A new Compass listing in South Encinitas, priced at $6,290,000:
Tucked away in seclusion, this 3606 sq. ft. 3-bedroom 3 bath New Construction Modern Hacienda masterpiece with two additional detached units exemplifies a unique combination of an ultra-modern interior and the warmth of a welcoming hacienda exterior. Nestled in the depths of Berryman Canyon, with the inviting Enclave development serving as the veritable drawbridge to the estate, this home exists as a fortress of relaxation. Upon arrival, all guests are unequivocally certain that this estate is the crown jewel of the neighborhood.
A top California lawmaker is proposing to spend $10 billion to help families buy homes in the state with some of America’s highest housing prices.
Democratic State Senate Leader Toni Atkins on Wednesday unveiled details of a proposal she’s pushing to create a revolving fund that would provide interest-free loans for up to 30% of the purchase price of a home for low- and middle-income households.
If implemented, it would be the largest program of its kind in the nation, according to the people who designed it. Proponents hope that it will be included in the state budget that must pass by June 15 and go into effect as soon as January. The aim is for it to eventually help about 8,000 families a year.
The proposal calls for the state government to share in any appreciation in the value of houses it helps purchase when they are sold and then invest those proceeds back into the fund.
“The purpose of this is to create a long-term endowment,” said Gene Slater, chairman of CSG Advisors, which advises public agencies on affordable housing and helped design the program. “We’re investing in the future value of the home so we can help other people.”
Under the proposal, California would spend $1 billion a year for 10 years. Participation would be limited to households making 150% of the median income in an area. There would be limits tied to a region’s median home price allowing home buyers in the most expensive markets such as the San Francisco Bay Area to benefit.
In Los Angeles County, households earning up to $120,000 a year could qualify for assistance, while in low-income areas like the agriculture-heavy Central Valley, that number would be closer to $107,000, according to data provided by the researchers who drafted the framework. Proponents want to target certain groups through outreach, including residents of largely Black and Latino neighborhoods and those with high loads of student debt.
The homeowner would repay the loan when they sell or refinance the home, along with a cut of the profit from any appreciation in value based on how much assistance the state provided. If the home price declines, Mr. Slater said, the state would be repaid if money is left over after the purchaser pays back their mortgage loan and recoups their portion of the down payment.
The program would be limited in scope to cover only about 2% of home sales volume statewide in an effort to avoid pushing prices higher.
Participants would be chosen on a first-come, first-served basis, with slots set aside for certain geographic areas and income brackets.
To become law, the proposal would have to pass both chambers of the Democratic-controlled state legislature and be approved by Democratic Gov. Gavin Newsom. A representative for Mr. Newsom declined to comment on the pending legislation. In a statement, Assembly Speaker Anthony Rendon praised Ms. Atkins’s work on the issue but didn’t say whether he supported her proposal.
Even though real estate is local, the homebuyer psychology tends to be similar across the country – mostly because people are people, and have similar reactions to every variable. When they see mortgage rates go from 3% to 5.5% in less than six months, it’s only natural to want to pause and see where this goes.
But the desperation among buyers – especially those who are out-of-towners and don’t own a home here yet – hasn’t changed, due to the low inventory. It is unsettling to see so few of the quality homes coming to market, and they want/need to stay in the game so they don’t miss out. It would take a flood of new listings to change that, which isn’t happening. At least not yet.
Let’s have the statistics help guide us on current market conditions.
1. We have considered the local real estate market to be ‘healthy’ when the active listings to pendings has been 2:1 ratio. Here are the detached-home listings between Carlsbad and La Jolla:
Monday:
Actives: 262
Pendings: 207
Thursday (today):
Actives: 262
Pendings: 202
The current ratio is very healthy, and the actives aren’t exploding. Last year at this time there were 330 active listings, so only having 262 homes for sale in an area with a population of 300,000+ people isn’t bad. The only startling part is that there aren’t more homes for sale!
2. Let’s talk absorption rate, another measuring stick for the health of the market. The historic norm for a healthy market has been a 6-months’ supply of homes for sale. In recent years, a 3-month supply has seemed to be more realistic, just because the supply has been limited.
What is it today?
There were 225 sales in April, so the 262 active listings is only a 1.2-month supply. We would need 675 active listings to have a three-month supply, which sounds impossible in the current environment.
3. How about the market time of the current pendings? Is it taking longer to find a buyer these days? Yes. The median days-on-market for homes sold in the early months of 2022 has been nine days. The current pendings have a median days-on market of 12 days, which isn’t alarming and still extremely low.
4. Have the number of actives and pendings been consistent in 2022?
Yes, especially the pendings:
So while there is talk about a shift in the market, it may just be a pause. Statistically, the market looks steady – there isn’t a surge of unsold homes, and there are still plenty going into escrow every week.
If there aren’t as many buyers looking, and there aren’t crazy numbers of offers, then it’s just going back to a more-normal market. Not normal yet, but heading that way.
The list prices have been on a rampage, and it’s probably time for them to stop going up so much every month. It was going to happen sooner or later, and that day has probably arrived – finally!
The smoke stack and the rest of the Encina Power Station have been demolished.
What does this mean for Carlsbad?
Before agreeing to support the approval of the new plant, the city negotiated an agreement with NRG and SDG&E to help ensure the project would provide the greatest local community benefit possible.
Some of the provisions of this agreement include:
A guarantee that NRG will completely decommission, demolish and remediate the old Encina Power Station site within three years of Encina’s retirement, at no cost to taxpayers.
NRG will turn over to the city several pieces of property surrounding the lagoon and the blufftop across from the plant. NRG will work with the city and the community to create a plan for the site’s future use.
What can go on the site?
The General Plan envisions redevelopment of the Encina Power Station, as well as the adjacent SDG&E North Coast Service Center, with visitor-serving commercial and open space uses to provide residents and visitors enhanced opportunities for coastal access and services, reflecting the California Coastal Act’s goal of “maximizing public access to the coast.”
The part that disrupters overlook is that the people doing the work need to be really good at advising and transacting real estate sales. It’s not as easy as it looks!
Real estate brokerage REX Homes became famous in recent years for spearheading an anti-trust lawsuit against Zillow and the National Association of Realtors, accusing them of being a ‘cartel’ to edge out non-MLS participants. But it appears that as of today, the company may no longer be in existence.
Numerous staff reached out to us directly to indicate the company’s last day was Tuesday and that a companywide call on Friday outlined the end of REX Homes.
Staff at the Austin and The Woodlands offices (both in Texas) have confirmed that as of today, the doors are literally closed. It is unclear what REX’s plans are for wrapping up any current contracts that haven’t closed.
The company’s website remains live with no notification of any service interruptions and there have been no changes to the faces that appear on the staffing page.
Many Glassdoor users have begun leaving reviews asserting that operations have ceased. To thicken the mystery, we’ve already seen several recent reviews disappear, but it is unclear if that is Glassdoor or REX’s doing.
Several LinkedIn users formerly employed at REX Homes are putting their #OpenToNetwork signs up, stating the company has closed – some indicate departments dissolving, others that the entire company has collapsed.
Will April be the peak month of buyers paying over the list price?
NSDCC Detached-Home Sales, % Closed Over List Price
Hard to imagine that there will ever be another month where nearly three-quarters of the home buyers end up paying over the list price!
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How about those $3,000,000+ home buyers!
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NSDCC Average and Median Prices
Month
# of Sales
Avg. LP
Avg. SP
Median LP
Median SP
Feb
224
$2,298,797
$2,257,334
$1,719,500
$1,758,000
March
252
$2,295,629
$2,260,524
$1,800,000
$1,825,000
April
357
$2,396,667
$2,403,962
$1,799,900
$1,828,000
May
300
$2,596,992
$2,581,715
$1,900,000
$1,994,500
June
348
$2,509,175
$2,537,953
$1,900,000
$1,967,500
July
311
$2,421,326
$2,442,738
$1,795,000
$1,855,000
Aug
268
$2,415,075
$2,438,934
$1,897,000
$1,950,000
Sept
278
$2,479,440
$2,445,817
$1,899,000
$1,987,500
Oct
248
$2,754,470
$2,705,071
$1,899,000
$1,899,500
Nov
199
$2,713,693
$2,707,359
$1,999,000
$2,100,000
Dec
189
$2,686,126
$2,664,391
$1,985,000
$2,157,500
Jan
140
$2,828,988
$2,855,213
$2,234,944
$2,240,000
Feb
156
$3,058,406
$3,104,854
$2,149,500
$2,386,500
Mar
206
$3,254,033
$3,342,384
$2,425,000
$2,625,000
Apr
224
$3,205,239
$3,267,447
$2,372,500
$2,575,000
Whoops – after the average sales price went up 7% MoM in January, 9% in February, and 8% in March, it dropped by 2% in April.
Same here – after the median sales price went up 4% MoM in January, 7% in February, and 10% in March, it dropped 2% in April too!
The median sales price could drop another 15% this year and still be in positive territory for 2022. Yet it would feel like a complete meltdown of epic proportions!
While it would be logical to think that anyone who is going to sell in 2022 would be expediting their plans due to higher mortgage rates, there still hasn’t been a big surge. We had one little pop when the weekly new-listings count hit 76, but they were back down to 59 this week – and the pendings have risen since.
As we head into the graduation season, and then into the peak vacation season, we might find that the 2022 selling season has already concluded. Maybe we’ll get a surge in July?
Mortgage Bankers Association Senior Vice President and Chief Economist Mike Fratantoni noted there are two items to watch from the Federal Open Market Committee following this month’s two-day meeting. “First, they announced a 50-basis-point increase in the federal funds target,” he said. “This change had been telegraphed clearly in recent speeches. The statement also repeated the language that the committee ‘anticipates that ongoing increases in the target range will be appropriate.’ In other words, we are far from done at this point.”
Fratantoni said the second, and perhaps most important news, was regarding the Fed’s $9 trillion balance sheet.
“As clearly signaled in the March minutes, the FOMC will move to allow $60 billion in Treasuries and $35 billion in MBS to passively roll off the balance sheet each month, gradually reducing these asset holdings from extraordinary levels,” he said. “The runoff will ramp up over the course of three months, which should allow markets to absorb this excess supply.”
Importantly, neither the statement nor the balance sheet plan repeated the goal of returning the balance sheet to all Treasuries, and there was no mention about the potential for active MBS sales. Musing about active sales has likely increased volatility in the MBS market recently, as investors do not know how to interpret the vague signals that had been given.
MBA now forecasts the fed funds target will reach 2.5%, the neutral rate, by the end of 2022.
“MBA is forecasting that mortgage rates are likely to plateau near current levels,” Fratantoni said.
“The financial markets have attempted to price in the impact of Fed actions over this cycle, and they are likely also pricing in the economic slowdown that will result. Once we are past this rate spike and associated volatility, MBA expects that potential homebuyers may be more willing to re-enter the market. Given how much higher rates will remain above the past two years, we do not expect refinance demand to increase any time soon.”
Trustindex verifies that the original source of the review is Google.
We sold a home with Jim and Donna and from beginning to end they were consummate professionals. Their initial walk through the property resulted in a list of items to be repaired or updated. They supplied a list of vendors and job quotes to do the repairs and updates. We originally wanted to sell ‘as is’ and just get it over with. They gave us a selling price for ‘as is’ and options for doing a few updates/repairs to doing it all with the selling price for each option. We agreed to do all they suggested and we sold for the exact price they predicted. For every dollar spent we got back more than $2 back in the selling price. And they got that price in a rising interest rate environment! Donna and Jim are extremely detailed and guide you through ever aspect of the sale. There were no surprises thanks to their guidance. We couldn’t be more pleased with their representation.
Thank you Donna and Jim,
Jerry and Mary
Heather Quejada
March 27, 2025
Trustindex verifies that the original source of the review is Google.
We have known Jim & Donna Klinge for over a dozen years, having met them in Carlsbad where our children went to the same school. As long time North County residents, it was a no- brainer for us to have the Klinges be our eyes and ears for San Diego real estate in general and North County in particular. As my military career caused our family to move all over the country and overseas to Asia, Europe and the Pacific, we trusted Jim and Donna to help keep our house in Carlsbad rented with reliable and respectful tenants for over 10 years.
Naturally, when the time came to sell our beloved Carlsbad home to pursue a rural lifestyle in retirement out of California, we could think of no better team to represent us than Jim and Donna. They immediately went to work to update our house built in 2004 to current-day standards and trends — in 2 short months they transformed it into a literal modern-day masterpiece. We trusted their judgement implicitly and followed 100% of their recommended changes. When our house finally came on the market, there was a blizzard of serious interest, we had multiple offers by the third day and it sold in just 5 days after a frenzied bidding war for 20% above our asking price! The investment we made in upgrades recommended by Jim and Donna yielded a 4-fold return, in the process setting a new high water mark for a house sold in our community.
In our view, there are no better real estate professionals in all of San Diego than Jim and Donna Klinge. Buying or selling, you must run and beg Jim and Donna Klinge to represent you! Our family will never forget Jim, Donna, and their whole team at Compass — we are forever grateful to them.
Lou F
March 27, 2025
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WeI had the pleasure of working with Klinge Realty Group to sell our home in Carmel Valley, and I cannot recommend them highly enough!
Jim and Donna demonstrated exceptional professionalism, offering expert guidance on market conditions and pricing strategy, which resulted in a quick and successful sale.
Communication was prompt and we were well-informed throughout the entire process.
For anyone looking for a dedicated and knowledgeable real estate team, look no further!
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William Sams
March 25, 2025
Trustindex verifies that the original source of the review is Google.
Donna and Jim Klinge of Klinge Realty Group have our highest possible recommendation. From Donna and Jim’s first visit to our house through closing their advice and counsel was candid and honest in all dealings. They kept us fully informed throughout the process. The house sold less than three days after listing with a two-week closing. My wife and I have sold several houses during our lives. This was by far the best experience. Klinge Reality is a premium service realtor. You can’t make a better choice for someone to sell your home fast and for top dollar.
Emily Hernandez
December 29, 2024
Trustindex verifies that the original source of the review is Google.
Donna and Jim provided exceptional support and professionalism throughout the entire process. We couldn't have been happier with their efforts. They made our house shine, and thanks to their expertise, it sold above the listing price in the very first weekend! Truly a fantastic experience from start to finish.
Jesus Adrian Sahagun
November 11, 2024
Trustindex verifies that the original source of the review is Google.
This year has been difficult on our family, mainly due to having to sell our home. Thankfully we knew God had a plan for us and working with the Klinge team was a key part of it. It was an obvious decision to work with them again after such an amazing experience when purchasing the same home we needed to sell. The challenge was, how will we do this in so little time with so much going on? Jim and Donna held our hand every step of the way. Whenever an unexpected issue arose they found and provided a solution. Never once did we feel pressured to make a decision and the Klinges were always reassuring after providing the information that the decision was ours to make. Despite the curve balls, they never panicked and exemplified the “can do” attitude, making us feel optimistic and taken care of. Their expertise and professionalism was superb. But of all the reasons to work with the Klinges, the most impactful and valuable is their compassion and genuine care for their clients. We pray that we can one day purchase our forever home and you better believe that Jim and Donna will be representing us - as long as they will have us of course. Thank you again Klinge team! Your execution, experience, and care are unmatched.
SABIHA PASHA
July 23, 2024
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Jim and Donna were fantastic! Jim understanding my needs, recommending potential places, pointing out the pros and cons of each property was invaluable. Then when the offer was accepted Donna’s organized guidance through the inspections, paperwork etc made the whole process seem effortless.
So grateful that I had them on my side!
Anu Koberg
July 13, 2024
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We first found Jim through his blog at bubbleinfo.com, which really showcased his knowledge of SoCal real estate. Since then we've done three transactions with Jim and Donna, and they are an incredible full service agency, with Jim's deep market insight and Donna's deft contract and project management. We trust them implicitly in their analysis and strategy, which is based on years of experience. They're always available and on top of things, and we strongly recommend them to anyone.
Bjorn Isachsen
July 10, 2024
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The Good
The Klinge Realty Group operates like a finely tuned machine, with a very personal touch. We contacted them on a Sunday and they were talking to us about our family and our needs on our living room couch the following day. They carefully listened to us and worked with us to identify the best and quickest path to listing within 2 weeks to take advantage of the low inventory conditions in our South Carlsbad neighborhood. They knew our tract specifically and had many previous sales there over the years - they came prepared with a thorough analysis of comparative sales and recommended a pricing strategy that they felt confident would yield offers the first weekend on the market.
The Great
Over the next two weeks Donna coordinated a range of vendors who she knew from experience could get the preparation to list work we needed done on time and with high quality. Our light tune-up involved excellent experiences with their stagers, landscapers, contractors, electricians, and plumbers. Throughout this period Donna's daily communication was clear, concise, and responsive. Any time we had questions Donna picked up the phone or texted immediately - but almost always, she answered our questions before we even knew we had them.
The Outstanding
We had a tricky situation with a shared fence that could have delayed our escrow. Donna used superb mediation skills to negotiate the terms of replacement and was personally on site with the fence contractor to make sure everything went smoothly. The fence looks great and escrow closed on time.
The Truly Exceptional
Our house came on the market on a Wednesday and between then and Monday morning Jim was personally at all three open houses. He was in constant communication explaining potential buyer reaction and strength. As he predicted offers began to come in on Saturday and each one was incrementally higher than the last. At the end we had 5 offers, 4 of which were over list, and the final accepted offer was $100,000 over list. In addition to being over list it included rent back terms that met our needs.
The Recommendation
For all of these reasons we would strongly recommend The Klinge Team to anyone wanting to sell in North County Coastal San Diego. I had been reading Jim's bubbleinfo.com blog for 15 years and knew when the time came to sell that he would be our first call. Jim Klinge is not your standard realtor. He is keenly aware of market conditions and sales strategies. And, works his tail off - though not as hard as Donna . At this point he's gone from realtor to friend and I plan to have him over to grill and chill at our new place to talk real estate, but also just about life and raising kids in San Diego. He's more interested in relationships than his sales numbers - and that's why his sales numbers are so high. We have already recommended the Klinge's to some close friends and another successful sale is on deck right around the corner...
Chris Shea
June 21, 2024
Trustindex verifies that the original source of the review is Google.
We recently had the pleasure of working with Jim and Donna from Klinge Realty Group to sell our house, and we couldn't be more satisfied with the experience. From the initial meeting, they listened attentively to our needs and provided invaluable guidance on specific improvements to get our home market ready.
Their responsiveness throughout the entire process was truly impressive. Anytime we had questions or concerns, they were quick to address them, ensuring we felt comfortable and informed every step of the way. What stood out the most was their team and extensive network of tradespeople, which made addressing any necessary repairs or updates seamless and stress-free.
Thanks to their expertise and dedication, our house sold quickly and at a great price. We highly recommend Jim and Donna to anyone looking to buy or sell a home. They are a fantastic team who truly care about their clients and deliver exceptional results.
