Fallbrook isn’t on our regular route here on the blog, but seeing houses like this can keep pricing in perspective. I’m also hoping to demonstrate that I can sell any house, any price, any where – let me help you!
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The OC Register is reporting that million-dollar sales in Orange County are down 12% this mid-summer. We’re watching the sales counts closely, because we know that is the leading indicator for the market.
How about our north county coastal region?
The OCR only looked at zip codes that had a $1,000,000 median sales price, which in our case, excludes all four zips in Carlsbad.
Here are the stats on the Encinitas-to-La Jolla sales over $1,000,000 (where 91% of the active listings today are over $1M) between July 13th and August 11th:
Our $1M sales count was up 9% YoY, instead of down – yippee! But nobody in this market should get giddy about pricing in general – it is flat, at best.
A simple fix is needed, and it’s a long way to Tipperary.
What does JtR do?
The baby boomer liquidation sale has failed to materialize….so far. Boomers are holding onto their old homes longer, and living the good life instead:
Baby boomers are not leaving the homes they own to settle into apartments, as housing economists had predicted.
A new edition of Fannie Mae Housing Insights says that boomers are not responsible for a recent surge in the apartment market. But when they do finally downsize, the very size of the generation will be enough to “move markets.”
Predictions were that boomers, the generation born between 1946 and 1965 (some sources say 1964), would begin downsizing naturally as they became older and more frail. “The research showed that the likelihood of Baby Boomers occupying single-family homes has changed little in recent years, despite the factor that boomers are experiencing major life changes that might be expected to cause a downshift in their housing consumption,” the Fannie Mae article said.
Instead, through 2013, boomers had not significantly reduced the rate at which they live in single-family, detached houses, the agency said. And although the number of rooms in those houses has decreased in recent years, “boomer home size has increased since then, suggesting the boomers are not trading down to smaller single-family homes, either.”
The article added that the “number of boomer apartment dwellers has not budged in recent years, whereas the number of millennials in multifamily rental units has grown by nearly half a million annually.”
That’s a significant finding with big implications for the housing market, because “boomers have an enormous residential footprint.” Some 40 percent of the nation’s homes are occupied by boomers, who have “half of the nation’s housing wealth,” Fannie Mae said.
As baby boomers move into their retirement years, they’re having a major impact in other ways, too.
“After working most of their lives, Baby Boomers want it all in retirement: travel, dining out, owning two cars and multiple homes. And they want to do this off of income generated by their investments,” said a recent article in Wall Street Daily. “Yet you’d be amazed how many people go to see an advisor with far too little in savings or investments to enjoy that sort of retirement. Even those people who have enough assets often have them allocated extremely poorly.”
Some boomers have accumulated no savings for retirement, the article said.
Read full article here:
No big drop off in inventory yet – just four fewer listings today than there was a month ago. It happened like that last year too, just a 1% drop between the end of July and the end of August.
In 2014, the inventory was steady through September, and then only declined 6% by the end of October.
Click on the link below for the complete NSDCC active-inventory data:
This was included in the NSDCAR weekly update today:
- People and For Sale signs are not allowed to be shown in pictures
- Photos should be from the subject property.
- Cancelled or withdrawn listings must wait 30 days before entering as new.
- Avoid disclaimers in the remarks section, such as “buyer to verify all information” or sold as is
But how many times have we heard that realtors adhere to a strict code of ethics? Not just a code of ethics, but a STRICT code of ethics?
Why would you need to warn agents about breaking the rules?
Excerpted from an article in BI:
Chang’s client is one of the group of wealthy Chinese caught in between a rock and a hard place: Leave their assets in China to potentially weather additional market volatility and yuan devaluations — or put it in real estate that is now more expensive than just a few weeks earlier.
“Lots of my clients have been hit heavily by the equity market,” Chang, who was once a vice president at HSBC’s private bank, told Business Insider through a series of interviews. “But that only makes them more determined to diversify out of China.”
The chaos of the past few weeks is likely to lead to an acceleration in the rate of real-estate purchases by wealthy Chinese buyers in the US and elsewhere.