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City of San Diego Tenant Protection

by | May 24, 2022 | Real Estate Investing | 2 comments

San Diego renters can breathe a sigh of relief knowing they are a little bit more secure as the city’s new eviction moratorium is now in place for renters who are up-to-date on their rent payments and abiding by the terms of their leases.

“San Diego cannot afford to have one more person enter into homelessness and this is a way to prevent that,” said San Diego City Council President Sean Elo-Rivera, who championed this measure.

The new rules that went into effect Sunday prevent landlords from removing tenants for ‘no fault’ reasons.

“Despite having paid their rent on time,” said Elo-Rivera. “Despite having abided by the terms of their lease, they were still being evicted because the rental market in San Diego is such that landlords know that if they do a bit of an upgrade and some minor renovations, they can jack up rent substantially.”

Under the moratorium, if a landlord or family member wants to move into the unit, they need to provide the tenant with 90 days-notice.  If they want to take the property off the rental market, they now must provide six months-notice.

“What we have done though is ensure that there’s fewer exceptions to the rules and when someone is going to be evicted, that they’re given enough time to get their life together,” said Elo-Rivera.

However, some people feel like the moratorium is unnecessary.

“It feels a little bit like a solution looking for a problem,” said Lucinda Lilley, president of the Southern California Rental Housing Association, which expressed opposition when the measure was approved by the San Diego City Council in April.

“I don’t think that it’s been properly vetted,” said Lilley. “I don’t think that there is any data that shows that it is necessary.”

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MCM Original

by | May 23, 2022 | Bubbleinfo TV, Del Mar | 0 comments

A remarkably original mid-century modern on an acre in Del Mar.

It listed for $2,400,000 on February 26th, then the price was raised to $2,900,000 on March 8th when marked pending. The final sales price was $2,800,000:

New-Listings Comparison

by | May 23, 2022 | Jim's Take on the Market | 1 comment

The market’s direction will be determined by inventory, and San Diego is #1 on Bill’s list for the biggest percentage drop year-over-year.  Also consider how the San Diego metro compares to others that had a similar number of new listings in April:

Metro Area
April Listings
Metro Population
People Per New Listing
Boston
3,386
4.9 million
1,447
San Diego
3,513
3.3 million
939
Portland
3,684
2.5 million
678
Columbus
3,620
2.1 million
580
Jacksonville
3,472
1.6 million
461

Our market is starved for inventory, so you really can’t blame sellers for pushing it, price-wise. Buyers may back off some, and not as many listings will sell. But when the success rate of listings-that-sell has been an unusually-high 80% to 90%, we can afford some additional failure.

We’re going to have fewer sales. Panic selling? Probably not.

https://calculatedrisk.substack.com/p/final-look-at-local-housing-markets-a11

Inventory Watch

by | May 23, 2022 | Inventory | 0 comments

The overshoot part of the frenzy is unavoidable.

The pricing of the new listings was calculated on sold comps from when the frenzy was hotter and sellers were getting big pops over the list prices.

Back then, you didn’t have to spruce ’em up as much, you got away with sloppy pricing, and the listing agents insisted on 60-day rentbacks for free, ‘coming soon’ teasers for weeks, and showing times based on when the listing agent felt like fitting it into their schedule.

The pricing part has been correcting – it’s the rest of the package that needs adjustment:

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365 Marine Street, La Jolla

by | May 20, 2022 | Bubbleinfo TV, La Jolla, Thinking of Buying?, Thinking of Selling?, Why You Should List With Jim | 5 comments

It is a true honor to have listed for sale my favorite home of all-time!

365 Marine St., La Jolla

3 br/3.5 ba, 2,894sf

YB: 2018

LP = $6,950,000

This custom contemporary was designed and carefully-crafted for over three years to be the ultimate beach house just 100 yards from the sand! The main living area has floor-to-ceiling glass panels that open dramatically to create the perfect indoor-outdoor experience with breath-taking 180-degree ocean views over Marine Street beach! The interior is loaded with so many custom features that they make this home downright sexy! Ample off-street parking and an easy walk to the village too. Architect Mark Morris said in his 20+ years of designing super-custom modern-contemporary homes in the area, this is his favorite project of all-time. The ultimate in modern contemporary design – it’s a trophy property!

https://www.compass.com/app/listing/365-marine-street-la-jolla-ca-92037/1050797924033993089

Ask Jim

by | May 20, 2022 | About the author, Bubbleinfo Readers, Jim's Take on the Market | 7 comments

The Other Bob (TOB) suggested a blog post where he and others could ask questions.

Let’s do it!

Leave your questions in the comment section, and I’ll do my best to answer promptly. The comment section is moderated, so you will see your comment once I have a chance to review and approve.

We are busy launching my best listing of all-time today, so it promises to be the biggest day in the nearly seventeen years of Bubbleinfo.com history!

For those who would like to review the history of this blog, the 10,094 posts are poorly organized here. You’ll see that I went back to the first three years and marked nearly every blog post as private (868 posts). Hopefully, the whole history will be re-visited, organized, and turned into an action thriller some day:

https://www.bubbleinfo.com/archives/

The Slow Unwind – Fewer Sales

by | May 19, 2022 | Jim's Take on the Market, Slow Unwind | 7 comments

There is rampant speculation that home prices must come down to compensate for higher rates.  But there is another solution.

Fewer sales.

We learned a couple of lessons during the peak covid days:

  1. Sellers don’t have to sell – they can wait it out.
  2. When they do, the market can survive with fewer sales.

Look at the NSDCC sales in the past months of May:

2018: 273

2019: 297

2020: 143

2021: 300

2022: 126 so far

We might not hit 200 sales this month, and while the doomers and mainstream media will be talking about how the demand has been crushed and there is no hope, will the sellers panic?  Even if they aren’t receiving offers? Or not having any showings at all?

Have you seen anyone dump on price yet? Not really.

Are today’s sellers willing to keep reducing their price until they find what the market will bear?  Doubt it – and after two price reductions (three tops) they will give up, rather than keep lowering the price. They can blame on ‘the market’, or on their realtor, and decide to try again next year.

Anybody who needs the money can borrow against their hefty equity positions or get a reverse mortgage.  If they can’t make their payments, they can float for 6-12 months while their lender decides if they want to get back into the foreclosure business, which is California means you have to offer the borrower a loan modification before you can foreclose.  It will be months, and probably years, before we see any real foreclosure activity – if any.  If they have to, the non-payers can drag it out at least until next year, live for free, and just sell for less then.

Sellers might get a little antsy, but it will take more than that to give up hope of cashing in that big ticket.  They have been dreaming for months about what they are going to do with all that money, and they aren’t going to give up on those dreams easily.

Price-wise, we will hang out in Plateau City.

There will be an occasional big sale that keeps everyone optimistic – this will be the next one in South Carlsbad which was on our private site at $3,100,000 but hit the open market at $2,880,000, which should really rev the engines this weekend:

https://www.compass.com/app/listing/2864-camino-serbal-carlsbad-ca-92009/1045075166600199825

But most listings will languish, which is ok. It’s how we used to do it, and we survived!

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