I’ve had a harrowing 24 hours dealing with blog issues but we’re up and running now!
The regular feature here on Saturday mornings is Where To Move.
We saw the inexpensive new homes outside Phoenix, but it might be asking a lot to move to Arizona – although I think it’s worth considering. Then last week we saw the new homes being built by Davidson in Rancho Mirage but you may not want to plunk down $2,000,000+.
The grumbling has started that it’s not a good time to sell your home. It happens every time the casual observers see homes not selling, and today the count of active listings is higher and trending upward.
I don’t mind the grumbling. Let’s grumble about the facts!
By category:
More homes have been listed for sale this year: Six percent more than last year, and 28% more than in 2023. Hey, it means more choices for the buyers!
There are 21% more active listings today than this time last year. Even though there have been only 6% more total listings since January 1st, there were enough that hungover from December that the overall supply is larger than in previous years.
Last year, the additional supply was getting picked up – there were 185 pendings! This year, it looks like we’ve found the equilibrium point where too much supply starts to affect sales. Having 21% more homes for sale has the number of pendings down 15%.
Important point: Sales this year have been great, and pricing is healthy (so far)!
Sellers just have to do a minor tune-up in relation to the age and condition of their home (the older, the more work needed), hire a good agent, and put an attractive price on it. For those folks, it’s a good time to sell!
The National Association of Realtors published their support of the Clear Cooperation Policy yesterday, and added a change they called Delayed Marketing Exempt Listings.
As usual, they are trying to make everyone happy, resulting in nobody being happy.
They can’t even use proper punctuation. Isn’t there a hyphen missing?
I don’t fully know what their intention, but it looks like they opened the door to listing agents who want to advertise their listings on their own websites before putting them on the search portals. The #16 above is from the FAQs:
Listing agents are going to do what they feel is in their best interest, and in the best interest of their sellers (probably in that order, unfortunately). Until the DOJ lays down a specific law preventing them, off-market sales will keep happening.
Natalie has had her real estate license for a week, and she’s already figured it out:
I’ve been listening to the podcast Morning Brew Daily as a way to stay up to date on current events without having to read too many doomsday headlines. Happy to say it’s working!
A big topic lately for MBD and many news sources is the recent tariffs. There’s lots of talk about how it’ll affect prices on groceries, alcohol, cars, gas, etc., but how will it affect housing?
As another way to stay more educated, I subscribed to Bill McBride’s substack, a source for many of Jim’s blog posts. In this recent one, he talks about how the recent policies, mainly related to tariffs and immigration, will affect housing:
A few impacts:
Tariffs will lead to higher costs. I spoke to a contractor last week who hasn’t seen any price increases yet, but he said he had received “warning letters” from key suppliers about likely price increases. The uncertainty around tariffs also makes it more difficult to bid projects.
Less immigration will lead to less household formation. This suggests less demand for housing, especially for rentals.
An immigration crackdown would lead to fewer workers in construction. This would push up costs for construction. This would also lead to more rental vacancies.
This suggests higher costs for construction and less demand for housing.
That last part of the final sentence seemed crazy to me since I often hear about how there is a nationwide shortage of homes for sale and rent. So less demand?! That seems like a solution to our problem, right?
But upon thinking about it more, I think there’s just a massive shortage for attractive housing in desirable areas. And living in LA and working in San Diego real estate, I tend to be focused on some of the most desirable areas in the country.
I was just in the rental market looking for an apartment in West LA. My first day touring, I saw seven apartments in two hours and the options were rough. Most places were old, outdated, and/or dark, plus lacked the desirable add-ons: parking, outdoor space, updated appliances, ample storage, etc. (In LA, I would argue parking is a necessity, but to each their own.) Regardless, of those seven apartments, I finished the day thinking I could probably be happy in only two of them, alright in two others, and miserable living in the rest.
I toured these apartments about 3 weeks ago and almost all are still listed for lease. So my question remains, is there an actual shortage for housing? Or is Bill right and demand is starting to decrease?
Maybe there is sufficient housing in our areas but property upkeep and updating is getting too expensive so sellers/landlords can’t afford to make their listings attractive? And if they can afford to, they’re charging exorbitant prices because we’re in desirable areas and people want to live happily here.
I don’t have all the answers, but some food for thought!
And in case you’re wondering, my boyfriend and I signed the lease for one of the two apartments I said I’d be happy in and got the keys on Saturday – moving in this week!
Last year, the index really popped with all the early action in the first quarter.
This year, pricing got off to a slower start and with the additional inventory weighing on the market, there will be more sellers having to settle for less than they thought. But they will still be making huge gains over what they paid!
“Home price growth continued to moderate in January, reflecting a clear two-part story across the past year,” says Nicholas Godec, CFA, CAIA, CIPM, Head of Fixed Income Tradables & Commodities at S&P Dow Jones Indices. “The National Composite Index posted a 4.1% annual gain, with the bulk of appreciation—4.8%—occurring in the first half of the year. Prices declined 0.7% in the second half, as high mortgage rates and affordability constraints weighed on buyer demand and market activity.
“Among the 20 metro areas tracked by the Composite 20, New York City led annual gains with a 7.7% rise, followed closely by Chicago (7.5%) and Boston (6.5%). Tampa was the only market to post a year over-year decline, falling 1.5%. However, the second half of the year told a different story: San Francisco posted the largest six-month decline at 3.4%, followed by Tampa at 3.2%. Only four of the 20 cities managed to eke out price increases during this period—New York, Chicago, Phoenix, and Boston—highlighting broad-based cooling.
“Rising mortgage rates throughout the year elevated monthly payment burdens, which, combined with already high home prices, pushed affordability to multi-decade lows in many regions. This likely contributed to subdued activity in the back half of the year, with both buyers and sellers exercising caution. Inventory constraints also remain a challenge, particularly in legacy metro areas, where limited new construction continues to restrict supply.
“The strength in markets like New York and Chicago may reflect more normalized valuations relative to frothier regions, along with continued urban recovery trends post-pandemic. On the other hand, Sunbelt markets that experienced sharp run-ups earlier in the cycle—like Tampa and Phoenix—have seen the most pronounced slowdowns.
This was in the confidential remarks of a listing priced at $870,000, and the agent is still has it in the active bin. Hopefully for his sake, it’s in escrow by now!
Alternative title for this blog post: How Many Flippers Are Out There?
Trustindex verifies that the original source of the review is Google.
Jim & Donna Klinge helped us sell our home of 30 years in Ocean Hills. We were very happy with their service and would HIGHLY recommend them to anyone looking for an Honest, Knowledgeable, Skilled, Informed Efficient realty team. Both Jim & Donna were so helpful in different ways and complemented each others skills. Please refer to a more detailed review that we wrote on YELP. Thank You Both for all your help!!!
Jesse O'Hara
June 12, 2025
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A+ thank you
Lisa Tuomi
June 11, 2025
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Many years ago, we purchased a home in Carlsbad, using a realtor that was recommended to us - Jim Klinge. Fast forward to 2025, we recently had the privilege of selling 2 homes in Carlsbad, CA and didn't hesitate to reach out to Jim and Donna Klinge of Klinge Realty Group to guide us through the sales. The transactions were very different, each with its own unique situation, opportunities and challenges. From start to finish, Donna and Jim helped navigate the pre-sale preparation, the listing, showing of the house, buyer negotiations, the final close and all of the paperwork and decisions in between. What stands out with both transactions is the professionalism of Jim and Donna (and their team), wonderful communication (timely, relevant, concise), their deep understanding of market dynamics (setting realistic expectations), their access to top-notch contractors, and last, their ability to guide us across the finish line successfully. We wouldn't hesitate to use Jim and Donna in the future and highly recommend them for anyone looking to buy or sell a property in North San Diego County.
Jerry Meyer
March 28, 2025
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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
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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
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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
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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!
