2021 Frenzy
One of the best videos ever to describe the frenzy conditions – it’s cooled off a little since April, 2021!
Over List, August
The trend of over-list sales is already heading for the off-season. There were just 36 sales (20%) that closed ABOVE the list price last month. Of those 36, there were 16 that paid $100,000+ over the list price.
In contrast, there were 66 sales (37%) that sold for at least $100,000 UNDER the list price.
Man, those are treacherous market conditions! Do you offer $100,000 over or under?
Get Good Help!
Home Sales and AI
The AI – generated world is coming to real estate sales….soon! But is it a good thing for you? I can be reached at 858-997-3801.
Toll + Hotel
We knew that Toll Bros are building 42 homes next to the Chevron gas station on La Costa Avenue and the freeway. They are doing the same treatment as the builder did at Halia – burying the contaminants instead of removing:
David Hill, a Batiquitos Lagoon Foundation board member who specializes in water quality management, criticized the developers for encapsulating rather than removing what he said were 6,300 tons of hazardous materials, including organochlorine pesticides, buried beneath the planned homes.
Another surprise is the planned hotel to be built next door:
https://thecoastnews.com/encinitas-advances-two-proposed-la-costa-avenue-developments/
The guy doing the hotel has designed quite a few homes too. Here’s one:
Hat tip to just some guy for sending this in!
Wait For Me
Between 1972-1974, Todd produced the first three Hall and Oates albums.
Agents’ Comments on New Rules
Lance asked how the new realtor rules were affecting agents – here are responses from around the country that I clipped from two different email threads. Thanks Lance!
SB 450
Building ADUs is one thing – being able to sell them separately would be a game-changer. To sell them, either the group needs to be condo-ized or the lot needs to be officially split. This new law says that if the governing entity doesn’t approve your plan within 60 days, the lot split is automatically approved. All it will take is for a surge of applications to bog down the approval process and there could be lot splits happening that shouldn’t be. It was also noted in the article’s comments that Toni’s spouse is a developer.
As the state Legislature wrapped up its regular session, lawmakers passed legislation authored by Sen. Toni Atkins of San Diego to close loopholes in Senate Bill 9 to encourage new housing in single-family neighborhoods.
The two-year-old SB 9 allows property owners to split their lots and build up to four units on a single-family parcel. It has faced pushback from many localities, and Atkins’ new Senate Bill 450 attempts to circumvent that.
“Since the passage of SB 9, we have seen local jurisdictions impose overly-burdensome requirements on homeowners seeking to construct more housing in their communities with SB 9 duplexes and lot splits,” said Atkins, who is president pro tempore emeritus of the state Senate.
“SB 450 will ensure that homeowners have the tools they need to build additional housing on their property, creating intergenerational wealth and providing access to more rental and ownership opportunities for Californians,” she said on Thursday.
The updates to the original law include:
- Requiring local governments to either approve or deny an application for a new SB 9 unit or lot split within 60 days.
- Requiring a local government to provide homeowners with a reason and remedies if their application is denied.
- Deleting unnecessary and redundant language relating to the demolition of a property and maintaining key tenant protections.
- Requiring consistency in local zoning, subdivision, and design standards to prevent governments from imposing overly burdensome requirements.
The legislation now to goes Gov. Gavin Newsom for his consideration.
Local Median-Sales-Price History
Scroll over the second graph to see how far we’ve come:
BTW in March, 2010, the 30-yr fixed rate was 4.95%.
Inventory Watch
There are 170 listings that have been marked as closed sales for August (there were 198 sales in August, 2023) and the pendings count is higher than at the same time last year!
This is the time of year when many sellers/listing agents give up and cancel, withdraw, or expire their listings. Of the 128 listings that have went that way since August 1st, there were 45% of them that went back on the market – with a handful of them going pending during their first week back. Check every new listing, just in case!
Zillow Appreciation Guesses
Since May, Zillow has been predicting virtually no annual appreciation locally. Living in Flat City mostly affects those who have purchased recently – it’s tougher to move and/or refinance if the down payment was 20% or less. If you just want to lower your existing rate, ask your lender about a streamline refinance. Those don’t require an appraisal.
Carlsbad NW 92008
Carlsbad SE – 92009
Carlsbad NE – 92010
Carlsbad SW – 92011
Carmel Valley – 92130
Del Mar – 92014
Encinitas – 92024
La Jolla – 92037
Rancho Santa Fe – 92067
