Tuesday, February 27, 2024

Real Estate: Where is Coronado Real Estate Going in 2024?

Coronado Shores Co. is the oldest independent brokerage on the Island. We built The Shores in 1970, sold them, and now manage approximately 400 individually owned units as long term and vacation rentals. Services offered: real estate sales, vacation rentals and property management.

Contributing Content Writer: Horace Chavez DRE#01259508 | February 5, 2024


This is the first of a two-part series covering both Single Family Residential and Condominiums. Today we are going to bring together market insight on the Single-Family home market.

Coronado is an island and so is its real estate market. It generates its own stats from its unique location, demographics, amazing community, its demand for its quality of life and the second home market. The economics of real estate here can depend on many other factors that don’t apply to a normal market. Many homes are purchased with little to no financing. Buyers looking to enter this market are clicking away home searches at their computers from Washington, Canada, Arizona, East Coast, Mexico, the Middle East and Asia. All over the globe. The affluence of buyers keeps our market steady. Watching trends, such as days on the market and active inventory, could help homeowners and buyers navigate the market.

Now let’s look at some trends and give some insight into where things are today in comparison to recent dates. This week the median list price for Coronado is $4,295,000 compared to $3.8M this time last year. These price points can be higher or lower at different times of the year, as it reflects the type of inventory that is being listed for sale at any given time. It’s the trend over time that we follow to see in which direction prices are going. For Coronado, it’s been a strong upward trajectory which may show some signs of easing before it swings back up.

The inventory has increased to 42 units of active properties for sale today compared to 25 around this time last year. Our most recent low point was the first week of April 2023 with only 13 units on the market. The last time we hit 42 units on the market was the third week of May of 2021. We have been in the teens and 20s since then with a couple weeks of upticks in the 30s. We will likely see a dip in inventory before we start to see the seasonal upward summer trend.

The market has been cooling over time and we can see prices plateaued for a while. Despite the consistent decrease in the MAI, Market Action Index (graph above), we’re in the Seller’s zone. The index number of 30 is really in the middle. So, we can say it’s more of a neutral market than a buyer’s or seller’s market. October of 2019 was the last time it fell under 30 to 26. Historically, the Coronado Market Action Index has been stubbornly consistent in the 40s and 50s.

We are going to be watchful for changes in this index. If the MAI resumes its climb above 30, prices will likely follow with an upward momentum. If the MAI drops below this number and falls into the Buyer’s zone, watch for downward pressure on prices.

Things are looking bright. Indicators do show a strong steady year for Coronado Real Estate in the Single-Family home sector. The acceleration of appreciation may move at a slower pace with a possible dip before things pick up again. There is no doubt historically that Coronado has always been and continues to be favored by the long-term and short-term vacation rental market, investors and families wanting to join this amazing community with all it has to offer.

About the contributing writer: Horace Chavez, is Broker Associate with Coronado Shores Company as part of the sales team for ‘The Shores Group’ Real Estate Advisors. Areas of service include Homes Seller and Buyer Representation, Investment Properties & Property Management. Also Certified as a Probate & Trust Specialist. “Licensed since 1999, I’ve seen quite a bit. I recognize every buyer and seller have their own unique interests and goals. My experience and resources have allowed me to provide a high level of service to all my clients.”
Contact Horace Chavez at 619-992-7001 | email: [email protected]
DRE# 01259508
Sources: Altos Research, San Diego Association of Realtors

DISCLAIMER: This content is for informational and entertainment purposes only. The contents shared is deemed to be reliable and gathered from different sources including the perspective of the author. It is not meant for or intended to provide or replace any type of legal, tax, financial, or accounting professional or personal advice or service. It is highly advised that the reader seek their own professional advisor or counsel concerning their specific individual needs or circumstances before making any decisions or conclusions. Always review and know your options before making any decisions.


 

To view Coronado homes for sale or rent, for property management services, HOA management, or vacation rentals, please visit Coronado Shores Co.

 



Coronado Shores Co.
Coronado Shores Co.https://www.coronadoshoresco.com/
Coronado Shores Co. is the oldest independent brokerage on the Island. We built The Shores in 1970, sold them, and now manage approximately 400 individually owned units as long term and vacation rentals. Services offered: real estate sales, vacation rentals and property management.

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