Daily Business Report-Oct. 10, 2018
So far in 2018, resale home sales are off by 9 percent compared to the same nine months of 2017.
San Diego County home sales
drop significantly in September
Sales of previously owned homes saw a significant drop in September, according to housing statistics compiled through the Multiple Listing Service by the Greater San Diego Association of Realtors.
Single-family home sales dropped 25 percent in September, compared to August, and were nearly 22 percent lower than the same month last year. Condominiums and townhomes similarly saw an 25 percent decrease last month, and are down about 23 percent from September of last year. So far in 2018, resale home sales are off by 9 percent compared to the same nine months of 2017.
Median prices, however, have continued to exhibit strength throughout the year. September single-family home sale prices reached $650,000, just slightly under August’s price, while condos and townhomes (attached) properties increased nearly 2 percent from the previous month, standing at $432,500. Collectively, prices are up about 7 percent from last year. In September, resale properties were closing escrow in an average of 30 days.
“I’m hopeful that residential sales will continue along a mostly positive line for the rest of the year,” said SDAR President Steve Fraioli, “but it’s possible that rising prices and interest rates may factor into many home purchase decisions.”
In September, the ZIP codes in San Diego County with the most single-family home sales were:
• 92127 (Rancho Bernardo West) and Fallbrook (92028), both with 39
• 92078 (San Marcos South) and 92130 (Carmel Valley), both with 37
• 92064 (Poway) with 35
• 92024 (Encinitas) with 34
• 92009 (Carlsbad SE), 92026 (Escondido North) and 92056 (Oceanside East), each with 33
The most expensive single-family property sold in September in San Diego County is a seaside gated estate on three acres in La Jolla Farms with its own lake. The home, built in 1996, is 14,200 square feet, with 7 bedrooms, 14 baths, and a sale price of more than $16.2 million.
SDAR’s housing statistics are compiled monthly from the Multiple Listing Service. Click here for a detailed look.
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Office growth trend continues in San Diego;
new construction leads to bump in vacancy
Cushman & Wakefield’s newly released office market report for San Diego showed overall market fundamentals remain on solid ground in the desirable Southern California coastal region. Office occupancy grew another 244,000 square feet across all classes, bringing year-to-date net absorption to over 585,000 square feet. After a slow start to the year, the past two quarters have now averaged approximately 260,000 square feet of growth—which based on anticipated office job growth for 2018 is also more along the firm’s expected absorption path for this year. On the flip side, vacancy did report its first quarterly increase in more than two years but there was a good and expected explanation for that.
“San Diego’s office vacancy ended the third quarter of 2018 at 13.4 percent, an increase of 80 basis points from midyear but still 30 basis points below a year ago,” said Jolanta Campion, Cushman & Wakefield’s research director in San Diego. “This upward shift ended the county’s streak of nine consecutive quarters of decreasing office vacancy but was largely the result of unoccupied new construction—some of which, however, already has future commitments in place. Further adding to the positive side of the equation, the third quarter marked the 17th consecutive quarter of occupancy growth during which tenants have now absorbed 6.5 million square feet combined across all classes.”
Another major construction headline in the third quarter was Manchester Pacific Gateway breaking ground in August, beginning with a new 372,000- square-foot office tower for the U.S. Navy.
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County to apply for state
funds to help the homeless
The County Board of Supervisors voted Tuesday to allow the Health and Human Services Agency to apply for state emergency funds to address homelessness in the region. The California 2018-19 state budget includes $53 million for the California Emergency Solutions and Housing Program, which provides grants to local communities to develop programs that assist people who are homeless or at risk of not having a stable place to live.
Funds from this program will be distributed in two rounds, potentially bringing the county of San Diego about $2.5 million during the first distribution.
The money can be used for rental assistance, housing relocation and stabilization services or homeless prevention. The funds can also be used for subsidies for new and existing affordable permanent housing units for people and/or families who are experiencing or are at risk of homelessness.
Over the past few years, the County has made significant investments in outreach, treatment, and housing services to people who are homeless or are at risk of homelessness.
County efforts including the $25 million Innovative Housing Trust Fund, identifying excess properties to build affordable housing, Whole Person Wellness, Project One for All, and the Stepping Up Initiative, which brought the region $4.2 million for outreach and treatment of people who are homeless and are suffering from a mental health disorder.
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NuVasive announces partnership
with Biedermann Technologies
NuVasive Inc. a leader in spine technology innovation, announced it has entered into a strategic partnership with Biedermann Technologies GmbH & Co. KG, a company that holds a broad and extensive patent and technology portfolio in the fields of spinal and extremity surgery. It is based in Donaueschingen, Germany.
Biedermann Technologies is well regarded for its world-class design expertise within many medical device industries and holds one of the most comprehensive and innovative patent portfolios in the field of spinal surgery. Within the terms of the license and services agreement, Biedermann Technologies has granted NuVasive licenses to intellectual property relating to its spinal technology portfolio.
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Invitation to today’s Open House
for S.D. Ocean Planning Partnership
The San Diego Ocean Planning Partnership (SDOPP) invites the public to attend an Open House to learn more about the partnership and the recently released Draft Preliminary Assessment Report. The Open House is an opportunity for stakeholders and members of the public to ask questions and provide comment on the Draft Preliminary Assessment Report, which is available for feedback until Oct. 19, 2018. This feedback will help the SDOPP better understand the ocean space and the relationship between users and uses. A final Preliminary Assessment Report is anticipated to be complete at the end of 2018.
The SDOPP is a collaborative pilot project between the California State Lands Commission and the Port of San Diego. Throughout this pilot project, the SDOPP intends to learn about the ocean space offshore of San Diego County through robust and transparent public engagement and data collection.
The Open House will be Oct. 10 at 6 p.m. at the Port of San Diego Administration Building, 3165 Pacific Highway, San Diego.
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2018 Green Homes Tour
Scheduled for Oct. 21
The San Diego Green Building Council will host the San Diego Green Homes Tour on Sunday, Oct. 21. The popular one-day event will showcase 13 homes located in the communities of South Park, Normal Heights, Pacific Beach, Point Loma, La Jolla, Encinitas, Vista, Lakeside, Bonita, Jamul, Elfin Forest/San Elijo Hills and Campo.
Now in its ninth year, the Green Homes Tour brings together hundreds of members of the local community to celebrate best practices in green building and design while showcasing the innovative work of some of the industry’s top professionals. It is a unique opportunity for members of the public as well as industry professionals to step inside a diverse mix of private residences to get ideas, find inspiration and explore various green features in real-world settings. This year’s tour also includes a number of eco-friendly gardens and exteriors spaces.
For more information, click here
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Personnel Announcements
Hannah Rangel named director
of San Diego Chinese Historical Museum
The San Diego Chinese Historical Museum announced the appointment of Hannah Rangel as its new director. A San Diego native, Rangel is a leader in
organizational management, exhibit design, and content development. In this capacity, she will oversee administration, exhibition development, marketing, and educational programs. She speaks Spanish fluently as a native speaker and is already learning to speak Chinese.
Rangel graduated from University of Nevada, Las Vegas with a degree in anthropology and criminal justice. She is currently pursuing her master’s degree in business from Northwestern University.
Rangel designed the Desert Discovery, a play space for the Lied Discovery Children’s Museum, forming successful collaborations with the board to bring it to completion. Rangel won the prestigious 2000 American Youth Museum Practice Award. Her ability to manage such a groundbreaking project assisted her in taking leadership positions such as the director of science, the director of volunteers, and exhibition developer at the Bigelow Aerospace, the San Diego Natural History Museum, the San Diego Museum of Man, and the Atomic Museum.
