Donna asked what sellers might think about his video.
I hope they think that old Jim the Realtor is tracking the market closer than anyone and would be the ideal listing agent because of how he is able to utilize this research to take advantage of the market at hand:
Alternative headline: “Four areas so affluent that home prices and incomes are completely disconnected.”
Comparing the median sale price to house-buying power in all top 50 markets reveals that 4 markets are considered “overvalued”. “Overvalued” is defined by a market where the median sale price > house-buying power. Most markets still “undervalued.”
House-buying power is calculated by using a city’s annual median household income, assuming that a household spends one-third of their income on a mortgage, assuming a 5% down payment, and considering the current (Jan. 2022) 30-year, fixed-rate mortgage rate.
Before announcing their shocking divorce, Bill and Melinda Gates reportedly shelled out a whopping $43 million for an oceanfront estate in San Diego — the latest hot spot in California.
But it looks like Gates, 66, is the one to snag the idyllic property for his own use — and he’s customizing it to a T, local sources told The Post.
The initial six-bedroom, 3.5-bathroom estate, which spanned 5,800sf, has been completely demolished and locals claim it’s being rebuilt from the ground up at the direction of the Microsoft tycoon himself.
Gates has allegedly stopped by twice in the last few months with his two bulletproof suburban security details to check on the project, according to neighbors who are not happy about all the disruptions.
“It’s been a nuisance,” one neighbor said.
“They make a lot of noise, my baby can’t sleep,” another neighbor explained. “It’s become a real hindrance on the whole neighborhood.”
More photos and story here:
https://nypost.com/2022/03/23/bill-gates-is-turning-43m-mansion-into-bachelor-pad-nuisance/
This sold for $6,000,000 cash (5% over list) and 7-day escrow:
The NSDCC detached-home stats in the Jan 1st-to-March 15th period are remarkable:
| Year | |||||
| 2016 | |||||
| 2017 | |||||
| 2018 | |||||
| 2019 | |||||
| 2020 | |||||
| 2021 | |||||
| 2022 |
The 2022 median sales price is 34% higher than in the same period last year (which was +24% above 2020!)
The median sales price is 5.4% higher than the median list price.
Sales are holding their own, in spite of having around half of the ‘normal’ inventory!
We are in the midst of the fastest increase in mortgage rates in history.
It was only 6-8 months ago that home buyers were financing their purchase with a 30-year fixed rate in the twos. Now they are in the fours!
We had the lowest rates ever due to the pandemic. They aren’t coming back.
It is natural for home sellers to think it might be better to wait until later – especially if they tested the market with an aspirational price, and the home didn’t sell.
But the 30-year fixed rates are heading above 5%, which won’t bode well for buyers OR sellers.
What are other alternatives?
I’ve already seen adjustable-rate mortgages starting at 2.375% for ten years, up to $1,600,000 with a 10% down payment. When buyers compare those to a 30-year fixed payment, they will be very tempted.
We don’t need the frenzy to last forever – we just need to get comfortable with a post-frenzy market.
https://www.mortgagenewsdaily.com/markets/mortgage-rates-03222022
Real estate practices have been evolving with the frenzy.
The market used to be lively seven days a week, but that’s gone away. Looking at homes during the week is futile now, because the new listings tend to hit the MLS on Thursday or Friday with NO SHOWINGS UNTIL OPEN HOUSES ON SATURDAY AND SUNDAY!
By Monday, the listing agents shut it down with NO MORE SHOWINGS, NO MORE OFFERS.
It makes you wonder how the market will react to spring break/tax day.
All the NSDCC schools except Carlsbad are taking spring break between April 4-8, which will limit the action on those weekends of April 2-3 and April 9-10. Then income taxes are due the day after Easter, which is on April 17th. The Carlsbad spring break is April 18-22.
Will agents recognize the schedule, and alter their showing plans?
If not, will the lighter traffic cause those open houses attendees to think the market is getting soft?
The end of the frenzy might be forming right before our eyes!
Compass has been in business locally for four years! Last year, we averaged 7.5 sales per agent.
It’s remarkable how Compass and eXp came into a rather staid and unchallenged brokerage environment and hired away nearly 2,400 productive agents so quickly.
Numerically, the inventory isn’t getting any better yet:
NSDCC New Listings between March 1-15:
2018: 228
2019: 277
2020: 221
2021: 199
2022: 120
There will be a few more added to this year’s total but the homedemic continues – without additional inventory, the market will struggle to pick up momentum. The intensity of the fight over the quality homes could increase while other buyers have a hard time keeping their chops up, and become disinterested.
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Hat tip Leonard @Compass:
Today is the last day of Winter 2022, and as Spring arrives, consider the following:
1. Clean up winter debris, old leaves, fallen branches, etc.
2. Check your roof. Winter winds may have caused damage that requires your attention.
3. Clean out gutters: they probably collected all sorts of debris over winter.
4. Clean and/or replace AC filters.
5. Deep clean your dryer vent and other appliances.
6. Check your washing machine hoses: Maybe install a leak detector?
7. Clean and repair screens…the bugs are coming!
8. Pressure wash decks, fences, etc. and check for damages.
9. Fix cracks in sidewalks and driveways before rains cause more decay.
10. Paint! Some surfaces may be overdue for some painting.
11. Replace smoke detector batteries if they are not hard wired.
12. Sharpen blades for garden equipment and kitchen knives.
13. Check caulking around doors and windows to conserve energy.
14. Trim bushes/trees and clean thoroughly around any mechanical equipment.
15. Drain your water heater to clear out sediment.
Ongoing small maintenance items can prevent larger ones. Keeping any home in tip-top shape year-round is smart. Doing these things just before selling is wonderful for the next homeowner, but you may wish to enjoy a spiffy home too!
