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Frenzy Monitor By Area

The reason for breaking down the active and pending listings by zip code is to give the readers a closer look at their neighborhood stats.

In the recent years prior to the pandemic, the actives/pendings in Rancho Santa Fe ran at a 10:1 pace.  Nobody is in a hurry there, they don’t have to sell, and they’re not going to give it away.  Those days appear to be coming back.

The median list price of those RSF actives is $5,995,000 – is anyone going to feel sorry for them? Probably not. Does it reflect what is going on in the rest of the area? Not really – the other areas are mostly around a 2:1 ratio (except La Jolla) which has been our standard for a healthy market and pretty good, all considered.

In 2020, we had 400+ pendings from June 22nd to November 30th – with a peak of 491 pendings on September 7, 2020.

Frenzy Monitor

Let’s break down the active and pending listings by zip code is to give you a closer look at the neighborhood stats.  We’re going to have more active listings simply because the the list prices were all based on red-hot frenzy conditions (comps + 5% or more), and we’re past the red-hot days.

NSDCC Actives and Pendings

Town/Area
Zip Code
Feb 27
Mar 16
May 5
Jun 20
Cardiff
92007
5/7
6/4
7/7
13/5
Carlsbad NW
92008
6/9
8/10
15/10
27/10
Carlsbad SE
92009
15/29
8/33
20/27
47/25
Carlsbad NE
92010
1/5
2/6
7/14
17/11
Carlsbad SW
92011
2/11
4/12
8/16
19/19
Carmel Valley
92130
10/31
10/30
22/25
50/18
Del Mar
92014
15/32
17/10
24/13
30/8
Encinitas
92024
15/32
17/28
24/32
46/26
La Jolla
92037
53/38
55/35
51/32
72/24
Rancho Santa Fe
92067
45/22
47/24
49/22
52/25
Rancho Santa Fe
92091
2/2
5/2
2/0
3/2
Solana Bch
92075
6/6
3/10
9/7
12/5
NSDCC
All Above
179/205
182/204
238/205
388/178

The selling season started early in 2022, and was cooking by the end of February. Let’s group the different areas based on how their pendings are holding up.

Frenzy-ish:

Carlsbad SW – A few houses finally went up for sale, and buyers responded.

Rancho Santa Fe – The active listings aren’t growing like in the other high-end areas of Del Mar and La Jolla, and the number of pendings are very impressive. It was once normal when the Ranch had a 10:1 ratio between actives and pendings!

Normal-ish:

Everyone else, except……

Crash Zone

Carmel Valley – which has always had more pendings than actives over the last two years – and sometimes twice as many pendings!  While having 50 actives and 18 pendings anywhere else would be a win, in the CV it feels like a meltdown.

Here they are:

(I tried to sort those by price order, but all they have is sort by date added)

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This nonsense about every buyer paying way over list price has to stop.  If the SP:LP was around 100% we’d be elated, yet it was 111%, 109%, and 109% in the February-April stretch.

So far in June, the SP:LP is 107% for the 104 detached-home sales between Carlsbad and La Jolla!

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We can also track the average market times too.  Any upward trends here would indicate market slowing – it’s early so nothing too startling yet:

The hottest of the red-hot was in 2020, when we had 400+ pendings from June 22nd to November 30th – with a peak of 491 pendings on 9/7/2020. Today we have 178 pendings.

San Diego: Buyers More Critical, But Stable

This company surveys new-home and resale agents every month, and this report confirms more of what we’ve been experiencing:

  1. A few more listings (but NSDCC listings are dropping off now).
  2. More listings not selling/buyers getting pickier.
  3. Buyer traffic is steady, and better than expected.

The Home Listings Index dropped from 70 to 37.5, which means the number of listings increased, which is bad for the new-home agents.  But for resale agents, it’s good!

NSDCC Year-to-Date

This year, we are ahead of both of the previous years in total sales, in spite of having 14% fewer listings – and prices being 30% to 40% higher!

NSDCC Listings & Sales, Jan 1 to Aug 31

Year
# of Listings Between Jan 1 – Aug 31
# of Sales
S/L %
Median SP
2019
3,585
1,922
54%
$1,310,000
2020
3,245
1,846
57%
$1,409,677
2021
2,805
2,245
80%
$1,875,000

Prices probably need to go a bit higher to slow this thing down!

The NSDCC Weekly Pendings are tracking similar to 2019, so there should still be some gas in the tank:

Inventory Watch

Did you get concerned about the pending index falling another 10% last week?

The U.S. housing market is suffering from its lowest supply in history, and that is taking an increasingly hard toll on sales.

Pending home sales, a measure of signed contracts on existing homes, fell a wider-than-expected 10.6% in February compared with January, according to the National Association of Realtors. Sales were 0.5% lower year over year.

“The demand for a home purchase is widespread, multiple offers are prevalent, and days-on-market are swift,” said the Realtor’s chief economist, Lawrence Yun. “But contracts are not clicking due to record-low inventory.”

The pendings between La Jolla and Carlsbad are doing just fine. In spite of the total number of NSDCC homes for sale being fewer than usual, people are still buying at a torrid pace:

Our market was helped by having more homes for sale.

New NSDCC Listings in the First Quarter:

2019: 1,278

2020: 922

2021: 1,081

After the first two months of this year, the total number of NSDCC new listings was 26% behind 2019.

But we had a big March, and the number of new listings in 1Q21 is only 15% behind those in 2019.

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NSDCC Actives & Pendings

Previously we experienced a healthy market when actives outnumbered pendings 2:1. Then as the market heated up, we got used to the 1:1 ratio. Now we have areas where the ratio is more than 1:2!

NSDCC Detached-Home Active and Pending Listings

Town or Area
Zip Code
Actives
Pendings
Cardiff
92007
10
14
NW Carlsbad
92008
15
24
SE Carlsbad
92009
20
48
NE Carlsbad
92010
4
11
SW Carlsbad
92011
4
19
Carmel Valley
92130
25
38
Del Mar
92014
32
25
Encinitas
92024
36
48
La Jolla
92037
95
45
RSF
67+91
87
50
Solana Beach
92075
8
9
NSDCC
All Above
336
331
West RB
92127
24
63
Scripps Ranch
92131
6
25

What can buyers do?

Going inland doesn’t help – the 92127 and 92131 are hotter than ever.

Just go up in price – La Jolla is nice this time of year!

We will re-visit these numbers in the coming months.

NSDCC Pendings Overtake Actives

This morning we have more homes in escrow than we have for sale!

NSDCC Detached-Home Listings

Listing Status
# of Listings
Median List Price
Active
352
$3,950,000
Pending
353
$1,925,000

Once upon a time I was discussing the actives/pendings relationship with local agent Peter B.  He agreed that a 2:1 ratio of actives to pendings was a sign of a healthy market.  If 2:1 was healthy, what is 1:1?

One thing that’s happening is that the action is rising into the upper price ranges. Today we have 94 homes in escrow that are priced over $3,000,000, which I doubt we’ve ever had before.

If we don’t see a surge of more listings, the pendings could extend its lead in the coming days/weeks!

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Inventory Watch

We are getting close to a remarkable event – having more pendings than actives.

Here’s the current scorecard – 359 Actives, and 338 Pendings!

NSDCC Actives and Pendings

Price Range
Active Listings
Avg $$/sf
Pending Listings
Avg $$/sf
0-$1.0M
6
$424/sf
33
$640/sf
$1.0M – $1.5M
22
$677/sf
70
$605/sf
$1.5M – $2.0M
45
$686/sf
87
$621/sf
$2.0-$3.0M
65
$871/sf
68
$759/sf
$3.0M+
224
$1,404/sf
87
$1,020/sf

WE HAVE MORE PENDINGS THAN ACTIVES IN EVERY CATEGORY EXCEPT OVER-$3,000,000!

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NSDCC January Performance

When you look at the general data, the 25% dip year-over-year of January listings doesn’t look so bad – especially on a graph.  Heck, we’re in the middle of a pandemic!

But look how it is playing out:

NSDCC Detached-Home New Listings

Price Range New Listings in January # of Those Pend/Sold Pend/Sold Median DOM
Under $1.5M
85
75
5
Over $1.5M
189
98
6

The lower-end is smoking hot where virtually all listings have found a buyer (88%), and for the higher-end to have most of the January listings go pending already is astonishing!

This has to be the best performing market of all-time!

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Inventory Watch

The pendings count has been mirroring the actives pretty closely since mid-October, with the best example during election week when they moved about the same amount in opposite directions.

With fewer listings and more sales, the failure rate this year has been lower than ever. Historically we’ve had around 40% of listings NOT sell, but this year it’s closer to 30%:

Sales/Listings

2018: 2,814/4,864 = 0.58

2019: 2,838/4,773 = 0.59

2020: 3,106/4,480 = 0.69 (+17% yoy)

Though all prices ranges have benefited, the action has been heaviest on the lower-end.

We have 87 NSDCC homes for sale UNDER $2,000,000 today, and 338 OVER!  The Median is $3,692,500!

Get Good Help!

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