July 31, 2017
Here’s why resale inventory is so low
Trulia has an excellent article explaining the low number of homes for sale across the U.S. Two factors on their list and probably the main reasons San Diego’s inventory is so low are new home construction and investor ownership.
July 28, 2017
San Diego home building picking up
San Diego Union-Tribune article discusses San Diego economist Alan Gin’s report on jump in residential building permits. “June’s jump was the largest monthly increase since March 2005, but permits are still 17 percent behind last year’s numbers.” This is good news but several years away from having an effect on housing availability.
Sellers see highest profit in 10 years
CNBC’s Diana Olick reports that across the U.S,, “The average tenure of a homeowner who sold in the second quarter of this year came in at just over eight years,” which helped increase their equity and profit. I remember when the working theory in San Diego was that homes turned over every 5 to 7 years. The article states that people are selling and moving now because they are uncertain if they will be able to find a replacement property since inventory is so low.
San Diego median price now $543,500
Phillip Molnar of the San Diego Union-Tribune reports on CoreLogic’s statistics, “San Diego County’s median home price hit another record in June with an imbalance of supply and demand continuing to push costs up.” Mr. Molnar’s article had a very interesting quote from economist Chris Thornberg, “prices will continue to increase in San Diego because affluent buyers, such as tech workers or researchers, are willing to pay top dollar for scarce housing. ‘Home prices are not set on the basis of average income in a community,’ he said. ‘Home prices are set on the basis of the average buyer. When you have a lack of housing — how most of coastal California does, like San Diego — the people who want to move there are willing to pay.”’
July 24, 2017
U.S. sales off 1.8%
Forbes reports that existing home sales in June slowed by 1.8% when compared to May but were up .7% over a year ago. I just love how the media picks the negative statistic to make their headline.
July 22, 2017
Pending Sale in Encinitas
Encinitas Ranch three bedroom, two and one-half bath with 2,114 sq.ft. on premiere lot. Ocean and golf course views. Offered in a range of $990,000.00 – $1,170,000.00.
July 21, 2017
San Diego housing crisis analyzed
Dan McSwain of the San Diego Union-Tribune analyzes the root causes and their effects on the San Diego regions housing availability and affordability. San Diego has an inventory shortage which is dramatically driving up prices. The cause? “Glaeser and Wharton economist Joseph Gyourko found that zoning and land use controls were the dominant forces driving up housing costs.” Government is the cause.
July 15, 2017
Prop. 13 reform?
San Diego Union-Tribune article discusses, ” real estate leaders are proposing to amend Proposition 13 to give homeowners a tax break when they sell and thus generate more supply and reduce pressure on prices.” The premise of the story is that home owners aren’t selling and “moving up” because of the increased property tax bill they would incur in a more expensive home. I don’t agree. People aren’t selling and moving up because of their sense of insecurity caused by the political activities in Sacramento and Washington. Also, there is no wage growth in San Diego County for first time buyers that creates a “move up” market.
July 9, 2017
Falling inventory across U.S.
“The number of starter homes on the market dropped by 15.6%, while the share of starter homes dropped from 23% to 22.1%,” according to a story on Trulia’s Trends Blog. Without starter homes for first time buyers then there is no “move up” market which traditionally drives healthy real estate markets.