When people are looking for the perfect ‘forever’ home that will last them for a lifetime, any additional cost isn’t going to phase them – or at least it won’t affect the affluent folks. Most are making it up elsewhere when they sell their previous home or rental properties, inherit big money or receive a gift, and/or sell their businesses/stocks or other assets and just want a trophy property.
If they weren’t bothered by home prices rising 60% to 80% over the last two years, a measly 2% increase in the mortgage rate isn’t going to stop them.
My tours of mid-range coastal suburban homes that sold for a big pop over list are slowing. But it’s mostly due to the lack of inventory – I wish I could do more!
The February month-over-month increase was the highest ever, but it feels like ancient history:
San Diego Non-Seasonally-Adjusted CSI changes
Observation Month
SD CSI
M-o-M chg
Y-o-Y chg
Jan ’20
264.04
+0.2%
+5.1%
Feb
265.34
+0.5%
+4.6%
Mar
269.63
+1.6%
+5.2%
Apr
272.48
+1.1%
+5.8%
May
273.51
+0.4%
+5.2%
Jun
274.91
+0.5%
+5.0%
Jul
278.00
+1.1%
+5.4%
Aug
283.06
+1.8%
+7.6%
Sep
288.11
+1.8%
+9.4%
Oct
292.85
+1.6%
+11.5%
Nov
295.64
+1.0%
+12.3%
Dec
297.52
+0.6%
+13.0%
Jan ’21
301.72
+1.4%
+14.3%
Feb
310.62
+2.9%
+17.1%
Mar
320.81
+3.3%
+19.1%
Apr
331.47
+3.3%
+21.6%
May
341.05
+2.9%
+24.7%
Jun
349.78
+2.6%
+27.2%
Jul
355.33
+1.6%
+27.8%
Aug
357.11
+0.5%
+26.2%
Sep
359.88
+0.8%
+24.9%
Oct
363.80
+1.1%
+24.2%
Nov
367.62
+1.1%
+24.3%
Dec
374.48
+1.8%
+25.9%
Jan ’22
383.92
+2.5%
+27.2%
Feb
401.45
+4.6%
+29.2%
“U.S. home prices continued to advance at a very rapid pace in February,” says Craig J. Lazzara, Managing Director at S&P DJI. “The National Composite Index recorded a gain of 19.8% for the 12 months ended February 2022; the 10- and 20-City Composites rose 18.6% and 20.2%, respectively. All three composites reflect an acceleration of price growth relative to January’s level.
“The macroeconomic environment is evolving rapidly and may not support extraordinary home price growth for much longer. The post-COVID resumption of general economic activity has stoked inflation, and the Federal Reserve has begun to increase interest rates in response. We may soon begin to see the impact of increasing mortgage rates on home prices.”
(The San Diego seasonally-adjusted index was 404.45)
Congratulations to Kelly and team for their new listing of this iconic 6,329sf masterpiece on the bluff by Wallace Cunningham – the same architect who designed the Razor House in La Jolla (that Alicia bought):
An interesting phenomenon that has been occurring more lately is the delay in offers being submitted.
I’ve heard agents say it’s because people are being smarter about waiting until closer to the offer deadline so the listing agents have less time to shop them around, and that buyers are being more deliberate in checking their finances.
However, the more time that passes between the initial open house and the submission of offers, the less likely buyers will pay wildly over the list price….or even offer at all.
The pool of buyers who are willing to pay $500,000-$1,000,000 over list price has to be diminishing, and will it be long before the only buyers left are those who want to pay a fair price?
Typically there are a flurry of closings in the last week of the month. If there isn’t a corresponding uptick in new pendings this week, we could see the graph (at the top) look remarkably different next Monday!
The network insinuates that auctions are giving houses away, but the initial prices seem ridiculous:
Dr. Alex Khadavi, a celebrity skin doctor in Los Angeles, was hoping for a quick sale and big payday when he finally completed a 21,000-square-foot mansion that took seven years and tens of millions of dollars to develop.
But a little over a year after he listed it for sale — with a price tag featuring a string of lucky 7s at $87,777,777 — the doctor’s dreams of cashing out are being crushed by a mountain of debt, unpaid contractor bills, bankruptcy court proceedings and trouble with the law.
Now he’s running low on luck, money and time.
Khadavi, who filed for Chapter 11 bankruptcy protection about two weeks after putting the home on the market, hasn’t lost his sense of humor, though.
“The home is sandwiched between billionaires, and I’m the poorest guy on the block,” he told CNBC with a laugh.
In an era where 50% or more of the homes for sale receive multiple offers, yet half or more of the sellers don’t ask the buyers to improve their offer – they just grab one instead? Money is being left on the table coast-to-coast:
We make sure you don’t end up on this list – Get Good Help!
Speaking of gifts from buyers, we asked our sellers if buyers used any unusual tactics to try to win a bidding war, and the results were shocking. When flattery and (possibly) bribery didn’t work, some buyers turned to more nefarious tactics.
Among the troubling experiences sellers reported, the highlights include:
An offer of two fully paid, all-inclusive tickets to a resort in Hawaii, presented over dinner
Offering a $10,000 signing bonuses if the offer was accepted by midnight
Buyers offering to buy toys and gifts for the seller’s children
Three weeks at a time share in the Bahamas
A buyer lying to the seller and saying they knew the seller’s grandmother
A buyer texting a seller each morning to ask if they had received any better offers
Buyers promising one price to sellers but writing their offers at a significantly lower price
Telling the seller a home was on ancestral lands
Heartfelt personal letters in hopes of tugging on a seller’s heart strings
An offer to purchase the home with Bitcoin
Attempted to give the seller exotic animals and a car to accept their offer
Just some of the tactics sellers reported buyers using to have their offer chosen include:
A buyer lying to the seller and saying they knew the seller’s grandmother
A buyer texting a seller each morning to ask if they had received any better offers
Buyers promising one price to sellers but writing their offers at a significantly lower price
If you’re worried about wildfires and earthquakes…..you can always move to Detroit!
Millions of Americans are living in communities with precarious climate conditions, in houses that feel overpriced. There is a solution for many of these people, though:
Move to one of the so-called climate havens.
Climate havens or climate destinations are situated in places that avoid the worst effects of natural disasters and have the infrastructure to support a larger population. Many of these legacy cities are located in the Northeast.
Jesse Keenan, associate professor of real estate at Tulane University, named the following cities as possible climate havens:
Asheville, North Carolina
Buffalo, New York
Burlington, Vermont
Detroit, Michigan
Duluth, Minnesota
Madison, Wisconsin
Milwaukee, Wisconsin
Minneapolis, Minnesota
Pittsburgh, Pennsylvania
Rochester, New York
Anna Marandi, who served as the program manager of climate resilience and sustainability at the National League of Cities, added two other places to the safe haven list: Ann Arbor, Michigan and perhaps surprisingly, Orlando, Florida.
Orlando makes the cut, Marandi said, because the city has introduced measures to decarbonize. While the natural environment, such as being a noncoastal city, is an advantage, cities can “earn” the designation by working to provide benefits like affordable housing and being committed to economic sustainability.
“I see climate migration as an opportunity for these cities to avoid the mistakes of urban sprawl,” Marandi said. “They often have a vibrant, walkable downtown that might just need a little bit of revitalization.”
Keenan also stressed that climate haven cities need to help their own residents, which in turn will attract more climate migrants.
“This isn’t we’re going to build a community for tomorrow,” he said. “We’re going to build a community for today. And that’s going to be the foundation for the building of a community for tomorrow.”
After seeing two homes go off for more than $4,000,000, buying this for $3,100,000 probably doesn’t seem so bad. But the house next door closed for $2,450,000, and the highest sale on this street was $2,220,000 twelve months earlier and was a newer Davidson home up around the bend:
Location is everything! Enjoy this end-of-culdesac gem that is just steps from TPHS (so close you won’t need to buy your kid a car!) and an easy stroll to Del Mar Highlands & One Paseo! Totally renovated with newer kitchen & baths, stainless appliances including 6-burner stove, Pella Pro-line designer wood windows, new paint & carpet, new light fixtures & LEDs, and new landscaping!
A link to our before and after photos to see our prep work:
The consumers’ fascination with the zestimates has never been greater! With home prices detached from comps, the zestimate is the only other measuring stick for both buyers or sellers – right or wrong!
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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
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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!
---
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!
