San Diego Real Estate and Community News

 

 
April 8, 2024

What’s Going on In San Diego’s Housing Market?

Here’s what you need to know about the state of our housing market.

 

What’s been happening in our housing market so far this year? To find out, I’m diving into the latest numbers from the first quarter of San Diego’s market.

Beginning with San Diego County, the median sale price has increased 6.7% since this time last year. Notably, 3.5% of that growth occurred within the first quarter of this year, which suggests our market is looking strong in 2024.

The list-to-sales-price ratio has now surpassed 100% again, with properties often selling for $100,000 or more over the listed price. Based on this, it’s clear that buyers are gaining more confidence in our market again. Cash also remains king, with 35% of transactions in coastal and metro areas being all-cash offers.

The average days on market have decreased by 11%, with properties selling faster than the 30-day mark. However, inventory levels have remained stagnant due to fewer sellers listing their homes, resulting in fewer pending transactions. Despite this, the market remains healthy, with consumer demand effectively absorbing available inventory.

Buyers are looking for affordable opportunities to enter the market.

That being said, real estate is hyperlocal, and some areas are doing better than others. Some zip codes, like Cardiff by the Sea, have experienced slight declines, while others, such as Clairemont and Allied Gardens, have seen substantial appreciation rates of 13% to 15% in the first quarter of this year. This reflects a growing interest in more affordable communities and outer areas as buyers seek opportunities to enter the market.

If you’re buying or selling a home in our area, you need an expert who understands each neighborhood’s unique situation. Call or email if you have any questions in the meantime; I look forward to hearing from you!

Posted in Market Updates
March 23, 2024

What’s Happening With Housing Inventory?

Here’s what buyers and sellers need to know about housing inventory.

 

What’s been happening with inventory in our market recently? There’s been a lot of confusion about this topic because there seems to be some confusion about whether they're rising or falling. Let's take a look at the numbers together. Inventory levels are slightly higher compared to last year, but it's only a small increase, around half a month's worth. Currently, we're at about 1.5 months of supply, down from the peak of 1.8 months last year. For reference, six months of inventory is considered balanced for buyers and sellers, so we are still in a strong seller’s market.

Looking at the charts, you can see that the number of active listings and new listings coming onto the market has decreased by about 22% and 21%, respectively, compared to last year. This suggests a trend toward decreasing inventory levels.

“Houses are selling for nearly 100% of their list prices. ”

On the other hand, buyer activity is increasing, leading to list prices and sale prices creeping up. We're nearing a point where homes are selling for close to 100% of their listing price, and bidding wars are becoming more common. Median sale prices have also gone up by almost 4% since last fall. These changes are partly due to decreasing interest rates, which are encouraging more buyers to enter the market. If you have any questions about this or any other real estate topics, feel free to reach out to me at (619) 200-3236 or visit www.sdcoastalagent.com. I look forward to hearing from you!

Posted in Market Updates
March 11, 2024

Is a Recession Coming? What It Means for Housing

Find out what’s in store for the housing market and changes in the economy.

 

What’s been going on in the housing market this year? There's been a lot of talk lately about a potential recession and its impact on the housing market. So, let's look deeper into the data and see what it tells us.

Economists have been going back and forth on whether a recession is on the horizon. Based on some data from the Wall Street Journal, the economists were in agreement that there would be a recession.

However, their views have shifted. This year, due primarily to low unemployment rates (currently at 3.7%), most experts believe a recession is unlikely. The historical average unemployment rate since the 1940s is 5.7%, and for the 2008 housing market recession, it was a much higher 8.3%.

“Even if a recession occurs, it likely wouldn't be severe or driven by a housing market crash.”

 

Current data suggests a healthy economy, with unemployment well below historical averages. While predictions indicate a potential rise in unemployment, it's still expected to stay below the 5.7% average.

Even if a recession occurs (defined as three consecutive quarters of slowing GDP), it likely wouldn't be severe or driven by a housing market crash. Interestingly, housing market prices have actually increased during most past recessions. Some data shows that four out of the last six recessions saw positive appreciation in housing prices.

While there may be fewer overall opportunities, there could be pockets of opportunity for buyers. When people lose jobs and lack savings, they might need to sell their properties, creating situations where buyers can find good deals.

If you'd like to discuss real estate further, feel free to reach out at (619) 200-3236. I look forward to hearing from you.

Posted in Market Updates
Feb. 26, 2024

Maximize Your Home's Potential: Top Tips for a Standout Spring Sale

Four tips to help sellers prepare for the spring real estate market.

 

As we bid farewell to winter and embrace the upcoming spring season, many of you may be contemplating putting your house on the market or exploring potential sales. To guide you through this process and ensure a successful sale in the competitive spring market, I want to share some key elements you need to consider.

1. Start with a spring-cleaning mentality. Embrace the spirit of spring cleaning by decluttering and organizing your home. Consider a storage unit for items you wish to keep but don't necessarily need during the selling process. Hosting a yard sale is also a great way to declutter and make a little extra money.

2. Property staging. Take a closer look at property staging. It's not just about adding items; it's also about decluttering and neutralizing your home to appeal to a broad range of potential buyers. The goal is to help buyers envision themselves in the space, ultimately leading to more offers and a higher selling price.

“Showcase your home in its best light and make the most of the spring real estate market.”

 

3. Freshen up your yard. Even in the winter months, investing in plants for your yard can make a significant difference when you decide to put your home on the market. Plant them now so they can establish themselves, creating a vibrant and healthy appearance in the coming months. Curb appeal is crucial for a great first impression.

4. Find a listing agent. One of the essential steps is finding a reliable listing agent. Consider reaching out early in the process to discuss your plans and develop a game plan tailored to your needs. Planning ahead is key, and having a seasoned professional by your side can make a significant difference in the selling process.

If you're thinking about selling your home, don't hesitate to reach out to me. I'm here to help you navigate the process and create a strategy that works for you. Call me at (619) 200-3236 for a personalized conversation about your specific property and needs.

Posted in Selling Your Home
Feb. 15, 2024

The Hidden Risks of Holding Out for Spring Market

Waiting for spring could mean missing out on your ideal home.

 

As the housing market evolves, the phenomenon of FOMO (Fear of Missing Out) plays a significant role in decision-making, especially when considering the timing of purchasing a home. Many buyers hold off during the winter months, anticipating the spring market's increased inventory will present the perfect home—a potential unicorn that might just be a myth.

Recent trends, however, suggest a different strategy might be wise. Inventory has decreased by 20% from its November peak, marking a significant shift to just about a one-month supply. This dwindling inventory is unprecedented in recent years, making the current market particularly challenging for buyers waiting on the sidelines.

“For those on the fence, consider this: the ideal home may already be within your grasp.”

 

Moreover, an unexpected rise in median sale prices of homes by 3.5% from December to January further complicates the wait-and-see approach. Typically, the holiday season sees a cooling off in the market, offering buyers a chance to snag a deal. This year, instead, prices surged in a single month, reminiscent of the period from 2021 to 2022 when looming interest rate hikes spurred buyer motivation.

This combination of decreasing inventory and interest rates is fueling a competitive environment for buyers, making it a critical time to act. Waiting for the elusive spring market could not only limit your options but also place you in a more competitive and costly bidding environment.

For those on the fence, consider this: the ideal home may already be within your grasp. Waiting for more inventory could lead to missed opportunities and regrets. If you're navigating the market and need guidance or have questions, don't hesitate to call or email me. The right time to find your fit in the market might just be now.

Posted in Buying a Home
Jan. 25, 2024

Understanding Real Estate Dynamics for 2024

Discover strategies for thriving in the 2024 housing market.

 

As we step into 2024, the real estate landscape presents both challenges and opportunities. Reflecting on the trends of 2023, we observed a steady appreciation rate of about 2.5%, a slight increase in market inventory, and fluctuating interest rates, which seemed to stabilize towards the end of the year.

The Federal Reserve's decision to halt the hike in interest rates suggests a potential for stabilization or even a reduction in rates, although this might not occur until after 2024. The aim is to get inflation under control, currently hovering around 3.1% - closer to the Fed's target of 2% than the 9% peak witnessed previously.

The upcoming year might see a somewhat stagnant market in terms of appreciation levels. Sellers, enjoying low interest rates, may choose to stay put, limiting the inventory and preventing a shift toward a buyer's market. We anticipate the market to maintain a healthy 2-4 months' supply of inventory, offering buyers more choices without the pressure of an oversaturated market.

“The 2024 real estate market holds varied prospects for different market participants.”

 

2024 presents a unique window for buyers. With demand expected to be lower due to higher interest rates, there’s likely to be less competition. As rates potentially decrease, affordability will improve, leading to an increase in property prices and competition. By purchasing in 2024, buyers can secure better prices and later benefit from refinancing options as rates drop.

Buyers should consider leveraging the current market conditions and explore options like rate buy-downs negotiated with sellers. For sellers, understanding these market dynamics is crucial to strategizing effectively for a successful sale.

The 2024 real estate market holds varied prospects for different market participants. Whether you are a buyer looking to make the most of the current conditions or a seller planning your next move, it’s crucial to stay informed and strategize accordingly. For more insights or personalized advice, feel free to call or email me – I’m here to help you navigate these evolving market trends.

Posted in Market Updates
Jan. 12, 2024

Your 2023 Real Estate Year in Review

Here’s what you need to know about 2023’s housing market stats.

 

Happy New Year! As we step into 2024, let's take a moment to reflect on the real estate market in 2023. Here's a concise market recap:

The median sales price increased by 2.5% last year, indicating a more conservative level of appreciation compared to previous years, where double-digit appreciation was common. However, the market remains on a positive trajectory despite the concerns of those who thought it might be slipping.

Inventory levels saw a significant 76% increase, although still relatively low when compared to the historical average over the past decade, which usually hovers around three to five months supply. We're currently at 2.5 months of supply, so we’re still in a seller’s market even though there are more options for buyers.

“The housing market was much more robust than many experts predicted.”

 

Inventory increased significantly, especially as interest rates increased to 8% in October. If you check out the graph at 1:08, you can see the interest rates during this period.

As we entered the holiday season, the market saw a slight decrease or a stabilization in inventory levels and remained below a two-month supply. The average days on market also extended from 25 to 30 days, suggesting lower demand among buyers.

While interest rates played a role in market dynamics, the number of cash transactions remained relatively stable at 24%. In coastal markets, cash transactions surged to 44%, a notable increase from the previous year's 38%, indicating a shift towards real estate as a secure investment amid uncertain financial markets.

Looking ahead to 2024, there is potential for improved market conditions since interest rates are expected to decline. The Federal Reserve's decision not to raise rates further has contributed to a positive outlook. If you seek more information or have specific questions related to your neighborhood, feel free to contact me at (619) 200-3236. I look forward to hearing from you!

Posted in Market Updates
Dec. 12, 2023

Understanding Real Estate Commissions

My expert thoughts on real estate commissions and the big lawsuit.

 

In light of recent court rulings and discussions around real estate commissions, I've been engaging in numerous conversations with past clients, friends, and family about this topic. I think it's crucial to address some misconceptions and provide clarity, especially in the current real estate landscape.

Firstly, the core issue in these lawsuits isn't the commission paid to the listing agent but the lack of awareness among sellers that they're also paying for the buyer's agent. In places like San Diego, this is disclosed upfront in the listing agreement. Sellers know from the get-go that if a buyer's agent is involved, the commission will be shared. This transparency eliminates any gray areas about who's paying the commission.

However, a significant concern arises when considering buyer affordability, especially in expensive markets. Many buyers struggle to muster enough for a down payment and necessary reserves, let alone extra funds to pay a buyer's agent's commission. Traditionally, sellers bear this cost because they usually have the means through home equity. This arrangement benefits them by attracting more buyers, which often drives up the home's selling price.

“While hiring a real estate agent isn't mandatory, most people prefer to do so for their expertise and knowledge.”

 

The value that real estate agents bring to the table can't be overstated. Just like most people wouldn't represent themselves in court without legal knowledge, navigating real estate transactions without professional assistance can be daunting. Real estate agents earn their commission by guiding sellers to maximize their profits and helping buyers make informed decisions.

It's also worth noting that while hiring a real estate agent isn't mandatory, most people prefer to do so for their expertise and knowledge. Attempts by companies to represent only sellers without cooperating with buyer's agents have generally failed, underlining the value and necessity of professional representation for both parties in a real estate transaction.

If you're interested in learning more or wish to continue this discussion, feel free to contact me at (619) 200-3236. And remember, whether you're buying or selling, the right information and guidance can make all the difference. Make it a great day, and thanks for tuning in.

Nov. 27, 2023

Explaining Potential Benefits and Problems With Assembly Bill 1033

What homeowners in San Diego need to know about Assembly Bill 1033.

 

I'd like to shed light on Assembly Bill 1033, explaining its purpose and highlighting some concerns. AB 1033 was recently signed by Governor Newsom, aiming to increase housing units by allowing homeowners to sell off an Accessory Dwelling Unit (ADU) on their property.

The concept of creating more housing options, especially for entry-level buyers, is commendable. However, there are notable issues with the bill's loose structure. The relaxation of building codes for ADUs, while encouraging housing development, raises concerns about potential shortcuts by builders who might evade higher standards required for new constructions.

Furthermore, the bill lacks clarity on ownership types. It doesn't specify whether ADUs can be condominiums, timeshares, or subject to fractional ownership. This ambiguity may pave the way for Airbnb or vacation rentals, impacting the neighborhood's character. The bill also fails to distinguish whether investors can purchase these units or if they must be owner-occupied, potentially leading to increased competition and rising prices.

“This bill could benefit from much-needed clarification.”

 

The neighborhood's integrity is at stake, especially without clear guidelines for maintenance responsibilities in the absence of CC&Rs or HOA regulations. Common areas like gas meters, water meters, and sewer lines pose questions about accountability in case of breakdowns.

For retirees looking to sell their ADU, a potential issue arises with the triggering of a due-on-sale clause. This could prompt lenders to seek repayment, as conveying ownership of a portion of the property may violate single-family home loan terms.

While the bill's goal is commendable, it requires clearer specifications to prevent unintended consequences. Addressing issues such as investor involvement, neighborhood regulations, and potential triggers for loan clauses is crucial for the bill's success. If you have questions about this bill or ADUs, please call or email me. I look forward to hearing from you.

Posted in Real Estate News
Nov. 13, 2023

Wishing You a Happy Thanksgiving

This year and every year, we’re thankful for you in our lives.

 

The 2023 holiday season has officially begun! I hope you are as excited as I am.

I’d like to take a moment to express my gratitude to all of you this Thanksgiving. I have met some truly wonderful people, and I'm proud to have helped so many reach their real estate goals over the years. I wouldn’t be where I am today without all of your support.

I hope you have a great Thanksgiving Day. May your turkey be plump, your pies be tasty, and may you enjoy your friends and family.

In the meantime, please don’t hesitate to reach out if you have any real estate questions. I would be happy to help you.

Happy Thanksgiving!