Last year at this time we were in shock at the thought of what a Trump administration might mean for our real estate market – there was no telling what was going to happen!
It’s not a stretch to say that next year should be easier to predict!
Factors to consider for your 2018 predictions:
Trump will name new leaders of the CFPB and the Fed, and both people should push for easier money. I don’t think we’ll be seeing no-doc mortgages any time soon, but the new regimes could strive for more things like higher production of the low-down-payment Fannie/Freddie loans (not that the lower-end markets need much stimulus!).
Goldman Sachs said yesterday that they expect the Fed to raise rates four times next year. But the recent Fed moves haven’t resulted in a corresponding increase in mortgage rates – so we might get into the mid-4% range, which isn’t the end of the world. The buyers – or sellers – can always buy down the rate if needed.
The tax reform will get watered down and passed when no one is looking, and buyers will forget about it quickly because it’s so hard to calculate the actual impact. Rising rates are much easier to figure.
The overall inventory of homes for sale probably won’t change much. There might be occasional spurts of listings here and there, but there is still no place for seniors to go that’s better than where they are today. We should have the same or slightly more estate sales, but no significant increase, and with the taxation so heavy on long-time owners, they and their families will just wait until they croak.
More affluent people from higher-end markets who are thinking about retiring will see coastal San Diego as a terrific option.
Our recent real estate boom since 2009 has caused sellers and agents to be extremely optimistic. Yesterday an agent complained about getting ‘lowballed’ when she got an offer that was $25,000 under the bottom of their range a week before Thanksgiving. It will take months – or years – before anyone notices, let alone reacts, to a major shift in buyer trends.
We are numb to the news. Mass killings are a regular event, sexual deviants are a dime a dozen, and it’s hard to imagine that Trump could say anything that would be a shock now. The news might be what’s causing buyers to want to hurry up and hunker down!
Expect more of what we’ve had recently – low inventory, and higher prices. But I do think we are way overdue for sales to decline – I already guessed 5% fewer NSDCC sales in 2018, and it could be worse.
Last week: We should see a bit of a surge this week before more people shut it down for the holidays!
We did see a bump in new pendings this week – there were 46 new listings, and 60 new pendings! The week before Thanksgiving and the last week of the year typically have more new pendings than listings – buyers are always looking!
Last week, Facebook announced that U.S. users are able to search for housing rentals on its Marketplace platform. Like Craigslist, Facebook Marketplace—which launched in 2016—lets users buy and sell items nearby.
Now, not only can you sell an old couch, but also you can search for apartments and houses based on things like location, price, size, the number of bedrooms, and even if an apartment is animal friendly.
The housing section will include “hundreds of thousands of rentals” that go beyond the individual listings previously posted by users. Facebook has partnered with sources like Apartment List and Zumper to pull in listings. Other people—think brokers, agents, and property managers—can also post properties available for rent. Landlords can add 360-degree photos to each listing so that interested renters can take a virtual tour.
“Marketplace is a popular place for people to look for a home to rent,” said Facebook’s Bowen Pan. “Now that we’re adding listings from Apartment List and Zumper, people can search even more options in the U.S. to find a place to call home. First with vehicles and now with housing rentals, we’re partnering with businesses to bring more ease and convenience for consumers.”
Facebook’s latest announcement is part of a larger plan to keep users in the app longer and to function as a one-stop commerce platform for food, shopping, and even job hunts. Recently, Facebook upgraded Marketplace to include used car ads, and the continued expansion is in direct competition to longtime sites like Craigslist.
Thumb through any home decor magazine, and you’ll see a master bathroom with a soaker or shower as the showpiece. Ta-da!
Homeowners, it turns out, are splurging to scrub up, according to the recently released U.S. Houzz Bathroom Trends Study. Ninety-one percent of homeowners in the study added a spacious shower to their master bathroom (after tearing out the tub), and many added on deluxe features, like a body sprayer or rainfall showerhead, for an improved, spa-like space.
The average cost for a large-scale remodel of a master bath (sized over 100 square feet) was $21,000, shows the study. Master bath renovations cost more in pricey markets, however. In San Francisco, Calif., for example, a major remodel averages $34,100.
Accompanying a luxury shower is a soothing gray and white color palette, according to the study. Nineteen percent of homeowners installed white countertops in the master bath, and 40 percent painted its walls white. Fourteen percent added gray cabinets, as well, to complete the tone-on-tone look. The majority of homeowners (90 percent) changed the overall style of the room, some to contemporary (25 percent), some to transitional (17 percent), and some, still, to modern (15 percent).
Statement showers; lose the tub : Showers are the top feature to splurge on during a master bathroom renovation (42% of renovating homeowners). Of those making master shower updates (81%), more than two-thirds increase its size. Many homeowners remove their master bathtub (27%) to make room for a larger shower (91%).
Aging in place drives spend: Homeowners 55 years old or older spend nearly twice as much as those under 35 on renovations of master bathrooms over 100 square feet ($22,800 vs. $12,500, respectively). Older homeowners are significantly more likely to integrate accessibility features, as three in five have no plans to move in the next 10 years.
Millenials crave more space: One quarter of homeowners opt to increase their master bathrooms. Many of those who are keeping the bathroom size as is find it too small for their needs (30%). Millennial homeowners (ages 25 to 34) are more likely to increase their master bathrooms than are other homeowners and are more likely to be unhappy about the size when not changing it.
San Fransiscians spend the most on remodels: Among the top 20 U.S. metro areas, homeowners in San Francisco spend the most on a master bathroom remodel, averaging $34,100 for a major remodel of a larger master bathroom (over 100 square feet), compared with $21,000 nationally. Overall, costs vary significantly by scope of remodel, size of master bathroom and regions.
This company surveys real estate agents every month around the country – here is the October report from San Diego realtors:
Low inventory is the constant theme, but there are 5,157, houses and condos for sale in the county currently. Maybe we just need to get better at correcting the reasons why those aren’t selling, and boom, we’d have instant inventory!
Price-wise, I would disagree with the 16.7 time-to-sell index. Prices are at least as good as they were in May, and instead of 3-6 buyers for every house, we’re down to one or two. You only need one!
When is the best time to sell? When everyone else isn’t!
I have followed Jim’s BubbleInfo blog from the early days of the bubble when “real estate could only go up in value” and I knew him to be a straight shooter who would not sugar coat properties nor gloss over their faults.
So when we decided to move back to California after 7 years in the more “
Jim met with us prior to listing – provided guidance on preparation, detailed information and stats regarding local market conditions. He was invaluable for providing contacts for repair and improvements that would provide return on investment. Our combined efforts, strategy and his attentativeness more “
Jim and Donna Klinge are an impressive team. They work extremely well together and back each other up, as well as their clients, along every step of the way. Their expert guidance made a tremendous difference in the experience we had, both buying a new home and selling our previous home of 40 more “
Since Zillow only allows me to write 1 review per real estate transaction, per team of agents we worked with, this is going to be a super long review.Review on Jim Klinge:
Jim Klinge is the quintessential real estate agent, the “broker’s, broker” of real estate agents. My husband and I reached more “
by Louie and Tim Cook
Jim and Donna are the BEST of the BEST! Their knowledge, professionalism, work ethic, and devotion to their trade are unrivaled. It was refreshing to have worked with a pair of professionals who truly understand the meaning of customer service, a lost art in our opinion. Despite living over 3,000 miles away on the opposite coast, Jim and Donna were with us every step of more “
Jim found me a multi family property that we purchased as an investment (Please see my review of Donna Klinge for details on how it went). But the bottom line is this: I never would have found this property, which cash flows right out of the gate, if it weren’t for Jim pointing me toward that house. It just was not on my radar, even though I consider myself a savvy real estate troll. Jim is giving of his time, and his intelligence. And he is also transparent and truthful. And I think he is funny, which is helpful in stressful situations like RE transactions. Jim and Donna have earned every last penny they made from our deal — and in fact they deserve more. And that is why I will use them for my RE transactions the rest of my life. Thank you, Jim and Donna! more “
I can’t say enough about Jim and Donna. Jim got a great price for us and negotiated well. Donna walked us through escrow, handling vendors, and negotiating everything we asked for in the request for repairs. They are know exactly what they are doing and I’ve already recommended them to two other people. more “
I followed Jim’s blog for several years and decided to contact him (along with several other realtors) when an out-of-state work relocation required me to sell my home in San Marcos, Ca. At our initially meeting, Jim spent a significant amount of time discussing pricing options, strategy, as well… more “
Honesty. Integrity. Professionalism. Dedication. Commitment. Jim and Donna Klinge hold these attributes in abundance. They have acted as both our buyer agent and our seller agent delivering highly relevant insight into local market conditions, spot-on advice to maximize the home’s value, and unparalleled management of the transaction process… more “
I cannot imagine a better experience! Jim was our broker when my husband and I bought our first house. Jim never pressured us or glossed over anything. He was patient, knowledgeable, and helped us buy our dream home. His office was detail-oriented, always responsive and we closed in 30 days! The excellent service didn’t end when we bought our house, either, the Klinges have given us excellent and fast referrals along the way. We feel privileged to have worked with such a consummate professional and appreciate how rare this level of skill is. Jim is simply the best in the field. more “
Jim and his team are top flight. He knows the market better than anyone, and his team ensures the deal goes through without a hitch. There’s always something at the last minute, but you’d never know it with Jim and his crew. I’ve bought and sold houses with Jim as my agent over the years, and I wouldn’t use anyone else. Save yourself the headaches and potential costly mistakes… more “
Buying a house is one of the most emotional,exciting, and sometimes confusing milestones you’ll reach for in your life! Being a buyer in this market can make it even more interesting! My husband and I have been looking to buy for a year, and when the time came we wanted a realtor team that would be on our team! Being that I’m a business woman and was 7 months pregnant, I wanted, NEEDED, communication, dependability, and consistency! The Klinges went so far above and beyond … more “
Jim was recommended to me when I bought my first house here in the US five years ago. He and Donna explained the whole process and it was a great experience to work with them. Not surprisingly, when my company asked me to relocate my first choice was to work with them again… more “
I have followed Jim’s real estate blog for years and by the time I got ready to sell my townhouse I felt I knew him both personally and professionally. At our first meeting he was prepared with recent comps and listings for the area… more “
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