This guy has been tempering his remarks the last couple of years, but he cuts loose today with one of the more irresponsible comments heard in quite a while – from the latimes.com:
“The stimulus has worked,” said Rick Hoffman, president of Coldwell Banker Residential Brokerage in San Diego and Temecula Valley. “Buyers are confident that we have seen the bottom of the real estate market and that we are on the way back up.”
He can’t speak for buyers – and he should have more respect for his agents who are trying to properly advise their clients.
Proceed with caution, and buy only if you find the right house, at the right price.
To qualify for the $8,000 federal tax credit, buyers have to secure a “binding” contract by the end of today, and close escrow prior to June 30th.
Has there been a mad rush over the last week to lock down a contract? Yes, buyers are looking feverishly, but it doesn’t look like many are buying just because of the tax credit – it still has to be the right house.
Here are the numbers of detached listings that have been marked pending over the first four days of this week, compared to all five days of last week – we’ll check back next week to see how many were marked pending, dated today (or backdated over the weekend):
# of PENDS
In the end, both the federal and state tax credit will be bonus money for buyers who happened to be in the right place, at the right time.
There has been a real push to extend escrows that were originally planned to close in April, into May to be eligble for the state tax credit too. In a couple of weeks we’ll look back and see how the first-week-of-May closings compared to last year, but it’ll be hard to determine how many closed just because of the state tax credit – because in North SD County Coastal the detached sales have been much stronger this year overall:
A 44% increase in North SD County Coastal detached sales, year-over-year!
I’ve been doing my own research project too, see the youtube review below. But in the video I screwed up – I was blabbing about the ’69 Camaro Indy 500 Pace Car model and by mistake called it a California Special, a real insult. I apologize to Camaro lovers everywhere.
A white ’67 Camaro convertible paced that year’s Indy 500 and some 100 examples were built for speedway use, but it wasn’t a special edition.
When the Camaro again was invited to pace the ’69 race, Chevy determinedly exploited every aspect of the expensive opportunity. Thus was born regular production option Z11, a $37 striping package that recast a Camaro convertible into a Pace Car.
That $37 price is deceiving, because the RS trim package (which included hidden headlamps) and the SS trim package (with the Z/28-style Cowl Induction hood and decklid spoiler) also were required. Furthermore, the Pace Cars had their own special interior with orange and white hound’s-tooth upholstery complementing the orange stripes and white paint. Buyers could choose either the 350-cubic-inch/300 horsepower small-block V-8 or one of the four 396-cubic-inch big-block V-8s with outputs ranging from 325 to 375 horsepower (the latter with aluminum cylinder heads and an 11.0:1 compression ratio). The car 1960 Indy 500 winner Jim Rathmann drove at the head of the 1969 Indy field was powered by the 375-horse 396, but the vast majority of the 3675 replicas were 350-powered.
A listing agent in Carmel Valley said the other day, in response to an offer that was 5% under the bottom of his price range on a listing that was 53 days on market:
“CV is buzzing. The summer is warm and real estate is on. The gold rush is here again man, I suggest you put your pan in the water and get some!”
He has two sales closed this year, so take it all with a grain of salt. But the sentiment was accurate – the CV market is very competitive, and statistically holding up well. Last year the average sales price for detached homes in 92130 was $982,702, and so far in 2010 it is $983,485:
As we saw in the last video, people are out buying houses! Are they reading articles like this one today in the U-T and figuring now’s the time?
San Diego County’s housing market was the strongest in the nation in February, the widely watched Standard & Poor’s/Case-Shiller Home Price Index reported Tuesday.
The price index for San Diego was up 0.6 percent from January, the only market out of 20 surveyed nationally with an increase. The index locally was up 7.6 percent from February 2009, second only to San Francisco.
Those who have a deep desire to buy will shrug off the overly-negative blogs and gravitate to glowing reports in the mainstream media. People want to buy, and they tend to focus on news that supports that decision.
Alan Gin, an economist at the University of San Diego, was at a loss to explain San Diego’s Case-Shiller numbers.
“It’s very unusual that every other market is down,” Gin said, noting that the unemployment rate of 11 percent here is worse than the national average.
The Case-Shiller figures indicated that prices were up in the top and bottom thirds of the local market but down in the middle, priced between $308,000 and $461,500. Gin speculated that’s because there are relatively few bottom-end sellers to buy mid-level move-ups.
To the layman, Alan is a familar authority because he gets quoted every month, right or wrong. When he can’t explain the appearance of a stronger market, people want to read it as good news too. As he notes, the local unemployment hasn’t slowed down the real estate market, and even with the Fed out of the MBS business the mortgage rates are holding – if they just stay in the 5% to 6% range, we should be alright.
Sellers will have to get off their high horse and lower their unrealistic list-prices as the spring/summer market unwinds, but if there are still enough buyers with cash and jobs, there doesn’t appear to be any other obvious bad news coming our way to stop them from buying.
It would take a major unforeseen event to rattle the market over the next few months, because the reports keep coming out positive. Your not going to see any real estate companies or financial institutions issuing any report to the contrary – most everyone is talking it up now. Tread carefully.
Here’s how detached-home buyers have financed their purchase over the last 30 days:
San Diego County overall is fairly reliant on the govies, with 36% of all houses purchased over the last month being bought with FHA or VA financing. North SD County Coastal not so much – which means that if there are more govie defaults ahead, hopefully the coastal area will be less impacted.
Mortgage rates moved up significantly last week. Will rates continue to rise? Expect mortgage rates to go up this week closer to 3.1%. Freddie Mac will release the 30-year fixed mortgage rate tomorrow morning. Stay tuned.
Jim the Realtor is legit - I interviewed three brokers; he said list price should be $100,000 higher than the other two brokers; listed it with him and had all cash (no financing) offer in two days, five day contingency period, closing in two weeks - and it closed at his recommended list price. I could not recommend anyone more than I recommend Jim the Realtor.
When we moved to San Diego in 2005 we rented a big house on Mt. Soledad (La Jolla) with 180 degree ocean views for the same payment as a mortgage on a dump in Chula Vista. Clearly something was wrong. Yet, the media was full of the usual happy-talk nonsense, so I was glad to find Jim's blog. I've followed his honest assessments and data since.
We decided to sell and move to AZ at Thanksgiving. Dec. 1st we met with Jim to sell our home. We closed today (29 days later). Jim orchestrated a feeding frenzy -- we had 25 showings in 2-1/2 days, multiple offers, and sold for well over asking price. I'd say he earned his commission! We have owned and sold homes in 5 different States always using experienced, productive, full-time realtors. Jim outshines them all.
You don't decide to sell and close 29 days later over Christmas (with COVID lockdown) without some miracles. Donna was amazing at performing lots of those miracles and ensuring that everything was done right and on time. They are a terrific team with a very responsive and professional network.
Where do we begin..2020 has been a year for everyone. When COVID hit and shut down both my husband and my businesses, we were left with a mortgage and very little income coming in. We were stressed, scared and felt stuck. We made the hard decision to sell our home and move out of state. We contacted the Klinges' and spent a good hour going over what we hoped we could accomplish. Jim and Donna came over with comps in hand and suggestions on improvements to get our house ready for the market. It was overwhelming to think about, but Donna was there and one step ahead in every scenario. Basically we just approved what they suggested and Donna handled literally everything. We placed our house on the market and within the first day we had multiple offers well above asking price! We couldn't believe it. We were overjoyed! Jim countered the offers to weed through them, and everyone came back with way more. It was amazing, and we are ?? sure it was because of the staging and repairs the Klinges suggested we do.
Due to unforeseen dishonesty from the buyers lender, we hit a big hurdle when trying to close. We had already moved out of state and were shocked when three days before closing the lender dropped a bombshell on the buyers and us. However, Jim and Donna handled it like veterans, not afraid to play hard ball and represent their clients. After a few phone calls with us, and several between Donna and the lender, they had a plan B-Z to make sure we were taken care of. In the end we closed with even more money than we ever thought possible and with very little work from us. The Klinges handled this entire "2020" worthy event with the utmost professionalism and did everything in their power to not only make this as smooth as possible for us, but we also walked away with more money from the sale of the house than we ever hoped for. After working with Jim and Donna, you don't ever use anyone else. They are hands down the best team to represent you in any scenario.
Working with Klinge Realty Group was a great experience! They are very responsive, professional and knowledgable about the real estate market! I would definitely recommend Klinge Realty Group.
Jim and Donna Klinge made the sale of our condo extraordinarily easy. They know the market and gave us sound advice backed by details and very considerable experience, reflected both in the initial pricing and subsequent negotiations. They work together as a team and are always available to talk. We had a few challenges with our property and they were able to coordinate the resolution to everything, including items that I would not think would ordinarily be their responsibility to handle. They made the whole process effortless on our part. They are folks with high integrity and we cannot recommend them highly enough.
Review for Member: Donna Klinge
I cannot believe there are no reviews of Donna yet, ugh!! She is the secret sauce of the Jim Klinge/Donna Klinge combo! I will touch on Jim here, but Donna is why I'm so totally loyal to these two (no offense to Jim :)).
I consider myself a rather savvy buyer/seller. I've bought/sold 7 times in about 15 years. On the buy side, Jim is the PERFECT combo of: completely digitally savvy (he will pull data all day long until you feel comfortable with your chosen house, area, school district, anticipated appreciation rate...anything!), he's super well respected and known in the area by other agents, an amazingly cool but strategic negotiator, is totally devoid of desperation for a sale/commission, and more.
Then once you get into contract phase, Donna literally handles every last and final detail in a concierge-like manner -- totally shielding you from the daily back and forth, noodling and annoyances of the buyer's requests. She solves it ALL; it's miraculous what that woman accomplishes over and above what is even expected in a buy/sell transaction.
On the sell side, Jim and Donna do the same, but even moreso. Donna in particular truly takes everything off your plate: she'll manage getting the house painted, the carpets replaced, she'll go on site (as she Jim both did for me when selling our rental properties) to work with the renters and make sure the house is ready to show -- freeing me to have to take time off of work to do so. They work with A+ integrity, too, so you know you are serving all parties fairly and lawfully throughout.
A home purchase/sale is the most considered you'll ever make. HIRE A SAVVY AGENT, not a friend!, and get what you need out of the transaction. Jim and Donna are our agents for life.
Jim and Donna Klinge are by far the most professional, personable and responsive realtors I have ever worked with. They provide VIP concierge level service in every area of the process of selling your home. My home was marketed so successfully that we received an offer the day after our first and only open house. Thanks to Jim's pricing and negotiating, our house is now the highest sold in our community. Jim's vast experience means he has worked with several realtors and knows the market all over north county. Donna is AMAZING in processing everything in the transaction. She scheduled trades people to work on the house in preparation for the sale as well as the repairs needed before closing. She communicated clearly every step of the way about what would be happening. She took the weight off my shoulders for the whole process. I will always use Jim and Donna for my future real estate needs and I whole heartedly recommend them to anyone buying or selling a home.
Jim and the team at Klinge Reality are without a doubt the best in the business! Not only was Jim helpful and extremely knowledgeable, he was patient and determined to help me find my first home. Jim and his team have been in the business for many years, and it shows. Jim is a wealth of knowledge and was my biggest proponent despite the temperature of the competitive market. I ended up getting the perfect property in my dream neighborhood all thanks to Jim. From the day my offer was accepted, Donna was a real lifesaver. She was extremely helpful, responsive, and knowledgeable when it came to every minute detail, and held my hand through the process. As a first time home buyer I had no idea what the process would entail, but Donna curtailed every concern I came across and made the escrow process feel seamless. Jim and Donna provided me the best home buying experience, and I am very grateful for all they did for me. It was truly a pleasure to work with Jim and Donna and I am already looking forward to the next time we work together!
Review for Member: Richard Morgan
Richard is an amazing realtor! He has high integrity and genuinely cares about his clients and their needs. Richard paid close attention to what I was seeking in a home and was very patient in our search to find it. I would highly recommend Richard and will use him for future transactions. Truly a different kind of realtor experience!
Could not be happier with my experience with Jim and his team. He helped me sell a very unique and challenging property. Throughout the entire process he was always available, honest, transparent, trustworthy, and always put my interests as a seller first. A (rare) true professional! During close of escrow Jim went above and beyond to complete the deal. It would not have been possible without his experience, fantastic team, and pure dedication. Highly recommended!
Thanks Jim and Donna Klinge!