Summerfied Estates home in Poway, CA becomes a Pending Sale in only three days. Offered for $769,000.00. Pete Saxon Realty
Updated home on cul-de-sac in very popular Poway community of Summerfield Estates. Large combination living room/dining room with brick fireplace. Big family room off upgraded kitchen. Master bedroom features updated bath. Nice back yard with covered patio – plenty of room for kids and pets. HOA pool is a popular family gathering place in the summer. Several family community activities throughout the year.
This month’s articles from MarketWatch, San Diego Union-Tribune, USAToday and the National Association of REALTORS all point to a stabilizing of the residential real estate market. The headlines all read negatively but the hyper appreciation of home prices could not continue unchecked. It’s good news for home buyers and a leveling of the playing field for buyers and sellers.
October 31, 2018
Home price appreciation slows
“The S&P/Case-Shiller 20-city index rose a seasonally adjusted 0.1% and was 5.5% higher compared to its level a year ago, the lowest annual increase in 20 months,” reports MarketWatch. INVESTOPEDIA
October 30, 2018
San Diego home sales down 17.5%
Phillip Molnar of the San Diego Union-Tribune reports on CoreLogic statistics indicating that the total number of homes sold in the San Diego County region was the lowest level since 2007. The average sales price also slipped below the all time high reported in August.
Millennials buying homes
USAToday reports that, “Millennials are shrugging off those growing housing-market obstacles and snapping up homes in greater numbers as they land better jobs and bigger raises.” I believe home ownership is still a goal of many. It has been a lack of inventory, not lack of motivation that has stymied the market over the last couple of years.
Economist Robert Shiller does not predict another housing bubble
“While noting that home prices having been rising since 2012, Professor Robert Shiller of Yale University told CNBC: ‘A housing bubble is not much in evidence…It’s not the same. It’s more placid.’ He added, ‘I don’t expect a sharp turn in the housing market at this point,'” comments Shiller in an INVESTOPEDIA article.
Homeowners staying put longer
I’ve been sensing this all year and an article in MarketWatch confirms that homeowners just aren’t moving. In San Diego folks aren’t selling because there’s nowhere to move to in the local area. All my sellers in the last couple of years have moved out of state. This also means fewer homes available for first time home buyers and low inventory levels which has been the cause of high property value appreciation.
Repeat buyers getting older
USA Today reports, “Repeat buyers are getting older. The median age was 55 years, up from 54 last year,” along with other interesting statistics about today’s home buyers’ profile.
October 25, 2018
U. S. pending home sales up 0.5%
The National Association of REALTORS Pending Home Sales Index indicates that, “Pending home sales rose slightly in September and saw substantial increases in both the West and Midwest. Lawrence Yun, NAR chief economist notes that, “‘the lack of inventory of moderately priced homes and affordability as factors restraining the housing market but when viewed through the lens of the last few decades, the current affordability climate is still favorable. “’When compared to the year 2000, when the housing market was considered very healthy and home sales figures were roughly equivalent, the affordability conditions were much lower compared to now. So even though affordability has been falling recently, the demand for housing should remain steady.’”
This month’s real estate articles in local and national publications focus on slowing residential real estate price appreciation. Prices are still going up but at a slower pace. Your property’s value is dependent on real estate activity in your specific neighborhood. Prices and activity can vary on either side of a busy street depending on conditions in that specific location.
Be cautious when using the artificial intelligence property valuation tools like Zestimate or the ones you may find on your bank’s website. These are very generic and cannot know the specific conditions that effect property values in your location. They are marketing tools designed to entice you to contact them for information.
September 28, 2018
Median San Diego home price now $583k
‘San Diego County’s median home price hit an all-time high of $583,000 in August, real estate tracker CoreLogic reported,” writes Philip Molnar of the San Diego Union-Tribune.
September 27, 2018
U.S. pending home sales slow
“ Pending home sales fell slightly in August and have now decreased on an annual basis for eight straight months, according to the National Association of Realtors®.“
September 25, 2018
San Diego price increases slow to 6.2%
“Existing home prices in July for the San Diego metropolitan area increased 6.2 percent in a year, its slowest pace since January 2017, said the S&P CoreLogic Case-Shiller Indices,” writes Phillip Molnar of the San Diego Union-Tribune.
U.S. home price increase slows
Dianna Olick of CNBC reports on S&P CoreLogic Case-Shilller twenty city index. “Las Vegas, Seattle and San Francisco continue to see the biggest annual gains in home prices, with increases of 13.7 percent, 12.1 percent and 10.8 percent respectively. Five of the 20 cities saw home price gains accelerate annually compared with June.”
September 24, 2018
More balanced market?
REALTOR.com data indicates, “Make no mistake: Prices are not exactly tumbling down—at least, not on the national level. And there’s no evidence on the horizon of a looming housing bubble about to pop and drag the world economy down with it. Median home list prices are still up 7% year over year this August, according to an analysis of realtor.com data.”
September 20, 2018
California home sellers dropping prices
“After three years of soaring home prices, the heat is coming off the U.S. housing market. Home sellers are slashing prices at the highest rate in at least eight years, especially in the West, where the price gains were hottest,” according to CNBC’s Dianna Olick.
U.S. existing home sales stable
MarketWatch reports “After falling for four straight months, sales of previously-owned homes stabilized in August. Existing-home sales were 1.5% lower than a year ago. And although sales seem to have stagnated in 2018, in the year to date, they’re only 1.2% lower than the same period a year ago.”
Fastest growing and declining U.S. housing markets
“Like anything else, home prices are driven by supply and demand forces, which are highly correlated with the area’s economy, job market, and population changes. Demand tends to be higher in stronger economies, with a healthy job market, and a growing population,” according to USAToday article.
August 1, 2018
The two most important articles in this newsletter concern potential government intervention in the real estate market. The articles about a California statewide vote for rent control and the story about the City of San Diego forcing landlords to accept tenants with government vouchers are important to the future of property ownership in San Diego and California.
Is U.S. housing demand dipping?
CNBC’s Diana Olick reports that, “Red-hot home prices, rising mortgage interest rates, very few listings on the entry level, and a high rate of student loan debt have weighed on buyers for a while, but a strong economy and growing employment had mitigated those factors. Now, however, a market stalemate is developing as rates and prices continue to rise, further weakening affordability.”
July 31, 2018
San Diego prices outpace U.S.
San Diego Union-Tribune that “San Diego County home prices in May increased 7.3 percent in a year, faster than the nationwide average, according to the S&P CoreLogic Case-Shiller Indices. The San Diego median home price in May for a resale single-family home was $619,500, said CoreLogic.”
July 24, 2018
So Cal home sales drop 11.8%
“Southern California home sales hit the brakes in June, falling to the lowest reading for the month in four years,” reports Diana Olick of CNBC. This includes all homes including new homes so fluctuating new home construction will have an impact on the report.
San Diego home prices hit all time high
San Diego Union-Tribune reports that, “San Diego County’s median home price hit another record in June, reaching $575,000, while sales hit their lowest point in years, real estate tracker CoreLogic reported Tuesday.The previous record was $570,000 in May. Home prices have been steadily breaking records all year, with prices increasing 5.5 percent in a year as of June.”
July 3, 2018
Is rent control coming to San Diego?
“A statewide vote to allow more widespread rent control could have big implications for San Diego County if it passes,” writes Phillip Molnar in the San Diego Union-Tribune. Rent control is clearly beneficial to prospective renters but has a negative impact on the natural function of a supply-demand economy.
July 2, 2018
San Diego landlords may be forced to accept housing vouchers
David Garrick of the San Diego Union-Tribune reports that, “Aiming to prevent discrimination against the poor and minorities in a tight housing market, San Diego is considering a new law that would prohibit landlords from rejecting tenants because they use federal vouchers to help pay their rent.”
This month’s newsletter is brief as I was in and out of the emergency room four times in June with a non life threatening but pretty serious health issue. Real estate news remains pretty much the same with increasing home prices driven by very low inventory, especially in the “affordable” price ranges. I am sensing that demand is slowing a bit.
County prices up 7.8%
The S&P CoreLogic Case-Shiller Indices of the top 20 housing markets in the U.S. reported, “All cities in the closely watched housing index had increasing prices, with Seattle leading the pack with a 13.1 percent gain. The yearly national gain was an average 6.4 percent,” according to an article in the San Diego Union-Tribune.
U.S. existing home sales drop again
“U.S. home sales unexpectedly fell in May as an acute shortage of properties on the market pushed house prices to a record high,” reports CNBC.
May 31, 2018
U.S. pending home sales slip 1.3%
“Pending home sales, which measure signed contracts to buy existing homes, fell a wider-than-expected 1.3 percent in April compared to March, according to the National Association of Realtors.” reports Diana Olick of CNBC.
It’s a sellers market!
We already knew that in San Diego but here’s a story from my hometown of Toledo, Ohio that says the same thing. Incredible values available.
County home prices outpace nation
“San Diego County home prices in March increased 7.7 percent from a year ago, outpacing most of the nation, a closely-watched housing index reported Tuesday,” according to S&P/Case-Shiller national index reports the San Diego Union-Tribune.
U.S. map of salaries needed to buy
howmuch.net website has a map of the U.S. showing how much salary is needed to purchase a home. No need to ask why people are fleeing California.
May 29, 2018
U.S. price increases not slowing down
MarketWatch reports that according to the S&P/Case-Shiller national index, “Home-price growth showed no sign of slowing down. Demand is strong, supply is short and favorable economic conditions are making it possible for many people to bid prices up.”
May 25, 2018
April sets another record in San Diego
San Diego Union-Tribune reports that “San Diego County’s median home price hit an all-time high of $570,000 in April, increasing 8.6 percent in a year, said real estate tracker CoreLogic. It surpasses the previous peak of $550,000.”
May 24, 2018
Interest rates reach 7 year high
“Home sales are slowing, spurring debate about whether the culprit is rising mortgage rates or low housing supplies,” queries this article in USA Today. In San Diego my unscientific, seat of the pants guess is that the market is peaking in some areas so prices are stabilizing and properties remaining on the market longer. However, despite attention grabbing headlines, we are a long way from a bubble.
May 10, 2018
Solar panels mandated on new homes
“The California Energy Commission (CEC) passed a first-in-the nation rule Wednesday, mandating all new homes constructed in the state be equipped with solar panels,” reports the San Diego Union-Tribune.
May 7, 2018
U.S. buyer confidence at all time high
CNBC reports, “Supply is tight, prices are soaring and mortgage rates are rising. That shouldn’t exactly add up to a happy housing market, and yet, it does. Consumer confidence in housing jumped to its highest level on record in April, according to a monthly sentiment index from Fannie Mae.” In my 40+ years selling residential real estate this has always happened. Interest rates go up and people think they will be priced out of the market so they start buying. There is such a low supply of homes to sell now that prices are being driven up faster and even higher.
April 30, 2018
U.S. Pending home sales up slightly
“Signed contracts to purchase existing home rose just 0.4 percent in March compared to February, according to a monthly pending home sales index from the National Association of Realtors. February’s reading was revised down,” according to CNBC’s Diana Olick. Lack of inventory and rising interest rates were noted as reasons for the smaller increase.
April 25, 2018
County 7th highest price increase in U.S.
“The region’s home price increased by 7.6 percent in a year, said the S&P CoreLogic Case-Shiller Indices. Seattle had the biggest increase in a year at 12.7 percent,” according to the S&P CoreLogic Case-Shiller Index and reported in the San Diego Union-Tribune.
April 24, 2018
Values jumped 6.3% across U.S.
CNBC‘s Dianna Olick reports, “Home values nationally jumped 6.3 percent in February compared with a year ago, according the S&P CoreLogic Case-Shiller Home Price Index.”
New median price record in county
“The median for a resale single-family home hit $608,750, a new peak, in March with 2,126 sales. Resale condos were at a median of $418,000 with 1,038 sales, and down from a peak of $425,000 reached in February. Newly built homes were a median of $619,500 with 365 sales, down from a peak of $792,250,” reports Phillip Molnar of the San Diego Union-Tribune about last month’s CoreLogic data.
April 11, 2018
How buying advice to ignore…
REALTOR.com article discusses common misconceptions home buyers can have concerning how to choose a property to buy. However, in this market with such a dramatic shortage of inventory buyers don’t have many options when choosing a property to purchase.
April 9, 2018
Prop 13 target of Sacramento
“Long discussed among liberal and Democratic activists, the proposed initiative would redefine Proposition 13’s limits on property taxes to focus mostly on homeowners. Commercially owned properties would be assessed at market values — a change the group believes could generate as much as $11 billion a year for local services and schools.” I’ll let you draw your own conclusions about this article in the San Diego Union-Tribune.
April 6, 2018
San Diego rents set record
“The average rent in San Diego County hit a record $1,887 a month in March, increasing 8 percent in a year, said a new report released this week,” reports Phillip Molnar in the San Diego Union-Tribune. That amount of monthly payment will buy approximately $425,000 in mortgage payments for a fully amortized 30 year loan at 5.25%.
April 5, 2018
Home buyers offering sight unseen
CNBC article states, “Already, house hunters are waiving inspections, making offers without even seeing homes and bidding well above asking price.” If you’re a seller in a market like this you need to be very careful accepting an offer from a buyer who hasn’t seen your property.
March 29, 2018
Remember subprime mortgages and the real estate depression in 2007? Well, guess what, the subprime mortgage bonds that finance these loans are back – again. CNBC reports that, “Home loans to people with scratches and dents in their credit histories dwindled to almost nothing in the aftermath of the crisis, as litigation-weary lenders retreated to patch up their balance sheets. But over the past couple of years a group of specialist firms has begun to bring the loans back, navigating a dense web of new rules drawn up to protect borrowers and investors in the $9.3tn US home-loan market.”
March 21, 2018
Home prices up 8.3% in February
“The market continued to be dominated by resale single-family homes, making up 1,630 sales in February. The median price reached $580,000, up 8.3 percent in a year,” according CoreLogic and reported in the San Diego Union-Tribune. “Sales continue to remain tight as there are fewer homes for sale than previous years. In February, there were 4,636 homes listed for sale in February, up by 221 homes from the same time last year, said the Greater San Diego Association of Realtors. But that is far off an an average 5,040 homes per sale each month in 2017; 5,909 in 2016; and 6,610 in 2015.”
March 20, 2018
San Diego top investment market
“San Diego has become a more favorable place for real estate investing among big money players across North and South America,” reports the San Diego Union-Tribune. “Real estate investing means pumping money into a local economy from construction of a new building or, what is more likely from investors surveyed, buying an old structure and fixing it up.”
March 16, 2018
Less new housing built in 2017
“Cities and the county issued 4 percent fewer residential building permits in 2017 than the previous year, said the Real Estate Research Council of Southern California in a report released this week.” writes Pillip Molnar in the San Diego Union-Tribune.
March 11, 2018
2,000 new apartments in San Diego
San Diego Union-Tribune story by Phillip Molnar reports on new San Diego County apartment construction, mostly in downtown’s East Village and Little Italy. For me, the most interesting part of the article deals with the decision by developers to build apartments and not condominiums because of their fear of construction defect litigation after the condo project is sold out. There literally are attorneys who mass mail new condominium project owners soliciting construction defect lawsuits.
March 9, 2018
This is great news!
“Getting a mortgage from a community bank or credit union could become easier, under a provision included in a banking regulatory bill under consideration in the Senate,” reports Sarah O’Brien of CNBC.
Home loan costs could go up
“Fannie Mae (FNMA) and Freddie Mac (FMCC) , two government-sponsored enterprises that finance more than 45% of U.S. mortgages, could raise monthly mortgage payments by $400 based on new rules being discussed in Congress.,” according to an article in TheStreet.
March 7, 2018
Closed Sale – Escondido 1.3 acre lot
Lake Hodges view 1.3 acre lot. Gentle slope, private road, easy access to major shopping and freeways. Closed for $265,000.00 by Pete Saxon Realty.
Lake Hodges view 1.3 acre lot. Gentle slope, private road, easy access to major shopping and freeways. Closed for $265,000.00 by Pete Saxon Realty.