When Chad Sanfillipo got the keys to his house in Ramona last year, he had come full circle in the real estate market.
After losing his home to a short sale during the crash of the housing market, Sanfillipo was once again an owner.
“It felt so exciting to be able to buy again, to have something I own,” said Sanfillipo, 45, who rented for a couple of years before a bank would lend him money again. “There’s no landlord or rent check. I get to say what I get to do with my house.”
Sanfillipo, a systems engineer, is one of roughly 116,000 San Diego County residents who had either a short sale or foreclosure between 2006 and 2014, before and after the Great Recession, according to CoreLogic, a real estate data company.
The good news for Sanfillipo and others who lost their homes during the downturn is that there’s ultimately forgiveness in the lending market. Each month, thousands of San Diegans who went through short sales or foreclosures are completing waiting periods that render them eligible to once again apply for government-backed loans. In the worst case, some must wait seven years, but others can get new loans in just one, depending on whether they go through the Department of Veterans Affairs, Federal Housing Administration, Fannie Mae or Freddie Mac.
People who lost their homes during the recession but own again are called boomerang buyers, and they’re becoming a larger part of the market.
Boomerang buying is becoming a nationwide movement. The National Association of Realtors says that 9.3 million homeowners underwent foreclosures between 2006 and 2014. Already, 1 million of them purchased homes again, and an additional 1.5 million will become eligible over the next five years.
The state is cooking! She brings up a good point – it might be hotter if there was more to sell:
California home sales softened in May, but the housing market momentum continued to be solid as the spring home-buying season marked higher year-over-year home sales and prices for the fourth straight month, according to the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.).
Highlights
Home sales rose above the 400,000 mark in May for the second straight month since October 2013 and were the second highest level in nearly two years. Closed escrow sales of existing detached homes in California totaled a seasonally adjusted annualized rate of 423,360 units in May.
The May figure was down 1.1 percent from the revised 427,880 homes sold in April, slightly below the long-run April-to-May average sales increase of 0.6%.
Home sales were up 8.9 percent from a revised 388,690 in May a year ago though, and the statewide sales figure so far has outpaced last year by more than 5 percent.
C.A.R. President Chris Kutzkey commented, “The spring home-buying season continues to be strong, especially in areas where insufficient housing supply is less of an issue. With mortgage interest rates edging up recently and an imminent increase in rates by the Federal Reserve, housing affordability concerns will be heightened but may also prompt prospective buyers to feel a sense of urgency to enter the market.”
The median price of an existing, single-family detached California home edged up in May from both the previous month and year for the fourth consecutive month. The median home price was up 0.8 percent from $481,880 in April to $485,830 in May, the highest level since November 2007.
May’s median price was 4.4 percent higher than the revised $465,470 recorded in May 2014. The median sales price is the point at which half of homes sold for more and half sold for less; it is influenced by the types of homes selling as well as a general change in values.
While sales continued to improve from last year at the state level, the number of active listings dipped slightly from the previous year, keeping the supply of homes on the market flat. The May Unsold Inventory Index was unchanged from the 3.5 months reported in April.
We’ve seen how offering a bounty to the buyer-agents is a good idea – incentivizing commissioned salespeople to sell your house is smart! Hire your favorite listing agent and work out something palatable:
Hat tip to Wendy for sending in this article on subprime vs. prime mortgages causing the crisis. The authors probably didn’t catch the fact that prime borrowers were getting neg-am loans based on FICO scores only, and those weren’t considered subprime loans:
We can draw two conclusions from this data. One is that your chances of being foreclosed upon in the past decade was more a matter of timing than anything else. If you were a subprime borrower in, for instance 2002, who bought a bigger house than a more prudent and creditworthy borrower would have bought, chances are you would have been fine. But a prime borrower who did everything right—bought a house he could easily afford, with a large downpayment—but did so in 2006 would have had a higher chance of defaulting than the subprime borrower with better timing.
Since whether you were hurt by the crisis had more to do with luck than anything else, Ferreira argues we should rethink whether doing more to help underwater homeowners would have been a good idea.
The DANGER report also concluded that agent teams were a threat:
I run a brokerage, and have agents who work for me. But I am a salesman through and through, not a guy making a living off other agents. It is why I write blog posts like the one yesterday – I love agents, but detest the big brokerages who take advantage of both agents and consumers.
When I got started in the business, I worked for various franchises, but they were smaller then – mom-and-pop shops that were manageable. Since then, the big franchises have grown into big-box operators, hiring hundreds of agents and providing scant supervision and training.
Enter the agent team.
The lead agent hires other licensees to assist him/her in the business, and they grow as a sub-set of the brokerage. In the old days, those groups would break from the franchise and start their own brokerage, but now they are allowed to grow within the same company. It allows the agent teams to still be part of the franchise when wanted and needed, but for the most part, the franchise name is reduced to fine print on advertisements – and the agent team builds its own identity.
But this is good for the industry because in a smaller group, there can be more supervision and training. The agent teams are providing what the franchise can’t – the daily personal touch with their agents.
We need agent teams to bring up the new agents.
Yes, the big franchises have their mentor programs and training sessions, and I’m sure they are somewhat effective. But those who can, do, and those who can’t, teach.
Besides, it is the hands-on daily management and nurturing of agents is what has them turn into great agents – and the agent teams are the most likely to produce the great agents of the future.
I complain about the agent teams advertising that the lead agent has sold 100+ houses, when in reality it is the combined effort of 10-15 people. When we finally get to the day when we are publicizing agent statistics, the number of people contributing to the agent’s sales should be disclosed (Redfin is the #1 offender).
But everything else about agent teams is good. It is experiential training, where new agents can learn from the best agents while on the job. If brokerages are threatened by this, then so be it – at least the agent teams are bringing up the new agents right.
Word on the street is that Qualcomm is going to layoff a couple thousand folks in San Diego this year. Wanted to get your thoughts on how that would affect the real estate market in San Diego. Most of those jobs may not find a fit in San Diego, and a bunch of Qcomers probably don’t need to sell.
Your thoughts?
My response:
It should mean an instant 10% decline in prices around Carmel Valley because buyers will expect some insurance. Sellers will reluctantly agree because they probably made that much in appreciation over the last year.
After that, it will get interesting.
The unemployed will shine up their resume and hunt for a new job for a year (or more) before ‘giving it away’. Spouse and kids won’t surrender easily either.
This is what we can expect from any disaster, natural or otherwise, that shocks the system. Buyers will be prone to hesitate, and the sellers who feel somewhat panicked will accommodate by lowering their price to clinch a sale.
Real estate isn’t known to be a liquid asset, so everyone will adjust expectations after the initial pop.
socalbuyer asked,
My understanding is that we have a total of 9000+ property sale transactions a year in San Diego…the qcom layoff number is as high as 5000. Figure 50% find a job out of San Diego and need to sell, 2500 units on the market sounds sizable, especially if most are in 92130.
Last year there were 22,079 detached homes sold in San Diego County, and 470 in the 92130 – which is only 39 per month. If pricing retreated a little, there could be a surge of CV buying but either way, it is a small portion of the market compared to the overall county. I’m guessing that there is enough underlying demand that any excess properties will get soaked up – it’s just a matter of price.
Carmel Valley prices have gone up 20% in the last 2-3 years. If sellers had to give that much back, they’d survive. The market will too – CV has too much going for it.
Yesterday, a name and number was sent to me by an internet lead service. It doesn’t cost me anything to receive the leads – the internet-lead company gets a referral fee from the listing agent once the sale closes. I’m on the list more for amusement – I’ve never closed a sale from any internet-lead service.
I always check the MLS to see if their house has been listed recently, and look for upgrades in the photos – because there could be a 10% swing in price.
This property was an active listing, so I knew what was coming – the sellers weren’t getting enough action, so they blamed the agent (not their price).
I get the seller on the phone, and he starts right in with,
“What company do you work for?”
His current agent is an independent, so instead of having a frank conversation about the realities of the market and why his house isn’t selling, he jumps to the conclusion that he needs a big company to push the product. I mention that I can better expose his property using my video tours, but he wouldn’t have anything to do with it.
He wants a big-name company. Period.
This is why the large franchises exist. They know that sellers don’t have much experience with selling real estate, and the accompanying discomfort causes them to make snap decisions. Many people have been brainwashed by advertising, and feel more comfortable selecting a brand name, rather than investigate the choices.
My take on the subject:
1. Most are independents. According to NAR, the majority of realtors (57%) work for independent, non-franchised companies. If the realtors themselves don’t see the value in working with a franchised company, then why should the consumer?
2. Selling real estate is an individual sport, not a team sport. Sellers are hiring an agent to advise them how to sell for top dollar with minimal hassle. You want to believe that there is a ‘Company Way’ to sell houses and every one of their agents did it the same. But it’s not like that – we are independent contractors that all sell differently. Want proof? The only thing we have in common is the MLS – and look at how differently it is used by agents. Some include lousy or no photos, great or crappy remarks, etc.
3. Quality – The recent DANGER report concluded that ‘the No. 1 liability for the industry is its masses of “untrained, unethical and/or incompetent agents.”’ These agents work at every company (franchise and independent), and sellers are misguided to think that if they call a brand-name company, they will automatically get a competent professional. Inexperienced agents typically usually learn at a big franchise office, then go out on their own once they are experienced – which would make you think that hiring an independent agent would make it more likely to get an experienced agent.
4. Reputation – Have you ever had a bad experience with a brand-name company? This is why many agents prefer to be independent – the actions of other realtors in the office can have a negative impact on their own reputation.
5. Independent companies vs. independent realtors. Once you are open to hiring an independent, then break it down further. A big independent brokerage has some of the same problems as a big franchise. Ideally you want to hire a guy whose name is on the door – he has the most riding on every detail of the transaction.
This isn’t a knock on franchise offices themselves – there are good and bad agents everywhere you go. It’s the industry itself that prefers to mask the competency of the agents. Have you noticed how few realtor blogs there are? Why is that? It’s because agents don’t want to be scrutinized, and their employers don’t want to be either. They prefer to hide behind big names and imagery where the consumer has little idea what they are actually getting – until it is too late.
Is there an easy answer to how much sellers should spend on repairs, to sell?
You see me on various jobs talking about projects undertaken by sellers – and the scope of the project are almost always related to the house’s age. You want to bring houses up to speed, but items that are dated and hard to change (eight-foot ceilings, split-level, bad yard, etc.) make it a real challenge.
Where do you start, and where do you stop?
Work it backwards. Those who live in a super-custom area (RSF, Del Mar, La Jolla, etc. where values can vary widely from lot to lot), have a wider range.
But those who live in tract neighborhoods can expect home values to range roughly 10% between the fixers and the cream-puffs. The newer the tract, the easier it is to predict where you are in the range, because the improvements are more likely to be similar.
If your house is mostly original, buyers will expect to pay a minimum of 10% less than the comps that have been fully remodeled or have other positives (view, big yard, one-story).
If you can find a way to spend less than 10% to get your house from fixer to full retail, then do it. Your renovated look could spur a bidding war, and/or provide additional benefits later like easier repair-list, easier appraisal, and less chance of fallout.
If the cost of needed improvements exceed 10% of your current value, then just sell it as a fixer, and have your price do the work – list for 10% under the renovated comps.
There are other variables – a bad agent can cost you 2% to 3%, and a great one can add 2% to 3%. Quality contractors at reasonable prices make a substantial difference, and timing is everything!
The Carlsbad Music Festival kicks of the summer with its third annual free Village Music Walk, featuring dozens of musicians performing over 60 sets during a 6 hour celebration of adventurous music.
An extension of the August Carlsbad Music Festival, the Village Music Walk is an all- ages, free of charge, community event that features a wide array of music performed in outdoor and indoor spaces throughout the historic Village of Carlsbad. The unique performance venues range from public parks and art galleries, to local music stores and even a 19th century chapel.
Drawing annual crowds of over 4000 community members and cultural tourists, the Village Music Walk runs from 4-10pm with 20-minute sets starting every half hour. With multiple performance options to choose from at any time, attendees of the Village Walk are invited to create their own concert journey through the Village.
The San Diego International Beer Festival had over 10,000 people last year, and two of their sessions are already sold out this year:
June 19-21.
2260 Jimmy Durante Blvd., Del Mar 92014. With more than 400 beers from around the world to choose from, beer aficionados will enjoy hard-to-find specialty craft brews alongside favorites from the local brewing scene. Specialty vendors will be selling a variety of accessories and gifts for the beer lover. With a stage featuring everything from home brewing advice to educational demos to food pairings presented by Venissimo Cheese and The Lost Abbey, you won’t want to miss out.
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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!
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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!
Anu Koberg
July 13, 2024
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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
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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
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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.
