TAG | North County

That’s it… I Need to Set the Record Straight…

We are NOT Facing Another Housing Bubble!!

 

Last week, our team and myself attended the annual National Real Estate Conference downtown where we were fortunate enough to be audience to a multitude of panels comprised of the best-of-the-best in all areas of real estate – many market issues were discussed but the topic brought up by all panelists from builder reps, to city councilmen, to economics professors surrounded this mounting nationwide concern of a potential market bubble.
 
Let’s set the record straight here… experts agree – the issue is not when the bubble will happen, but rather when will this inventory crisis end ?!
 
Let’s compare this year’s numbers to when we did experience the market crash in 2007 –  the calculated scales are currently tilted slightly in favor of buying vs. renting, versus the extreme opposite where 2007 pointed severely in favor of renting as the more affordable option (when considering renting costs vs. the current conventional loan offerings). Also in 2007, we were building in excess with 225,000 homes per year (in California), however despite today’s population having grown by 4 million, we are building under 80,000 homes per year. What shocks me here is how we are growing by nearly 400,000 people each year, yet only building 80,000 new homes..?! Something doesn’t add up here! 
 

Here’s what I’m talking about:

Buyers Advice: 
 
Don’t believe the hype around buying a fixer! Due to San Diego’s high demand for homes, our fixer-upper properties are not selling for that much less than the move-in ready homes. Most of the time, it is actually more affordable to buy a home already remodeled, rather than putting up the capital yourself after purchase. Also, it’s going to be easier for most San Diegans to increase your loan by $50K to buy that move-in ready home, versus a fixer and $70K+ paid out of pocket in order to do a similar remodel.
However, if you are still interested in a fixer, here’s a good place to start:
 
Sellers Advice: 
 
Hire a designer, not a stager! While staging usually does pay for itself and typically helps homes sell much faster, the typical seller in today’s market is still living in the home they wish to sell and it’s a designer they need, not a stager. We like to hire our interior designer to go through the home and create a list of things that should to be changed, all while using the clients furniture already in home to ‘stage’. This saves our clients money while still getting top dollar for their homes!
See what else we offer our sellers: Click Here 
 

  1. 3 beds, 3 baths
    Home size: 2,175 sq ft
    Lot size: 6,098 sqft
  2. 4 beds, 2 baths
    Home size: 1,352 sq ft
    Lot size: 6,599 sqft
  3. 4 beds, 2 baths
    Home size: 1,772 sq ft
    Lot size: 7,840 sqft
  4. 3 beds, 2 baths
    Home size: 1,514 sq ft
    Lot size: 8,712 sqft
  5. 4 beds, 3 baths
    Home size: 1,973 sq ft
  6. 4 beds, 3 baths
    Home size: 1,958 sq ft
  7. 3 beds, 2 baths
    Home size: 1,120 sq ft
    Lot size: 6,098 sqft

See all City of San Diego Real Estate.
(all data current as of 12/17/2017)

Listing information deemed reliable but not guaranteed. Read full disclaimer.

 
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    Is this Price Climb Over Yet??

    For the last two years, we have watched the steady climb of home prices happen across the nation. For us here in San Diego, we have actually been experiencing this rise for almost 7 years now… and shows no sign of slowing down! 

    Just this summer, prices have already made a 6% average increase across the county…that happened in just 2 months?? So after 7 years, you can imagine how significant an impact this has been on some homes!

    The climb is a direct result of the current market’s lack of inventory. We currently hold 26.7% less inventory today than we did a year ago. That means that active home sales today become hosts to lots of multiple offer situations, lots of appraisal issues and LOTS of happy sellers! 

    But we have to wonder, when is this going to slow down??

    My short answer is yes, maybe and no. Summer is coming to an end, and we can expect to see a slight decline in buyer activity during this time..however with this consistent inventory shortage plaguing our current housing market, we can’t be certain whether or not this brief lull in activity will have a leveling impact on the market.  What we need to have happen is for our inventory to increase up to a 3-month supply. This would allow for the market to finally regain balance and prices to level out to a more stable 3% rise per year. While the solution really is that simple in theory, the real world here continues to show no indication of this happening any time soon, therefore our prices will continue to climb with no signs of slowing down.

    Here are some stats to back that up…

    The Median Sales Price is up to 10.7% to $620,000 for Detached homes, and 6.7% to $405,000 for Attached homes. Closed Sales decreased to 8.6%, Pending Sales increased 5.55%, however the largest and most jarring market change is the decrease in inventory down 26.7% from last year – this caused the Days on Market time to decrease down to 12.6%.

    All in all, these indicators point to a strong, healthy market that is not showing signs of slowing down any time soon.

     

    1. 3 beds, 3 baths
      Home size: 2,175 sq ft
      Lot size: 6,098 sqft
    2. 3 beds, 3 baths
      Home size: 1,686 sq ft
    3. 3 beds, 3 baths
      Home size: 1,686 sq ft
    4. 3 beds, 3 baths
      Home size: 1,368 sq ft
    5. 2 beds, 3 baths
      Home size: 1,108 sq ft
      Lot size: 1.31 ac
    6. 2 beds, 2 baths
      Home size: 1,477 sq ft
    7. 2 beds, 2 baths
      Home size: 997 sq ft

    See all City of San Diego Real Estate.
    (all data current as of 12/17/2017)

    Listing information deemed reliable but not guaranteed. Read full disclaimer.

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