Thursday, May 23, 2024

Real Estate: Q1 2024 – Coronado Real Estate Market Update

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  |  April 15, 2024

Condos and single-family home sales continue to outstrip supply. Coronado continues to be in a strong seller’s market and the Spring selling season only shows it getting stronger. The momentum throughout this first quarter has shown the trend to be moving in an upward direction in pricing pressure.

For condos, specifically, inventory has been steady yielding about 20-26 units at any given time this year. Comparing these numbers to last year’s first quarter which had anywhere between 11-18 units on the market on average. Pricing on condos has shown a slight dip with approximately 36% of this year’s inventory showing some sort of price decrease. Contrary to the market index above at 46 shows a very strong seller’s market.  This downward pressure will likely be light and variable. These price decreases can be due to many factors not related to the market itself. They can be due to an initial over-pricing of property when it entered the market, to sellers really needing to move their money to another investment vehicle and timing becomes a factor.

Condos are still where most of the action is today. There is more buyer activity here in trying to enter this specific market segment. The median days on the market for condos stands at 35 vs. single family homes at 46. The higher the price the more time it will likely sit on the market.

The single-family home market in Coronado also shows 21% of the inventory with a downward price adjustment (see graph above).  This number is actually an improvement from February’s 46% of homes with downward price adjustments. This is very common for homes with higher price points. There is always more of a spread to make these price adjustments in buyer and seller negotiations. Keep in mind that these price adjustments do not necessarily reflect market conditions or that they are signs that the market is moving in the direction of a buyer’s market. As with the condo segment, it can reflect a sellers’ expectations may be higher than what the market is willing to pay. In a market like Coronado, it is safe to keep in mind that some of these purchases and sales are merely investments and do not come with any emotional attachments. It is simply money moving from one investment vehicle to another or a possible Trustee sale. Inherited money, or assets, that need to be spread among family members.

Coronado does have its fair share of long-time residents that need to sell for many reasons and that emotional attachment is very present and hard felt. These transactions are more emotional, moving and personal when the negotiations get real. Definitely adds a layer of compassion and empathy to me as a representative of the seller. It is unavoidable feeling the emotions of years of memories that the home represents.

Okay, a bit off topic here but in closing, this has been a great year for Coronado real estate. As of January 1, we have seen 30 condo closings ranging in price from $920,000 to $4 Million. In the single-family home market, there have been 44 closed transactions ranging in price from $1.2 Million to $28 Million. All in all, not a bad start to the year.



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. Licensed since 1999, “I recognize every buyer and seller have their own unique needs and goals. My experience and resources have allowed me to provide a high level of service to all my clients.” Areas of service include Homes Sales, Investment Properties & Property Management. Probate & Trust and a Seniors Real Estate Specialist designation.
Contact Horace Chavez at 619-992-7001 | email: [email protected]
DRE# 01259508

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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