San Diego Real Estate Newsletter – October 2017

September 27, 2016

U.S. pending home sales drop 2.6%

“A monthly index measuring signed contracts to buy existing homes fell 2.6 percent in August compared to July. That is the fifth drop in the past six months and below expectations,” according to the National Association of REALTORS as reported by CNN. We are missing the “move-up” market which is the backbone of the real estate market. We are still liquidating a large percentage of investor owned properties.

September 26, 2017

San Diego sets pace in July

San Diego Union-Tribune reports, “San Diego County home prices rose the most in California at 7.1 percent in a year, said the S&P Case-Shiller Indices, which are adjusted for seasonal swings. Nationwide home prices increased 5.9 percent in the same period, which was led by growth in the Pacific Northwest. Los Angeles and Orange counties increased 6.1 percent and San Francisco by 6.7 percent.”

U.S. home prices up more than predicted

Bloomberg reports on the S&P CoreLogic Case-Shiller survey of housing in 20 U.S. cities that show, “Buyers are competing for a limited number of for-sale homes, allowing sellers to boost asking prices. Property values are consistently outpacing wage growth, helping explain why the share of first-time buyers of previously owned homes in August was at a one-year low. At the same time, owners’ equity as a share of total real-estate holdings climbed in the second quarter to the highest level in 11 years.”

September 25, 2017

Fewer listings mean new price peaks

The San Diego Union-Tribune reports housing statistics on the first half of 2017 which shows the continuing trend of low inventory driving up selling prices in San Diego County. “Most notably, the number of homes for sale dropped sharply this year. There were 28,725 home listings in the first half, down from 33,890 the same time in 2016, said the Greater San Diego Association of Realtors.”

September 22, 2017

Triple housing production needed

“San Diego needs to roughly triple the number of homes it builds each year to keep up with demand and keep prices down, said a San Diego Housing Commission report ,” according to a story in the San Diego Union-Tribune. My question is  where?  The commission talks about increasing density in various ways because there is no more develop-able land in San Diego. I wish the politicians good luck with that if hey want to be re-elected.

September 21, 2017

57% would move due to housing expense

“More than half of registered voters in San Diego and Orange counties have considered leaving California because of high housing costs, said a poll from U.C. Berkeley’s governmental studies school,” write Phillip Molnar in the San Diego Union-Tribune. In the last couple of years I have worked with clients who have moved to Arizona, Wyoming and Idaho due to housing costs and quality of live issues in Southern California.

September 20, 2017

County median resale  price $585,000

CoreLogic statistics reported by the San Diego Union-Tribune indicate that the median price for a resale home in San Diego County was up 6.4% in August compared to last year.

September 16, 2017

Hey, wait a minute!

Diana Olick of CNBC reports on a “new” flat fee listing company. I’ve been offering flat fee listings for years. Real estates because of location, price, terms, condition and accessibility – not because of the name on the for sale sign.

San Diego Real Estate Newsletter – September 2017

August 31, 2017

360 degree listing videos

I’ve started creating 360 degree videos of my listings. The first is a video of a residential building lot overlooking Lake Hodges. This is new technology and the videos will improve as the cameras and editing software develop.

Local home building down from last year

“In the first six months of 2017, the county has issued 17.5 percent fewer permits than the same time last year,” reports Phillip Molnar of the San Diego Union-Tribune. “A lack of new homes pushes up prices because of fierce competition for a limited number of houses and condos. While higher home values are good for owners in most cases, it can make home ownership out of reach for many potential buyers.”

August 30, 2017

Closed Sale – Encinitas

Home For Sale Encinitas Ranch
Home For Sale Encinitas Ranch

Encinitas Ranch three bedroom, two and one-half bath with 2,114 sq.ft.  on premiere lot. Ocean and golf course views. Sold in one week for $1,070,000.00.

Appraisal rules loosened

According to a story by WTOL, “The nation’s two largest loan backers, Fannie Mae and Freddie Mac, are loosening their rules when it comes to lending. The mortgage giants are now allowing for home appraisals to be waived on certain loans.”

August 29, 2017

U.S. buyers compete for limited supply

Diana Olick of CNBC reports on how the drop in housing supply is driving up prices or resale homes across the U.S. “After flattening slightly in May, price increases jumped again in June, now up 5.8 percent nationally compared with a year ago, according to the latest release from S&P CoreLogic Case-Shiller.”

Oh No! San Diego prices drop…

“The San Diego median home price cooled slightly in July, ending a three-month streak of record-breaking peaks,” writes Phillip Molnar of the San Diego Union-Tribune. But that’s comparing June to July of 2017. The media always goes for the negative news to promote fear and anxiety. San Diego home prices were up 8.6% from June of last year but that’s not the headline they choose.

August 14, 2017

Buyers use smaller down payments

CNBC’s Diana Olick reports that “In the past 12 months, 1.5 million borrowers bought their homes with down payments of less than 10 percent, marking a seven-year high.” But as far as I’m concerned Yogi Berra said it best, “it’s deje vu all over again.” I’ve read this headline at least four other times in my 40 year real estate career. If there is a small hiccup in market values these home buyers can be upside down on their home loans pretty quickly. In our new culture upside down home buyers walk away from their loan obligations, the banks take the properties and the housing bubble starts all over again. Not to worry, Uncle Sam will bail us out.

August 9, 2017

San Diego affordability rate is 26%

“San Diego was one of the most expensive regions for home buyers in California in the second quarter of this year, with just 26 percent able to comfortably purchase the median-priced house,” reports The San Diego-Union Tribune. According to the article, lack of construction of new residential properties is a primary factor driving San Diego home prices higher.

August 6, 2017

Affordable new homes in Chula Vista

San Diego Union-Tribune story by Phillip Molnar discusses new home buying opportunities in Chula Vista’s Otay Ranch, “a new 1,504-square-foot townhouse for $378,000, around $200,000 less than what something similar would have cost them closer to downtown.”