Let’s examine the summer’s new listings of NSDCC detached homes – are more properties coming to market this year, and if so, at what price points?
These are the new listings between June 1st and August 15th:
| Year | |||
| 0-$800,000 | |||
| $801-$1200K | |||
| $1,200,000+ |
Several thoughts:
1. The frenzy, and resulting price increases, have been primarily isolated in the lower-end markets only.
2. More sellers are pushing higher on price, but the excess supply is keeping list prices in check in the higher ranges.
3. The frenzy could keep cooking 1n the lower-end markets.
4. The higher-end markets could go down in price.
The market softness increases exponentially as sellers push higher. Comps are harder to come by, there is more competition between other unsold listings, and buyers can be pickier.
How do you see it?
I’ve always thought relative pricing on houses was odd.
For a little more money, you get a much better/bigger house or better location.
I think this is because most people buy as much house as they can afford, and the great mass of 2-income middle-class families are all stuck in the same range, stretching to buy $600,000 – $900,000 houses.
So if you can earn and save a little bit more than that bulge bracket, and reach to buy $1m – $1.2m, you get a hell of a lot better house for a little bit more money.
I kind of agree with W.C except for the threshold to get that bigger house and hence a better deal has moved from $1M to $1.2M. So this is why some of us are hoping(praying) for a more reasonable price.
A lot of SD is really more of a beach resort town so that kind of distorts things, Inland will probably cool off some.
Definitely agree with WC! See the same in LA.
Inland has been cooking too! Granted it’s always about 10-15 degrees hotter there too! The under $800,000 inventory is almost even with last year, but prices are up in all three price categories.
Here is the listing information from June 1st through August 15th for the inland areas of: Poway, Scripps Ranch, Santa Luz, Rancho Bernardo and Rancho Penasquitos.
YOY#Listings diff/LP Avg SF diff
0-$800K – 2%/+20%
$801k-$1200K +56%/+15%
$1,201,000+ +95%/+14%
WC and Tj you’re correct here; if the buyers can save or push to that next bracket they’d get an additional 1234sf of house between $801k-$1.200M.
Here’s one listed in the $1,200,000+ category:
http://www.sdlookup.com/MLS-130043115-13220_Highlands_Ranch_Rd__CA_92064
Richard, that’s quite the spec home. Wonder what the backstory is there.
KO: The owner of 13220 Highlands Ranch bought the property in 1996 for $1,020,000; the home on it was 5105sf. I personally like the style and architecture, but IMHO the house belongs on a lot overlooking the ocean. If you look at the Google map view the main views overlook the home below it, and then extend towards the NorthEast looking over the valley at the East end of Lake Hodges. https://www.google.com/maps?q=13220+Highlands+Ranch+Rd,+92064
The owner definitely has a thing for Ultra-Modern Architecture. They have a lot that they’re selling above the Heritage in Poway too; check out the listing with pictures of the proposed home for the lot.
http://www.redfin.com/homes-for-sale#!lat=33.051819&listing_id=20587064&long=-117.02405499999998&market=socal&v=8&zoomLevel=17