Downtown Encinitas

Our new listing!

Be part of the vibrant Downtown Encinitas scene!  An easy walk to Moonlight Beach and the heart of downtown, this newer townhouse is owner-occupied and meticulously maintained!  The real white-oak hardwood floors are refinished to perfection and just the beginning of a great beach vibe!  High ceilings, granite & stainless kitchen with built-in fridge, family room with fireplace, views, and balcony, plus every bedroom gets their own full bath! 2-car gar + 2 spaces. PRIVATE ROOF DECK WITH PANO OCEAN VIEWS!

145 3rd St., Encinitas

3 br/3.5 ba, 1,705sf

HOA fee = 0

LP = $1,699,000

The Frenzy of 2020

Mortgage rates hit an all-time low yesterday!

Combine the improved purchasing power with the covid-delayed selling season and the lowest inventory in recent history, and we have full-blown frenzy conditions. Look at how July wound up:

NSDCC July Sales & Pricing – Preliminary

Year
# July Sales
Avg. $$/sf
Median SP
July Mortgage Rate
# Listings, 1st Half
2012
258
$365/sf
$850,000
3.55%
2,545
2013
297
$418/sf
$930,000
4.37%
2,790
2014
271
$451/sf
$1,018,000
4.13%
2,714
2015
321
$458/sf
$1,025,000
4.05%
2,871
2016
271
$504/sf
$1,110,000
3.44%
2,999
2017
261
$528/sf
$1,240,000
3.97%
2,725
2018
273
$544/sf
$1,280,000
4.53%
2,701
2019
281
$612/sf
$1,300,000
3.77%
2,725
2020
343
$620/sf
$1,420,000
2.99%
2,293

We had 342 sales, and there will be some late-reporters. Wow!

Has pricing caught up with the market conditions yet?

Del Mar One-Story With View

Our new listing of a gorgeous one-story home west of the I-5 freeway in Del Mar!

This is the primary residence of a long-time custom-home builder, and it shows!  There are several high-end finishes throughout the home, including the craftsman front door, deluxe custom kitchen with breakfast bar, hardwood floors, and a terrific master bath bathed in natural light!  Custom fireplace, dual-pane windows, and interior laundry room too. Enjoy the 8,600sf lot with sparkling pool, herb garden and pano easterly views day and night – wow!

12911 Biscayne Cove, Del Mar 92014

3br/2ba, 1,518sf  YB: 1972

LP = $1,495,000.  (we represent the sellers)

https://www.zillow.com/homedetails/12911-Biscayne-Cv-Del-Mar-CA-92014/16765774_zpid/

Highest-And-Best Round

We ended up with four offers on our latest listing, and all came in over list price.

I’m always going to do a highest-and-best round – not to work over the already-beleaguered buyers who have probably lost others and just want to get it over with – but to make sure everyone felt they had a fair shot to buy it.

The winners also took the opportunity to submit a SECOND love letter that out-shined their first when they mentioned that they just found out this week that they were pregnant again (they had pointed out in their first love letter than their first kid was about the same age as the seller’s little boy) and they wanted their family to grow up with others they knew who had just moved into the same neighborhood!  My sellers were pregnant when they bought this house so the connection was very real.

The agent who represents the winners was the first to call me about the listing, the first to show the house, and the first to write an offer – be ready!

The motivated buyers are on alert and will drop everything to come over for a look.  Yet how often do we still see few or lousy photos (and rarely a real video-tour), no showings for days or weeks after MLS input, or listing agents who are nowhere to be found?

Get Good Help!

Current Market Conditions

We are 24 hours into having our new listing on the market and it’s already been shown six times and we have three offers – and all are over the list price!

I heard a rate quote today of 2.55% with less than a point cost, which feels like free money.  As long as buyers can get a 2-something rate, the market should be extremely active!

Our New Listing

Big or small, we sell them all!

Enjoy unobstructed views from this upgraded gem in one of the quietest parts of Rancho Del Oro. The vaulted ceilings & numerous windows fill the home with lots of natural light, and once you get to the family room & kitchen, the view over the grassy backyard will make you start looking for your check book!  Upgrades include flooring, paint, kitchen cabinets/granite counters – this home is tuned up and ready!

Only $599,000 – a model match at 1763 Avenida Alta Mira sold for $627,000 last month – wow!

https://www.zillow.com/homedetails/1755-Avenida-Vista-Labera-Oceanside-CA-92056/16605049_zpid/

Coronavirus Eviction Moratorium

Tom T. and I were lamenting earlier this week about the plight of the mom-and-pop landlords due to the ban on evictions – because some tenants are taking advantage.  The ban might get extended too:

Senator Elizabeth Warren (D-MA) and Representatives Jesús “Chuy” Garcia (D-IL) and Barbara Lee (D-CA) introduced legislation on June 29 that would extend and expand a nationwide eviction moratorium to protect tenants who have been impacted by the coronavirus pandemic. The “Protecting Renters from Evictions and Fees Act of 2020” would extend the federal eviction moratorium until March 27, 2021, one year after the date of enactment of the “Coronavirus Aid, Relief, and Economic Security (CARES) Act,” and expand the moratorium to cover all renters. The bill would also prohibit fees, fines, and extra charges due to nonpayment of rent.

The federal eviction moratorium included in the CARES Act covers fewer than 30% of renters, and it is set to expire on July 25, 2020. Advocates warn of a surge in evictions and a spike in homelessness if Congress does not intervene. The “Protecting Renters from Evictions and Fees Act of 2020” aims to ensure renters will not lose their housing if they experience economic hardship during the crisis and need additional time to make payments.

“Without a significant federal intervention, there will be a rash of evictions and a spike in homelessness across the country,” said NLIHC President and CEO Diane Yentel. “Ensuring housing stability for all is both a moral imperative and a public health necessity. I applaud Senator Warren and Representatives García and Lee for introducing legislation today that will keep renters in their homes and give them the security and stability needed to stay safe throughout the duration of the pandemic.”

Read Senator Warren’s press release at: https://bit.ly/2Bvj5Xz

Read a fact sheet on the bill at: https://bit.ly/3eTk8Pu

If you, or someone you know, is thinking about disposing of a property that is tenant-occupied, contact me today.  I have a wealth of experience in convincing tenants to move!

Why Home Prices Will Keep Rising

Over the history of real estate, buyers have determined the market.

They decide how much education and investigation they need to complete before making what is now the biggest decision of their life, and then they proceed when ready – or when they see an attractive house, hopefully in that order!  There isn’t much education available on how to do it, so people just trust their gut and start looking around – even those who already own a home.  HGTV makes it look easy (see three, and buy one), and the disrupters keep promoting that their agent-lite program is all you need.  In a hot market, the investigation/education phase usually gets obliterated.

You’d think it would cause people to Get Good Help, to compensate – and many do (thanks!).

But once on the playing field, the buyers are split into two categories:

  1. Those who own a home here now, and are trying to do better.
  2. Those who don’t own a home here, and want/need to get in.

Buyers from the second category are determining the market.

They see every decent home get snatched up by those who got desperate sooner.  It becomes a race for those newcomers to get desperate enough so they can compete with those ahead of them.

Buyers in Category 1 already have it good.  Even if their home doesn’t suit their current needs, it’s what got them here.  The property taxes are lower, the neighborhood is a known quantity, and they are comfortable.  Are they going to rise to the same desperation level as those who don’t own a home here yet? It’s doubtful, even if the Prop 19 passes and sellers can take their property-tax basis with them anywhere – nobody is desperate to leave coastal San Diego.

It’s what is causing the inventory to be so thin, and why I’m convinced it’s only going to get worse.

Consider these factors:

  1. Baby boomers are older now – if they haven’t moved yet, it’s probably too late.  They will make do with their current residence, and make it last for the duration.  Kids will inherit, and one of them will occupy as their primary residence – and the cycle of low inventory for sale will continue for another generation.
  2. San Diego is a mid-range market – there are a number of more expensive areas that makes us look cheap, relatively.  It’s those move-down buyers from affluent areas who are filling up Category 2, making it very tough for locals to compete, which prevents them from moving…..which means less inventory.
  3. There aren’t any new-home tracts left to build in Coastal North County.
  4. There will be massive pressure on the Fed to keep rates low for years to come.
  5. The business is being dumbed-down for easier consumption, not smarter.

These factors will keep the inventory low, and competition high for a long time.  It also means that the deliberate, informed buyers will keep getting run over by those who are just in a hurry to buy a house.

The old adage of buyers determining the market is being snuffed out.

Sellers can name their price now, and there is probably someone who will at least consider paying it.  Until unsold listings are stacking up to the rafters, sellers will ensure that prices keep creeping upward.

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