After years of posting similar stories about rising prices due to low inventory and low interest rates it may be that the market has reached its peak or may just be taking a pause. In San Diego the median sales price dropped almost $20,000 from June of 2016. I’m seeing price reductions on the MLS for the first time in a while. It will be a month or two before we know if dropping prices is a trend. My guess is that it’s a leveling off and a real estate bubble bursting.
Lots of potential in this three bedroom, two bath, 1066 sq. ft. twin home. Walk to elementary school. Close to shopping, dining and entertainment. Now offered for $499,000 by Pete Saxon Realty
Phillip Molnar of the San Diego Union-Tribune reports on CoreLogic data showing San Diego County home prices have increased 4.4% to $529,750 over October of last year. However, median prices have dropped below the all time high of $545,000 reached in June of this year.
November 28, 2017
San Diego third only to Seattle and Vegas
The S&P Case-Shiller 20 City Indices ranked San Diego County third in the country for price appreciation in September 2017 reports the San Diego Union-Tribune. San Diego home prices have risen 8.2% in a year.
Less expensive homes appreciate faster
There’s a well known cliche in real estate, “Buy the smallest, least expensive home in the best neighborhood” if you want the most appreciation. Diana Olick of CNBC writes about how lower priced homes are appreciating faster than their more expensive neighbors.
“The downward trend of home ownership began with the housing bubble burst and subsequent recession starting in late 2007, which resulted in as many as 10 million families losing their homes to foreclosure nationwide, according to the National Center for Policy Analysis. Not only were homeowners unable to pay off existing mortgages, but younger people entering the workforce for the first time were unable to qualify for mortgages, as lenders had to restrict lending practices dramatically,” according to CNBC.
June 29, 2017
County prices outpace U.S. and CA
“Low mortgage rates and lack of homes for sale throughout the nation are continuing to push prices up, wrote David Blitzer, managing chairman of the Index Committee at S&P Dow Jones Indices, in the monthly report.” The San Diego Union-Tribune reports that San Diego County home prices increased 6.6% while prices increased 5.5% nationwide.
June 28, 2017
U.S. pending sales off for third month
Lack of inventory in the affordable price ranges across the country is still having a negative impact on pending home sales according to the National Association of REALTORS. “Pending home sales in the South declined 1.2 percent to an index of 123.4 in May and are now 1.4 percent below last May. The index in the West subsided 1.3 percent in May to 98.6, and is now 4.5 percent below a year ago. ”
California pending sales off for fifth month
” California pending home sales fell for the fifth consecutive month, suggesting the state’s housing market may underperform over the next few months, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported. Pending sales in San Diego, San Bernardino, and Los Angeles counties declined from last May, but those counties had drops of less than 5 percent.” It’s all about inventory. How many For Sale signs have you noticed in your neighborhood?
Mortgage application drop 6%
Diana Olick of CNBC reports that, “Mortgage rates have been sitting at a six-month low for the past month, barely moving, but mortgage demand is still shrinking. Total application volume fell 6.2 percent last week, compared to the previous week. The Mortgage Bankers Association’s seasonally adjusted application index is now down 17 percent compared to the same week one year ago.” It’s not so much that buyers aren’t ready to buy, there’s just no inventory.”
June 21, 2017
County median price hits $530,000
“The San Diego County median home price hit $530,000 in May, breaking the nominal record set last month and increasing 8.2 percent in a year, real estate tracker CoreLogic reported,” reports the San Diego Union-Tribune.
June 14, 2017
1% down payment mortgage
So, here we go again. The San Diego Union-Tribune reports on a new mortgage offering by Guild Mortgage that allows for a 1% down payment. These very highly leveraged loans can be a problem when real estate values slip just a little bit creating “underwater” loans.
The Washington Post reports that mortgage rates have, “Already hit rock bottom this year. In the past month alone, 30-year fixed-rate mortgages have hovered around 3.7 percent, nearly a three-year low. Britain’s vote to leave the European Union is expected to drive rates even lower.”
San Diego #5 on REALTOR.COM
“Realtor.com®’s research team identified the hottest markets by factoring in which ones had the most views per listing on its website and saw the quickest inventory movement. In these markets, homes are selling 20 to 38 days faster than the rest of the U.S.,” reports REALTORMag.
“San Diego County’s median home price increased 6.3 percent in the last 12 months, while Los Angeles and Orange counties increased 5.9 percent,” according to the San Diego Union-Tribune article reporting on the S&P/Case-Shiller Home Price Index.
June 28, 2016
U.S. home prices continue steady upswing
“The S&P/Case-Shiller Home Price Index, covering the entire nation, rose 5% in the 12 months ended in April, slightly less than a 5.1% increase in March.,” reports The Wall Street Journal.
June 25, 2016
Brexit and U.S. housing
Forbes online article speculates on the impact of Great Britain’s leaving the European Union on U.S. housing. I’ve been a real estate broker in San Diego since 1976 so I’ve been through many of these so called crisis. This one hasn’t even happened yet. Real estate is local, not international, so any impact on the San Diego housing market will depend on economic condition here, not in Europe.
June 24, 2016
Brexit and mortgage rates
Washington Post article quotes several sources on the impact the Brexit vote will have on U.S. mortgage rates. Most predict mortgage rates could fall to all-time lows in the short term but will begin to stabilize and rise over time.
June 23, 2016
County median price now $490,000
San Diego Union-Tribune reports that CoreLogic data shows San Diego County median home prices are at their highest for 2016. Also, the number of sales was up, “Even as experts pointed to a lack of inventory as a cause of decreased sales in early 2016.”
County ZIPS above price peak
San Diego Union-Tribune slide show displaying the San Diego County zip codes that have exceeded their pre-recession price peaks.
June 22, 2016
U.S. existing home sales highest in 9 years
REUTERS reports on National Association of REALTORS statistics indicating that, “Existing home sales gained 1.8 percent to an annual rate of 5.53 million units last month, the highest level since February 2007.”
June 20, 2016
New Listing – Scripps Ranch
Upgraded three bedroom Scripps Ranch single family home. Newer appliances, carpeting and paint. Offered by Pete Saxon Realty in a range of $899,000.00 to $849,000.00.
“It takes nearly four years to get to the point where it makes more sense to buy than rent a home in San Diego County, the longest time of any metro area in the nation, said a Zillow study released Tuesday,” reported the San Diego Union-Tribune.
June 13, 2016
10% of renters planning to purchase
“Nearly half of renters — 48 percent — plan to buy a home in the future, with 10 percent saying that they plan to buy within a year, says CAR’s “2016 Renter Survey,” reports Hollywood Patch. Qualifying for a loan and down payment funds remain an obstacle for first time buyers.
June 11, 2016
Pending Sale – Escondido
Aurora Hills four bedroom, four and one-half bath executive home with 4,038 sq.ft. on over one-half acre corner lot. Offered for $799,900 by Pete Saxon Realty
June 6, 2016
New Listing – Poway Executive Home
Custom home overlooking the Maderas Golf Course, best view in Heritage. Downstairs master suite, formal office, wine closet, 4-car garage, very private estate. New custom built garage cabinets, full media center in family room, Marble flooring, 20 ft ceilings in master bedroom, family room and living room. Custom faux painting throughout. Beautiful double circular staircase entry. All Viking appliances, extensive built-ins throughout, Anderson windows. Sunny laundry room. Sweeping sunset views.
Cox San Diego Connections produced a video about the City of Poway which is where I live and do business. Interviews with the mayor, city manager, chamber of commerce president and school board superintendent are featured.
Forbes reports on National Association of REALTORS pending home sales statistics for February showing that pending home sales across the country were at their highest level since June 2013. “Pending sales showed solid gains last month, driven by a steadily-improving labor market, mortgage rates hovering around 4% and the likelihood of more renters looking to hedge against increasing rents,” said Lawrence Yun, NAR’s chief economist.
March 24, 2015
Existing home sales up 1.2%
The National Association of REALTORS statistics indicate that existing home sales were up in February. The median price was $202,500 which was an increase of 7.5% over February 2014.
New home sales up 7.8%
USAToday reports that new home sales reached a 7 year high in February and the sales figures for January were revised up as well. The last time new home sales had back to back months with total sales over 500,000 was 2008.
March 23, 2015
U.S. median home price up 7.5%
MarketWatch reports that the medial sales price for home in the U.S. was $202,600 in February, an increase of 7.5% over February 2014. Lawrence Yun, chief economist of the National Association of Realtors suggests that this increase is difficult for potential home buyers as wages are only increasing 2% year over year.
March 17, 2015
Homes appreciate 7.3% in San Diego
San Diego County home values appreciated to a median price of $440,000 as reported by the San Diego Union-Tribune. Low inventory of homes for sale and record low interest rates are helping to increase the value of San Diego County housing.
California property too expensive so legislature proposes raising property taxes
San Diego Union-Tribune story reports that the California legislature is proposing a fee on property transfers that would pay for affordable housing for those who can’t afford to buy a home. This, of course, will further raise the cost of residential real estate.
March 13, 2015
Carlsbad Listing-Sold In 1 Day
Bressi Ranch four bedroom, three and one-half bath with 2,693 sq.ft. Offered for $829,000.00. Details here.
March 3, 20015
Pending Sale Rancho Bernardo
Seven Oaks three bedroom, two bath with 1,600 sq.ft. Incredible 180 degree views.
San Diego ranks as the fifth richest city in the U.S,. according to USAToday, ahead of Boston, New York and Los Angeles.
January 30, 2015
REALTORS report home sales rebound
The National Association of REALTORS reported that existing home sales were up 2.4% in December but for all of 2014 there was a 3.1% decline compared to 2013.
January 29, 2015
New water-heater regulations
The U.S. Department of Energy’s new water-heater regulations could be costly for home-owners according to a story in Poway Patch. The new water-heaters will be larger and may require some home-owners to modify their home’s structure around the area where the water-heater is located.
6 Ways to keep energy costs down
Here are six easy ways to manage your home energy use according to homecarebuzz.com.
January 28, 2015
Local price appreciation up in November
Home price appreciation rose from 4.7% to 4.9% from November 2013 to November 2014 according the the S&P/Case-Shiller Home Price Index and reported in the San Diego Union-Tribune.
January 27, 2015
U.S. price growth slows in November
Forbes.com reports on the S&P/Case-Shiller National House Price Index which shows that U.S. single-family home price appreciation slowed for the 11th month in a row to 4.2% in November, down from 4.4% in October. Compared to the rate of return I’m getting on savings, CD’s and the volatility of the stock market I’ll take 4.2% per month appreciation on my real estate all day long.
That’s the term CNNMoney gives to people who lost their homes during the Great Recession. This group of 500,000 may be poised to return to the home buying market.
January 23, 2015
Resales slow in 2014 across U.S.
The National Association of REALTORS reports that U.S. home resales fell for the year for the first time since 2010, according to a story on Fox Business. The story reports that that only 29% of home buyers in December were first time home buyers, well below the percent needed to spur sales. However, rents keep going up and up so potential first time buyers will eventually decide that purchasing a property is actually less expensive that continuing to rent someone else’s property.
January 21, 2015
Foreclosures down 31% in 2014
San Diego Union-Tribune reports on DataQuick’s monthly statistics showing San Diego County foreclosures in 2014 were 31% below the level in 2013. The number of foreclosures was the lowest since 2006.
January 15, 2015
San Diego housing values up 4.8%
The San Diego-Union Tribune reports on CoreLogic DataQuick’s statistics showing that both home prices and and number of sales were up in December of 2014 when compared to December 2013. The median price for a home sold in December was $440,000 while 3,920 homes closed escrow.
January 7, 2015
Carmel Valley four bedroom, two bath with 2,300 sq.ft. On the market nine days and sold for $911,000.
January 5, 2015
Escondido one bedroom, one bath condo. Sold in three days, all cash for $105,000.
I offer several listing plans for home sellers including a Flat Fee/Open Listing. In the last 30 days I have closed three transactions, each using a different listing plan. Please visit the Home Sellers page for listing plan details.
Lancashire Way, Rancho Bernardo
This seller used the Open Listing Plus Plan with Broker Assistance. The property sold for $745,000 and the seller saved over $16,000 in commission expense.
1811 E. Grand Ave. #159, Escondido
This property owner choose the Full Service Listing Plan and paid a 5% commission. He choose this plan due to his work schedule and family obligations. The property sold for $105,000 in three days.
5706 Willowmere, Carmel Valley
An Open Listing Plus Plan was used by this home owner. The home was on the market for nine days and sold for $911,000. The seller saved over $22,000 in commission expense.