Ok, ok, the prices have gone nuts and you’re wondering what you can buy if you just go a little further out.
Here’s an estate-like property on a half acre in the rural area of Vista just outside of Shadowridge that’s still south of the 78 so it’s closer than you might think.
It’s a 3br/2.5ba, 2,630sf house on a half-acre with pool that listed for $1,099,000. Sounds reasonable, right?
It closed for $1,240,000 on July 7th.
Last week we saw the big dropoff in the Under-$1,000,000 range as the pricing of low-end homes between La Jolla and Carlsbad shot upward. Today there are four houses for sale under $1M.
Here is the $1,000,000 to $1,500,000 range:
On July 29, 2019, we had 192 active listings (avg. $494/sf) and 120 pending listings.
Last year at this time we had 122 active listings (avg. $544/sf) and 169 pendings.
Today we have 45 actives (avg. $693/sf) and 85 pendings.
The number of active listings has collapsed, dropping 77% in two years. No wonder the average cost-per-sf has increased 40% during the same period!
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You may not have the budget for floor-to-ceiling renovations but that doesn’t mean you can’t still make a big difference to a home’s appearance. Interior designers from across the country respond to the question: What is your favorite summer design hack on a dime?
Here’s what they said:
1. Refresh the Color
“What works for summer—and all year round, really—is making a statement with color. A fresh coat of paint on the wall or repainting your furniture and adding new hardware offers a renewed look to any room. Don’t be afraid to try cool, summery colors; they create a tranquil mood to the space.”
See full list here:
https://www.nar.realtor/blogs/styled-staged-sold/5-favorite-home-design-hacks-on-a-budget
I think I must have had the 2x zoom on by accident when filming here. But if you like close-ups…..
Regardless where the inventory goes (likely to retreat), the potential home buyers should stay interested, just because of rates staying low. Many of them may be looking forward to when the foreclosures start pouring in.
What’s the latest on the delinquencies/forbearances? From Black Knight:
Total U.S. loan delinquency rate (loans 30 or more days past due, but not in foreclosure): 4.37%
– Month-over-month change: -7.62%
– Year-over-year change: -42.39%
Total U.S. foreclosure pre-sale inventory rate: 0.27%
– Month-over-month change: -1.73%
– Year-over-year change: -24.23%
Total U.S. foreclosure starts: 4,400
– Month-over-month change: 15.79%
– Year-over-year change: -25.42%
Top 5 states by 90-plus days delinquent percentage:
Mississippi: 4.89%
Louisiana: 4.59%
Hawaii: 4.14%
Nevada: 4.14%
Maryland: 4.08%
The takeaway:
The national delinquency rate is at its lowest level since the pandemic hit, even below the pre-Great Recession average.
While there’s been improvement, however, there are still 1.5 million homeowners 90 or more days past due on their mortgages but who are not in foreclosure—nearly four times pre-pandemic levels.
There are 1.5 million homeowners who are 90+ days late but who are not in foreclosure? Do you need any more evidence that lenders aren’t interested in foreclosing? They will give loan mods when they get around to it.
It’s a great time to be a deadbeat!
The prognostications are coming in about the direction of home prices.
It’s easy to predict that the market won’t be as hot as it’s been (or will it?).
The Burns forecast will be as good any of the guesses, and don’t be surprised if all of them end up predicting a goose egg over the next 1-3 years as we pull in Plateau City. Sellers shouldn’t mind much, because they picked up a whopping 31.6% increase during the 2020-2021 Greatest Real Estate Frenzy of All-Time.
There will be some potential sellers – probably those who don’t need to move, have plenty of time, and aren’t going to give it away – who are waiting for the market to top out.
You can’t blame them. It’s been a hellava party over the last year, and they don’t want to leave any money on the table. They will be the sellers who provide the extra inventory that will help moderate the pricing.
But I’m going to take the OVER.
There are two things that can cause moderation; sales and pricing.
It’s likely that one of these two things will happen:
The 31.6% increase in pricing did put a dent in the affordability, but homes were already expensive and available only to the affluent anyway. They will still have the horsepower to pay a little more in 2022 and 2023, but they will be more picky than ever about what they are willing to buy.
I’m taking #1, and guess that sales will drop, but sellers who can find a buyer will be getting a premium.
They are predicting that the BHVI will go up 5% next year, and 3% in 2023.
I think the BHVI will rise 10% next year, and 6% in 2023 – and agree with their 0% in 2024.
Abalone Landing Terrace in Carmel Valley has had a typical frenzy – low inventory and rapidly rising prices. There were two sales that closed in 2020 – one $1,650,000 in July and $1,780,000 in October.
At the end of May, 2021 a new listing hit the open market at $1,950,000, and was promptly bid up to $2,120,000. It closed on July 8th, and it must have gotten other residents thinking.
Four new listings have hit the market in the last week:
https://www.compass.com/listing/10545-abalone-landing-terrace-san-diego-ca-92130/827464186068610169/
https://www.compass.com/listing/10569-abalone-landing-san-diego-ca-92130/825523085738089617/
https://www.compass.com/listing/10540-abalone-landing-terrace-san-diego-ca-92130/826913112627057657/
https://www.compass.com/listing/10448-abalone-landing-terrace-san-diego-ca-92130/831161978141937465/
This is a street of 50 homes, with about half of them still owned by the original purchaser from 2002-2003. After having only three sales in the last two years, the four new listings in a week is shocking!
It’s Carmel Valley, so there probably won’t be an issue with these selling. But it shows how quickly the market can change, and provide the buyers with even more data to consider.
Do we just sit there and stare? I need to play this more often!
From the bottom left.
If you ever get famous enough that you might need a direct line – like a batphone – well, then you need to be prepared. A solid red push button will do just fine.
The San Diego Chicken – a legend, and sorry your left hand got clipped.
Rickey! I was at the game when he got his 3,000th hit as a Padre!
Chick, the legend. He was like a father to all of us, talking about our favorite team.
Shaq & Kobe, the duo that won three championships and could have had three more. Between them is the golf ball I used for my only hole-in-one on a legit course in 1994.
Above is my precious two daughters in a photo I took on Esfera Drive when we lived in La Costa. Their beauty overwhelms the wicked full moon in the background.
It’s good to have a few screwdrivers.
Attitude Is Everything
The Klinge name badge, and my grandfather’s business card with home address and phone number!
Mark Kotsay and Phil Nevin both went to Cal State Fullerton (as did Donna and I), and both were the NCAA College Player of the Year. And they both had a great experience with the Padres!
Trevor Hoffman, the Hall of Famer. His kids went to Cathedral when mine did and he participated like a regular guy. He was an incredible baseball player too. Back in the 1990s he threw 95+ gas and blew batters way. But then he developed the wicked change-up that allows him to get 601 saves.
Ken Caminiti is a lesson to us all.
You always need WD-40, DeWalt drill bits, and an extra Master lock. Count on it!
Are you looking for an experienced agent to help you buy or sell a home?
Contact Jim the Realtor!
CA DRE #01527365, CA DRE #00873197
