TAG | San Diego Real Estate Update

September 2018: San Diego Real Estate Update

Mind the Gap [in Affordability!]

We’ve been watching all market factors very closely – with all factors in consideration, we determine there to be a plateau in our market today.  Watch quick video here:

The main reason is e assess that is really the affordability aspect, in particular the national income level. Over the last year, household income only rose about 2.8% annually. Now we this we’ve had rising housing prices, interest rates up AND building costs increase.. these rising costs on a national level have far outpaced our income averages. What does this mean?

Well this is what many refer to as the ‘gap’ in affordability. Now here we have hit that ceiling on national average levels of affordability. 

 

Here’s the stats we are looking at:

Buyer Advice:

Finally, there are options!! Actually a great time to be a buyer.  Remember last year, there was so much competition you LITERALLY had no options.. look at the market today, you appreciate how much more opportunity awaits for buyers today!

Start your search Today!

Seller Advice:

For sellers, what it comes down to is pricing to the current market, preparing the property and marketing properly in order to be that ‘next-to-sell’ home. There are still homes selling fast & for record breaking prices – does your home have what it takes?

Ask for your FREE consultation today!

 

 

Be Sociable, Share!

    , , , ,

    2018: Happy, Healthy… Homeowners!

     

    As we’re reaching those final dog days of summer here, while the weather reports heat waves and perfect beach days..our housing market has actually shifted into cooldown already. The rumors are true, folks – the shift has happened! Remember, this is a GOOD thing.  For all those crying, “housing bubble!” we see you.. That was soooo 2007, stop it. We have actually entered into a “healthy” market – economists agree, our market conditions have set the stage for stability moving forward.

    What we’re seeing in our market now is about a 2.2 month supply of homes, this is extremely low compared to the rest of the US; however, we expect for that number to increase to around 3 to 3.5 months here soon. This will allow buyers to take their time and not be forced into jumping into the first property that comes on the market… Finally, right?? If you’re interested in becoming a homeowner and making the American Dream your own, now might be your time to pull the trigger and find your dream home!

    Here’s what we’re seeing now:

    Closed Sales decreased 9.5%. Pending Sales decreased 1.9%. Inventory increased 9.4%. The Median Price was up 6.8% to $657,000 for Detached properties and 6.7% to $432,000 for Attached properties. Days on Market increased 8%.

     

    All-in-all, we are looking at a promising future on the horizon for our local housing market. Consumer spending on home goods and renovations are up, and more people are entering the workforce. Employed people spending money is good for the housing market. Meanwhile, GDP growth was 4.1% in the second quarter, the strongest showing since 2014. Housing starts are down, but that is more reflective of low supply than anything else. With a growing economy, solid lending practices and the potential for improved inventory from new listing and building activity, market balance is more likely than a bubble.

     

    Buyers Advice: 

    Buyers, you are now able to be a little more picky than buyers last year.. so you can be more patient, take your time for the right home to come along and really find that “dream home” you’ve been waiting for. Now, we’re not talking major price cuts here… as we said, it’s a healthy market not a housing crash – San Diego Is one of the most desirable places to live in America, so keep your expectations reasonable. Now’s the time to figure out what you really want and hire that Realtor who will work with you, pound the pavement and find that dream home! 

    Sellers Advice: ​​​​​​​

    The best advice I can you right now is this: make sure you will be, what I call the ‘Next-to-Sell-Home”. What I mean by that is that you have to win on all fronts when compared to your competition. Your home either has to be in the same or better condition than the rest, at either the same or better price. Certain factors help set up sellers for success, we’d be happy to walk you through the process.

    Find out about our Hands Free Selling System

     

     

     

    Be Sociable, Share!

      , , , , , , , , ,

      The Secret’s in the Sale

      We certainly have some interesting times seen in our local markets here in San Diego County. What we’re seeing is an odd disconnect between what’s recorded in our monthly housing stat report and what we real estate professionals are seeing on the ground, working day-to-day in our local market. We dove deep into this month’s market report to find the secret to this mystery – here’s what we found…

      First statistic I’d like to bring attention to is our closed sales this month is DOWN 15% compared to last year .. that’s a significant drop! Now, sales are down.. and the number of homes for sale is actually UP! So we have less homes closed, but more inventory. Now usually this results in prices going down.. however, instead we actually have a 6.3% increase in value (home prices) in closed sales from this month.

      Scratching your head over that one? Yup, we did too.. but we dove deep and here’s what we found:

      We see that yes, we have more inventory, however we’re seeing more homes coming on market that aren’t showing well and are overpriced .. So what we have are these homeowners who see the housing market doing great, so they say, “hey, market’s great – let’s go ahead and list our property.. let’s sell our home”.. But they’re not taking the proper steps to sell their homes for the best results – their homes aren’t being prepped for market properly. These listings aren’t showing well. Some homes aren’t priced at fair market value either – they’re overpriced, they’re not showing well… so naturally, we’re seeing this population of listings sit longer on market.

      Then in contrast, we’re seeing the sellers ( “smart sellers” ) who are taking into account the condition of their property, making it look good …they’re hiring professional realtors to help prep their homes properly for market, having them come in and help prep, PRICE and market their home properly. Sure enough, these sellers are having more success with their homes on market than these other poorly prepped, overpriced homes – more closings & quicker sales with these “smart seller” listings. So despite more inventory, not all listings are equal.. however those “smartly” listed are selling with more success & faster, resulting in our increase in home prices seen still in San Diego county.

      Here’s the stats from this month:

      Buyers Advice: 

      So on the BUY side, BE CAREFUL. Make sure you do your proper research!
      Even if there’s no comps in the neighborhood, make sure you have your realtor to run comps for those homes you’re interested in. You want to make sure these homes are actually priced at fair market value, and seeing as several homes on market today are overpriced, make sure your realtor helps determine if in fact you are getting a fair price when you buy your new home.

      Contact us today!

      Sellers Advice: ​​​​​​​

      On the SELL side, take the time to meet with your realtor – make sure your listing agent really works to sell your home properly. Have them really guide you through this process – have them tell you what you need to do for staging, painting, PRICE..and then the proper marketing plan for your home sale. Note: we ARE still seeing a high demand for these types homes on market – sellers: if you prepare your home for market, you WILL be able to sell with great success! Maybe sell for more than your neighbor did, or get a great listing agent and you could even max out what your neighborhood can sell for.. the secret’s in the sale!

      [ Find out about our Hands Free Selling System… ]

      We're sorry, but there’s nothing to display here; MLS data service is not activated for this account.

      Be Sociable, Share!

        , , , , , , , , ,

        April 2018  –  San Diego Real Estate Update 

        Can it be true?? Ladies and Gentlemen, no fools’ jokes went into the making of this statement… let it be known: there is finally a significant shift in our San Diego Housing Market! We are just seeing significant evidence of a lasting change to our local market. Basically, what had been several long discouraging months with severe inventory droughts in a scalding HOT sellers’ market has simmered down to what I would say to be a more stable market.  So small shift statistically, but what a significant impact on the market!  

        Now, this news may be a shocking surprise to you – but don’t be jumping to any sky-is-falling conclusions about this now.. we are seeing only slight shifts here, nothing to indicate we are at any risk of a market collapse, I assure you! What we are seeing is a slight, and long overdue increase in our market inventory finally, though oddly enough also saw slight dip in buyer demand over last few weeks. This may seem odd, but considering all the many other factors in play here like tax season/reforms, stock market, school season, newly increased interest rates, economic stability concerns, or just some awful cocktail of them all gives just cause for buyer numbers to take slight dip momentarily here, as shown below.

        However we can expect buyer demand recover soon as this recent market shift becomes more evident  – this surge of new inventory brings long-overdue relief onto our buyer market.  More inventory means buyers will finally have more options when out looking for their new dream home (and slight decline in present buyer activity is GREAT news for active buyers now! – More options, less competition, better deals!) For sellers, this shift will mean the end of price gauging and return to more strategic home sale practices.

        Now you might be asking yourself, “Why is this not a sign of a correction, or market crash???” Well, when the market crashed in 2007 people were stuck with these adjustable rate mortgages which when adjusted, sent their payment through the roof, we don’t have that anymore. Rental rates were extremely low in 2007 so it was cheaper to go rent than to own, we don’t have that anymore. Our population has grown yet we have only managed to build around 22% of the housing that is needed to support those new members of our community. Therefore these signs all point to high demand for housing here.

        All in all, the market is going to remain very strong for the foreseeable future, however expect to see more inventory and more options for home buyers.

        Here are some stats to back that up:  

         

        Closed Sales are down 15.9%,. Pending Sales are down 3.1%. The Median Sales Price was up 10.4% to $635k for Detached homes and 5.7% to $412k for Attached homes.
         
        Buyers Advice: 
         
        Alright, it’s time to get off that fence and buy now before interest rates go up even more – the Fed has come out and said they plan to do 2 more increases to interest rates within this year. You will definitely want to get into your new home before that happens! Also, we are finally seeing more homes hit the market, this means you can give yourself more time to be picky and make sure the home has everything you’re looking for! 
        See all the new inventory for yourself (Click Here)
         
         
        Sellers Advice: ​​​​​​​
         
        With competition to sale higher than we have seen in last few years, you will really want to make sure your home stands out from all the rest! To do this best, you will need to make sure the home is suitably decluttered and arranged so it can be shown well, make sure the property photos are amazing & flawless, always review all marketing to make sure it is advertised correctly, and of course, make sure it’s priced right! If this sounds like a lot to do, you’re not alone & that’s why our  team created this specialty selling system that provides sellers with full service, start to finish so we when you list with us, we’ll do the rest, cut out the stress & always deliver the best! 
        Ask us about our  (Hands Free Selling System)
         
         

        We're sorry, but there’s nothing to display here; MLS data service is not activated for this account.

         

         

         

        Be Sociable, Share!

          , , , , , , , , , ,

          New Year, New Tax Reforms!

           
           
          As we near the end of this year and look on to 2018, we consider what the new year has in store for San Diego real estate… with a close ear to all that stirs up on Capitol Hill.
           
          This past year experienced one of the more consistent and predictable markets of this last decade, however as we watch this new tax bill come closer to being passed, we could see a significant impact shift our local housing market. Although the particulars to this bill are still being finalized, what we see as of now concerns the Capital Gains allowance. The new tax reform is looking to adjust the homeowner requirements from 2 out of 5 years to living in their home the full 5 out of 5 years in order to be eligible – which I can predict to have affective impacts on homeowners choosing to stay where they are vs. moving, thus increasing an already extreme shortage to our housing supply. If we see our housing inventory get even tighter in this year to come, we could see another 10-15% increase in local housing prices in 2018.
           
          But enough about predictions, here’s the facts from this last month…
          All-in-all, this has been one of the toughest 4th quarters for buyers, and one of the best quarters for sellers that we have seen in a long time.
           
           
          Buyers Advice: 
           
          If you are on the fence about buying a home, you may want to consider hopping off sooner rather than later! Considering this new tax reform and its predictable effect on our local housing market – you would be wise to buy now! Start your housing search here today!
           
           
          Sellers Advice: 
           
          We are seeing inventory levels at an all-time-low across San Diego county. This has caused home values to continue to climb! Your home may be worth significantly more than you think! To see how much your home could sell for in today’s market, find out here!
           
           

          We're sorry, but there’s nothing to display here; MLS data service is not activated for this account.

          Be Sociable, Share!

            , , , , , ,

            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.

             

            We're sorry, but there’s nothing to display here; MLS data service is not activated for this account.

            Be Sociable, Share!

              , , , , , , , ,

              Web Design and Seo Services