Inventory Watch

Check out these quirky stats.

In our first two categories, the average list pricing pricing was virtually identical just three months ago:

NSDCC Active Listings

Date
# of Actives Under $1,000,000
Avg. LP/sf
# of Actives $1M to $1.5M
Avg. LP/sf
Jul 22
94
$494/sf
189
$498/sf
Jul 29
97
$493/sf
192
$494/sf
Oct 21
70
$470/sf
165
$551/sf

In the Under-$1,000,000 category, the average list pricing has dropped 5% since July.

In the $1,000,000 – $1,500,000 category, it’s gone up 12% since July!

(more…)

Solana Open House

The best open house this weekend will be down at the sand in Solana Beach, where the weather will be in the mid-to-high 70s. Check out our Old-Spanish bungalow, go surfing at Tabletops, and take a long stroll on the beach!

506 Pacific Ave., Solana Beach

Open 12-3pm

$2,995,000

I’ll be there for the full three hours today!

https://www.compass.com/listing/506-pacific-avenue-solana-beach-ca-92075/359498520290704689/

NSDCC Open Houses This Weekend

I went through the NSDCC open-house list and these are my favorites based on price, location, DOM, and agent. They start in La Jolla (four on the oceanfront!) and go north up the coast as you scroll down.

Let me know if you’d like me to create a personal collection for your search!

Statewide Rent Control Bill 1482

Governor Newsom signed Assembly Bill 1482 into law on October 8.

Quick Summary of the law:

Rent Cap

Rent increases are capped at 5 percent plus inflation, or up to a hard cap of 10 percent, whichever is lower.

All rent increases since March 15, 2019 will count toward the rent cap, and if above the permissible rent cap, will have to be rolled back effective January 1, 2020.

Just Cause

Landlords may only evict for “just cause.” There is a list of 15 reasons.

The just cause reasons are divided into two categories:

“At fault” termination of tenancy is generally based upon a tenant’s breach of the lease, among other reasons, and does not require the payment of relocation assistance.

“At fault” reasons include non-payment of rent, nuisance, criminal activity, refusal to allow entry, and breach of a material term of the lease.

“No fault” termination of tenancy is allowed when the tenant has not breached the lease and will require the landlord to pay one month’s rent in relocation assistance.

“No fault” reasons include owner occupancy, withdrawal from the rental market, substantial remodeling and compliance with government order to vacate the property,

Just cause eviction only applies to tenants who have been continuously and lawfully occupying the property for 12 months.

Exemptions

Exempts single family properties and condos if:

  • Notice of the exemption is provided to the tenants and;
  • The owner is not a REIT, a corporation, or an LLC where an owner is a corporation

Other exemptions include:

  • Housing that has been issued a certificate of occupancy within previous last 15 years
  • Owner occupied duplexes
  • Owner occupied single-family properties renting no more than two bedrooms including Accessory Dwelling Units (“ADU”s). (This exemption applies only to just cause but not the rent cap).

SD Approves Tiny Houses

Here’s how we can get the cost of ADUs down (hopefully):

San Diego officials say they plan to begin allowing movable “tiny houses” in backyards across the city, to help address the local homelessness and affordable housing crises.

The tiny houses, which are similar to granny flats but smaller, can be built more quickly and cheaply than granny flats and will create a new source of low-cost housing — without any government subsidies, city officials said this week.

“I think this is a good, common-sense solution that provides some possibilities for non-subsidized, market-rate type housing,” Councilman Scott Sherman said Wednesday during a meeting of the council’s Land Use and Housing committee. “It’s one small step in dealing with our housing crisis.”

The committee voted unanimously to direct City Attorney Mara Elliott to draft an amendment to San Diego’s municipal code that would allow movable tiny houses as long as property owners adhere to a long list of restrictions and requirements.

Under San Diego’s proposed regulations, movable tiny houses would range in size from 150 to 430 square feet. They would have fire-resistant roofs and would need to be connected to sewer, water and electricity.

While movable tiny houses have wheels, city officials said, they aren’t like a conventional trailer or recreational vehicle. Instead, they are built like a traditional home, with interior space geared for daily living.

They could not be rented out for fewer than 30 days at a time, so they can’t be used as short-term vacation rentals.

Property owners would not be required to provide an on-site parking spot for the tiny house.

They would have to be registered with the Department of Motor Vehicles, but they couldn’t move under their own power. And the wheels couldn’t be removed because they’re needed to support the structure.

Despite the tiny houses being potential competition, the local development community supports the effort.

“Everyone pretty much agrees that the old ways of doing things are not going to get us out of this crisis,” said Matt Adams, vice president of the local chapter of the Building Industry Association. “It’s creative, it’s innovative and you have other jurisdictions around the nation exploring it.”

A property owner can have a movable tiny house installed on their property within 30 to 45 days, much less time than the six to 18 months it typically takes to add a granny flat, said Barrett Tetlow, Councilman Sherman’s chief of staff.

The process takes less time because the movable tiny houses are pre-fabricated and then shipped to property owners, while granny flats are typically constructed on-site and require a lengthier approval process.

Tetlow said a tiny house will typically cost about $85,000 total, compared to somewhere between $100,000 and $150,000 for a granny flat, which is usually between 500 and 1,000 square feet in size.

With tiny houses renting for an estimated $900 per month, Tetlow said, a property owner would recover their initial investment in about eight years. After that, the rent from the tiny house could help cover their mortgage payment or other expenses.

The tiny houses would become a new rung on the housing ladder, above homelessness and potentially above subsidized low-income housing, Tetlow said.

Link to UT article

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