These were my notes that expand on the previous blog post.
This is the Market Lull.
It’ll go for at least another month or two and for many it might last until January.
Hardly anyone knows what to do. Buyers don’t mind waiting longer – they keep hoping that something good would happen. Same with sellers. Agents who have only known a strong seller’s market (last 15 years) are getting anxious though.
Reducing the price by 5% is the minimum to impress buyers.
Price Reductions – When They Reduce The Price Sends A Signal
Price reduction in first month: No showings or offers and seller is motivated (and maybe panicked) and/or the listing agent is great at reading the room….especially if it’s a 5% drop.
Price reduction in second month: Normal, and needs to be 5% just to keep up.
Wait 3-4 months for first price reduction: Seller just starting to get it, but buyers have been ignoring the listing for 2-3 months. Too late to be able to sell this year.
No reductions: Seller doesn’t care and neither does the agent, or the agent is weak. By now, anything might happen with them so wake them up with an offer.
Rule of thumb: in the buyer’s mind, the value is going down about 1% per week. After 10 weeks, sellers should reduce drastically or quit. All you will get is lowballs.
How to identify agents to lowball who don’t have a sales skill set and need a deal to fall in their lap. They ask: “Do you have any questions?”
Buyers can ask this question at open houses: “Do you think it’s worth it?” How the agent answers that will tell you everything about your chances of getting a deal.
Here’s a formula that works well for buyers and sellers (who are smart to lower their price just to keep up). Listings that don’t lower their price will stale quickly.
I guess it makes sense that Riverside County would be the leading destination for those leaving San Diego – heck, it’s right next door. Before you commit to moving there, drive up the I-15 at 5pm on Friday – it’s a parking lot!
The top four areas are the same on both lists – most people don’t move too far.
Howard Hanna Real Estate Services is the largest family-owned-and-operated real estate brokerage in the United States with 15,000+ agents and staff in 471 offices. (Compass has 33,000+ agents and 400+ offices). Their owner feels the same way about the Clear Cooperation Policy – that it will lead to anti-trust lawsuits.
I think it is inevitable that Compass, Hanna, and other large brokerages leave the NAR/MLS and go on our own – as Hanna describes at the bottom here – and retain a national presence powered by homes.com.
An excerpt:
Hanna believes MLSs should make their own participation rules rather than adopting a nationwide policy from NAR that mandates a particular way of doing business.
“[That] makes all of us complicit in that form of business if we belong to MLS,” he said. “To me, that looks like antitrust, and that looks like we’re all having to do something if we want to participate. I think there should be individual participation rules.”
None of the MLSs who said they had to follow NAR’s rules had thus far threatened fines, according to Hanna. But MLSs across the country have instituted hefty fines, some in the thousands of dollars, for violations of the CCP.
“We won’t pay the fines,” Hanna said. “We don’t think our agents should pay the fines if a seller has choice.
“What does that lead to, if we don’t pay the fines, then, okay, they’re going to say we can’t participate in the MLS? Well, is that really what they want to do? They want to have less inventory in the MLS? Do they want to destroy the MLS?”
Hanna has previously said his company was considering leaving the MLS due to NAR’s mandatory MLS policies.
“We could still put everything on our website and say to cooperative brokers, you guys can come in, look at the homes here, and we’ll still cooperate with you,” Hanna said.
I have curated this group of NSDCC one-story listings for several years now. If you want to subscribe to this feed, either send me your email or you can set up an account at compass.com.
I mention it today because I think Julie’s listing on Fosca (second listing) has a very attractive price for a newer one-story home on a decent lot with no HOA in the best school district around with the full 180-degree pano ocean views!
You can also find this feed every day in the blog’s right-hand column! Or the share button is in the upper-right hand corner >>>>
Usually Donna writes the introduction to our newsletter, but I took a stab at it today:
Hi, Jim here!
I’ve been asked to describe the current market conditions as we enter summer.
Our local market is defying the usual labels. If it were a pure buyer’s market, then home sales would be suffering – but sales are as strong as they were last year.
Here’s a new label – Sellers Go First.
Gone are the days when a potential home seller could grab the highest sale nearby and add 5% or so to determine their list price – and buyers be willing to pay it.
Buyers are being patient, and are comfortable waiting for a new listing to sit for weeks to test its price. The longer it goes, the lower they offer, if at all. It’s a real headfake too, because a new listing will get visitors, but almost all are just looking, not buying. For them, it feels safer to stay on the fence!
But the superior homes that are attractively-priced are selling briskly. Thirty percent of this month’s sales between La Jolla and Carlsbad have closed over their list price!
The market is fine, and flowing. Jump in!
Are you thinking of moving?
Let’s discuss timing – call or text me today at 858-997-3801
Everything went our way – except the higher mortgage rates.
The House of Representatives early this morning passed the One Big Beautiful Bill Act that delivers significant wins for the real estate sector, reinforcing tax provisions long championed by the National Association of REALTORS®.
NAR’s advocacy team successfully secured its top five tax priorities in the bill, including an enhanced small business tax deduction, a strengthened state and local tax deduction, and protections for the mortgage interest deduction. The bill also makes the current lower individual tax rates permanent and increases the child tax credit, moves that could help increase homeownership access for more American families.
In addition to NAR’s top tax priorities, the bill includes a broad range of other NAR-supported provisions—such as enhancements to the Low-Income Housing Tax Credit, estate tax certainty, renewed Opportunity Zone incentives, and the creation of tax-advantaged child investment accounts that can be used for qualified expenses of the beneficiary such as first-time home purchases—all of which strengthen housing affordability, investment, and generational wealth.
“We appreciate House leaders for taking this important step with a bill that supports hardworking families and strengthens the real estate economy. With lower tax rates, SALT relief, and new incentives for small businesses and community development, this proposal brings real benefits to everyday Americans,” says Shannon McGahn, NAR executive vice president and chief advocacy officer.
“While significant changes are possible as this bill moves to the Senate, NAR will stay closely engaged with lawmakers to ensure real estate remains a central focus,” McGahn says. “We are committed to advocating for provisions that expand opportunity, support homeownership, strengthen communities nationwide, and put the American Dream within reach for more families.”
This is what our society has become – just believers of headlines. I read the whole article, and it only took one minute to find how the study was conducted.
It’s based on groundwater samples taken in Wisconsin and Minnesota!
NONE of our drinking water around here comes from groundwater wells!
The reporting gets worse.
The Newsweek article states that “California had the highest number deaths with 4,289”, with no mention of the difference in population.
We can’t get caught up in the hysteria.
I told the seller that buyers are going to think we are damaged goods after two cancelled escrows, and even though all three offers received were higher, they don’t mean anything today. Let’s lower the price again to keep the urgency up:
At our previous list of $1,150,000, any new offers would probably start at $1,100,000.
We’re going to burn the $25,000 one way or another, so let’s lower the price to $1,125,000 and get our money’s worth. Buyers will probably still start at $1,100,000.
Then we scheduled open houses for Friday, Saturday, and Sunday too, which should provide some FOMO.
As the listing agent, I’m going to recommend bold and decisive actions be taken by sellers to differentiate us from the rest of the pack.
This is the new market. It’s way different than during the covid frenzy when buyers always stuck because they were just glad to win the bidding war and get their 3% mortgage. Today, buyers are skittish and look for ANY reason to stay on the fence.
Your agent needs to know what to do! Get Good Help!
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
Trustindex verifies that the original source of the review is Google.
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!
---
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
Trustindex verifies that the original source of the review is Google.
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
Trustindex verifies that the original source of the review is Google.
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
Trustindex verifies that the original source of the review is Google.
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.
