to see neighbors meeting at the fireplace lounge for a glass of wine or throwing impromptu gatherings in the conservatory, says Sharon Tentilucci, Electra sales agent. When the weather is nice, there is always a lot of mingling going on at the pool and around the outdoor fireplace. "Residents are definitely taking advantage of the building’s amenities and a very strong sense of community has been established," she says. The 43-story Electra tower comprises 248 exquisite residences above three floors of underground parking and offers views of the San Diego skyline. Two-bedroom units, two townhomes and two penthouses, starting at $2.175 million, are available. The two-bedroom units start at $549,000, while the townhomes start at $679,000. *** Voit Development Co. reports an increase in sales at its Hillside Professional Center, a 41,500 square-foot, 30 unit, Class A office project in Mission Valley. "This increase in sales at Hillside is in response to the pricing matching the current market rates in the region," says James V. Camp, senior v.p. of development/acquisitions for Voit. "In addition, Hillside Professional Center is the only office project in the area providing small business owners with the opportunity to own high-quality office space in the heart of San Diego, with competitive rates of $190 per-square-foot for a shell unit and $225 per-square-foot for a fully improved unit." The units at Hillside Professional Center range in size from 959 square feet to 2,002 square feet with the ability to combine units up to as large as a 13,931 square-foot unit. The project is located at 2221 Camino Del Rio South. Camp and Chris Cussen of Voit are the project managers for Hillside Professional Center. Jon Boland, Ryan Bracker and Jon Hamby of Voit Commercial Brokerage’s San Diego office are the marketing representatives. THE AMAZINGLY GREEN NAVY REGION SOUTHWEST Here is your chance to join with San Diego Metropolitan magazine’s March 2009 COVER STORY celebrating the U.S. Navy and U.S. Marine Corps extraordinary commitment to green and sustainable development. San Diego EDUCATION Education Secretary Arne Duncan will be the keynote speaker for the National School Boards Association’s 2009 annual conference April 4-7 at the San Diego Convention Center. Duncan will address nearly 9,000 conference attendees during a general session on April 4. Prior to his appointment, Duncan served as the CEO of the Chicago Public Schools, a position to which he was appointed by Mayor Richard M. Daley, from June 2001 through December 2008, becoming one of the longest-serving big-city education superintendents in the country. Award-winning author Toni Morrison, actress Julie Andrews and best-selling author Greg Mortenson also will address conference attendees. The annual conference Website is http://www.nsba.org/conference. *** Leading Strategically: Critical Skills for Effective Leadership During Challenging Times," a new SDSU certificate program led by Jeff Campbell, former CEO of Burger King, has been designed to help managers, leaders and organizations identify and develop the practical tools required to navigate through the haze of the recession. "In today’s economic climate, many businesses are looking for the proverbial light at the end of the tunnel," says Campbell. "Finding the light can be easier with first-class leadership ... and it doesn’t all have to be at the very top of the organization." The certificate program takes place every other Friday, March 6-May 1, from 7:30 to 11:30 a.m. at the SDSU Extended Studies/Gateways Centers. Created by instructors who have led major business and military operations, the program uses practical experiences that can translate into immediate implementation. SDSU’s College of Extended Studies is making the program more affordable by offering the program at a one-time rate of $249. The program is targeted to individuals with a minimum of five years’ business experience and focuses on sharpening critical thinking skills, refining personal leadership skills and practices; leading through change; and applying this knowledge to today’s uncertain and changing economic world. Also leading sessions are Holly Green, CEO of The Human Factor and former president of The Ken Blanchard Companies; Lt. Col. Kent Rideout, head of the Army ROTC at SDSU and decorated Iraq war veteran; David Bennett, CSU San Marcos, College of Business Administration and former CEO of Mail Boxes Etc.; and George Reed, associate professor of leadership and education sciences at USD. Seating is limited, so students are being asked to sign up as soon as possible. For more information, call (619) 594-5640. *** Three new members have been appointed to the Citizens Oversight Committee for the San Diego Community College District, the independent group charged with monitoring and reporting on the district’s $1.555 billion Propositions S and N capital improvement bond program. The new members, each appointed to a two-year term, are Matthew Anderson (representative at large), president of the International Facility Management Association’s San Diego chapter; George Hawkins (representative for San Diego County Taxpayers Association), president and CEO of the Associated Buildersand Contractors; and Alex Hu (representative at large), senior v.p. for Metro United Bank and v.p. of the San Diego Taiwanese Chamber of Commerce. The three join 14 other community representatives on the Citizens Oversight Committee. To date, 19 voter-approved projects have been completed under Propositions S and N. Ten projects are currently in active construction; nine will be completed this year and 12 new projects started. *** Vikram Juneja, a UCSD senior, has been named the first Churchill Scholar at the university and will use the $50,000 award to complete a one-year graduate program at Cambridge University, where he will work on a master’s thesis on cancer stem cell research. Juneja, a mechanical engineering major, has maintained a near 4.0 GPA, earning A+ grades in almost half his courses. Last spring when he was about to graduate, his academic interests expanded dramatically after completing one biology class. His passion lead him to stay at UCSD another year to complete the course work needed for graduate work in the life sciences. Biology professor Laurie Smith, the UCSD representative for the Churchill Scholarship program, nominated Juneja because she was impressed with his achievements and potential. Juneja is one of 14 Churchill Scholars selected this year from a pool of 99 applicants from 63 colleges and universities nationwide, the largest applicant pool since the competition began in 1963. ABOUT US San Diego Metropolitan Magazine and the Daily Business Report are your choice for San Diego business news. If you are a new business in San Diego and need to figure out who's who or a long standing business in San Diego that has something to be proud of; you have a home in San Diego’s original business magazine
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