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An Insider's Guide to North San Diego County's Coastal Real Estate
Jim Klinge, broker-associate
858-997-3801
klingerealty@gmail.com
Compass
617 Saxony Place, Suite 101
Encinitas, CA 92024
Klinge Realty
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Are you looking for an experienced agent to help you buy or sell a home? Contact Jim the Realtor!

Jim Klinge
Cell/Text: (858) 997-3801
klingerealty@gmail.com
701 Palomar Airport Road, Suite 300
Carlsbad, CA 92011


Journal

Brava Closed

Brava closed yesterday, after a whirlwind of activity – here are the MLS stats:

We received 13 cash offers, and went through five escrows to get one to stick.  Each time one would fall out, I went back to all of the other contenders to give them another chance to buy it.

Buyers would say that they had reviewed what’s needed (new kitchen, 3 bathrooms, windows, flooring, etc.), and were comfortable with the project.

Of the four that cancelled, three dropped out altogether once they did more extensive research.

Only one tied up the property, and then, after a few days, tried to work me down on price.  They are looking for the desperate sellers and agents, and hope to convince you to drop another $20,000+ just get it over with.

It was Mr. T who tried to get me to cave, and he had agreed to pay $665,000.  After further review, he wanted to drop the price down to $645,000.

But instead of just taking it, I went back around to all the other contenders and offered them another opportunity.

A different buyer agreed to pay $655,000, and Mr. T. held his ground, and backed out.  But then the $655,000 guy cancelled, and in the next round Mr. T wanted to drop again, this time down to $635,000.

I got another buyer to do better.

We closed at $650,000.

It’s more work to keep all the contenders engaged, and keep tempting them to buy the house during our five-week adventure.  But this is what I do for my sellers – I’m going to everything I can to get you that extra $15,000.

Posted by on Dec 11, 2018 in Flips, Jim's Take on the Market, Real Estate Investing, Remodel Projects, Why You Should List With Jim | 5 comments

Compass San Diego

Today we attended the soft opening of the new Compass office at 1953 San Elijo Ave., Suite 101 in Cardiff By-the-Sea (next door to Cicciotti’s).  More than 100 Compass agents will occupy both floors eventually (63 now).

Other offices being built include a 22,000sf, ground-level office in One Paseo in Carmel Valley, which will be the central hub for San Diego.  Compass will be the exclusive residential real estate office in One Paseo, and have the valet parking right in front, along with 100 parking spaces.

The downtown Encinitas office on Coast Highway 101 will probably be the next to open early next year, plus there is another 11,000sf office being built out at the Equinox center in La Costa, which will be the new HQ for the Klinge Realty Group.

Compass started in San Diego in January, and we joined in July when there was 160 agents.  By the end of this week, there will be 320 Compass realtors in the San Diego area!

Wow!

Donna and I with our manager Steve Salinas

Posted by on Dec 10, 2018 in About the author, Compass, Jim's Take on the Market, Klinge Realty | 5 comments

Inventory Watch

The slowdown started during the summer, so there was some evidence of it by the beginning of August – and it has been in the news non-stop ever since.

Are sellers getting the message?

Maybe, but they must think it applies to someone else:

NSDCC Average List-Price-Per-SF:

Week
Under-$1M
$1.0M to $1.5M
$1.5M to $2.0M
Aug 1
$434/sf
$493/sf
$590/sf
$434/sf
$496/sf
$596/sf
$426/sf
$494/sf
$608/sf
$430/sf
$493/sf
$622/sf
Sep 3
$427/sf
$486/sf
$611/sf
$436/sf
$489/sf
$603/sf
$439/sf
$483/sf
$613/sf
$440/sf
$476/sf
$618/sf
Oct 1
$441/sf
$476/sf
$624/sf
$441/sf
$481/sf
$612/sf
$434/sf
$487/sf
$612/sf
$426/sf
$492/sf
$602/sf
$422/sf
$495/sf
$601/sf
Nov 5
$418/sf
$490/sf
$601/sf
$449/sf
$498/sf
$605/sf
$449/sf
$498/sf
$624/sf
$450/sf
$492/sf
$620/sf
Dec 3
$454/sf
$478/sf
$611/sf
$455/sf
$487/sf
$619/sf

Lower their price? They’d rather not sell – and this is December, when you’d think the sellers who are on the open market must be motivated.

Don’t get your hopes up about seeing a big dump on price in Spring, 2019. If it were to happen, it will happen quietly, and you’ll only see it after the fact in late summer, once sellers have exhausted their optimism.

Read More

Posted by on Dec 10, 2018 in Inventory, Jim's Take on the Market, Market Surge, Slowdown | 1 comment

Manafort’s Forfeitures

Older news now but once the federal government seizes these homes and tries to resell them, they will find out that there isn’t much equity.

Paul Manafort’s prized possession — a 5,574-square-foot home in the Hamptons, which includes a putting green, pool house, pergola and “waterfall pond” and where hundreds of red and white flowers were planted in the shape of an M — will be owned by the U.S. government.

It’s one of five properties, bank accounts and a life insurance policy Donald Trump’s former campaign chairman agreed to turn over to the government as part of his plea deal, where he admitted to conspiracy against the U.S. and witness tampering.

Read More

Posted by on Dec 10, 2018 in Jim's Take on the Market, Local Government | 4 comments

Bank of Mom & Dad

How can the market keep going? Generational wealth distribution!

Among respondents with an annual income over $100,000 who anticipate familial help with a down payment, the average expected level of support is over $50,000, enough for a 20 percent down payment on the national median condo price.

This is more than twice the expected down payment assistance of those making between $50,000 and 75,000, and over ten times that of those making less than $25,000, who expect to receive $4,358 on average.

This finding highlights the chronic nature of wealth inequality — not only do lower-income millennials have less purchasing power themselves, but their families have less support to offer.

We find that when it is available, familial down payment assistance can put homeownership much closer in reach.

Among millennials earning more than $50,000 and expecting help with a down payment, we estimate that 32.8 percent will be able to acquire a 20 percent down payment within the next five years, compared to 19.8 of those with similar earnings but no expected down payment assistance.

Among those earning less than $50,000, the prospects are notably worse, but those who expect down payment help still see a significant step up compared to those expecting no help. While help from family can make homeownership a more attainable goal, this option is available to a minority of millennials, with the largest benefits accruing to those earning the highest incomes.

Link to Article

Posted by on Dec 9, 2018 in Bailout, Boomers, Jim's Take on the Market, The Future, Thinking of Buying? | 7 comments

Defective Nuclear-Waste Storage

Are you looking for one more reason to move away? 

It sounds like if/when the Big One starts shaking, you will need to grab everything you own and move to Yuma.

The Nuclear Regulatory Commission (NRC) admits in their November 28, 2018 NRC Inspection Report and Notice of Violation, every Holtec canister downloaded into the storage holes is damaged due to inadequate clearance between the canister and the divider shell in the storage hole (vault).  The NRC states canister walls are already “worn”.  This results in cracks. Once cracks start, they continue to grow through the wall.

The NRC stated Southern California Edison (and Holtec) knew about this since January 2018, but continued to load 29 canisters anyway.  Edison’s August 24, 2018 press release states they plan to finish loading mid 2019.

The NRC states Edison must stop loading canisters until this issue is resolved.  However, there is no method to inspect or repair cracking canisters and the NRC knows this.

The NRC should require all San Onofre thin-wall canisters be replaced with thick-wall transportable storage casks.  These are the only proven dry storage systems that can be inspected, maintained, repaired and monitored in a manner to prevent major radiological releases and explosions.

California state agencies should revoke San Onofre permits and withhold Decommissioning Trust Funds until these issues are resolved.

The Navy should consider revoking the San Onofre Camp Pendleton lease until Edison agrees to replace thin-wall canisters with proven thick-wall transportable storage casks.  This is a national security issue. If the NRC cannot do their job, maybe it’s time to bring in the Marines. The Navy has nuclear experts.

The current storage system puts the public at risk. Nuclear waste stored in thin-wall steel canisters (only 5/8? thick) cannot be inspected, repaired or safely transported. Thin-wall canisters crack, but technology does not exist to inspect for cracks or repair cracks once canisters are filled with highly radioactive nuclear fuel waste.

The President of Holtec has stated a through-wall crack will release millions of curies of radionuclides and it’s not practical to repair them, even if you could find the cracks.

Yet, they have no plan in place  to stop or contain a cracking, radiation-leaking, and potentially exploding canister.

Each canister contains roughly a Chernobyl nuclear disaster.  Once canisters explode, the radionuclides will travel with the wind, similar to how smoke traveled with the California Camp Fire.

San Onofre will have 73 canisters stored on-site by mid 2019.

Link to Article

Posted by on Dec 9, 2018 in Jim's Take on the Market, Local Flavor, Local Government, The Future | 11 comments

Shiller on Today’s Market

Link to NYTimes article

We are, once again, experiencing one of the greatest housing booms in United States history.

How long this will last and where it is heading next are impossible to know now.

But it is time to take notice: My data shows that this is the United States’ third biggest housing boom in the modern era.

Since February 2012, when the price declines associated with the last financial crisis ended, prices for existing homes in the United States have been rising steadily and enormously. According to the S&P/CoreLogic/Case-Shiller National Home Price Index (which I helped to create) as of September, the prices were 53 percent higher than they were at the bottom of the market in 2012.

That means, on average, a house that sold for, say, $200,000 in 2012 would bring over $300,000 in September.

Even after factoring in Consumer Price Index inflation, real existing home prices were up almost 40 percent during that period. That is a substantial increase in less than seven years.

Read More

Posted by on Dec 8, 2018 in Jim's Take on the Market, Same-House Sales, Slowdown | 7 comments