We often think that we know when the market is going to peak, but it’s impossible to know where the top is until we’re on the other side of it. Despite this, we consistently allow ourselves to believe that we’re able to time the market. That’s a belief that we need to get rid of.
With that said, when truly is the best time to buy or sell a home? My honest answer is that the best time is when you need to move because your family is growing or shrinking, or when you’re being relocated for work—whenever it makes sense for your life.
Suppose you’re selling your current primary residence and buying your new one: Regardless of what the market does, it won’t ultimately impact your pocket that much. Of course, it hinges on your keeping that primary residence for an extended period of time, but no matter when you do it, you’ll end up living through a down cycle into an up cycle.
What’s going on in our San Diego County real estate market as we round out 2018? Let’s find out by taking a look at the year-over-year changes from November of this year versus November of 2017.
First of all, it’s been a long time since we’ve seen this kind of movement in our market.
There has been a 7.7% spike in inventory since November of last year, with 1,121 homes coming on to our market this November.
The number of pending home sales, though, saw a massive change in the opposite direction, dropping 24.7% year over year. Unsurprisingly, this means that the number of closings has also dropped. As of this November, there were 22.9% fewer closings than there were a year ago.
So, given the fact that fewer homes are selling while an increased number of properties continue to hit our market, inventory has risen by a staggering 48% year over year. The months of supply, or the number of months it would take for our market to become depleted of listings if no new homes were to be listed during that time, also rose, going up 64.3%.
Posted by Bree Castro on Tuesday, June 20, 2017 at 1:46 PMBy Bree Castro / June 20, 2017Comment
The San Diego County rental market has a vacancy rate of only 2.2%! Why the shortage of inventory? It is a combination of a lack of new home construction and an increase in both population and employment growth. That unfortunately doesn’t leave renters with much of any selection for housing. Due to the scarcity, rents have increased tremendously.
The average 1 bedroom in the county is now close to $1,800 per month. Owners can now be extremely selective in who they rent to. We are frequently seeing owners advertise “no pets” on almost every listing. Additionally, the credit score minimum has increased dramatically for most owners and management companies. Applicants used to get away with lower credit by paying a higher deposit but that is not the case any longer.
Some owners will even discriminate against families, requesting just a single individual, or that no more than two adults may live in the rental (however this type of discrimination is certainly a Fair Housing Violation). The shortage of options, increase in prices, and the stricter rental requirements makes for an awfully daunting rental market.
We have firsthand experience in the rental market as our Lead Showing Specialist frequently helps prospective renters find homes and owners lease out their investment properties. Having property management knowledge on both ends has enabled us to develop a strategy to help all renters even in a tough market.
If you are looking for a rental, we suggest the best way is to line yourself up with someone who has experience. If you have questions or are interested in a FREE CONSULTATION you can reach us at 858-248-7494 or by email at firstname.lastname@example.org.
Posted by Casey Miller on Wednesday, May 24, 2017 at 10:49 AMBy Casey Miller / May 24, 2017Comment
In a nearly unanimous vote, the U.S. Federal Reserve increased the Federal Funds Rate by 25 basis points on Wednesday, March 15th, bumping it to between 0.75% and 1.00%. Federal Reserve Officials expect to hike rates by 25 basis points two more times in 2017.
While the rate increase indicates a strong economy, it will mean higher interest rates for mortgages and other consumer and business loans across the country. The Federal Reserve gave no indication that it plans to begin to reduce its large holdings of mortgage-backed securities (MBS) any time soon, and since Fed purchases of MBS have helped push mortgage rates lower, reduced demand for MBS from the Fed would be negative for mortgage rates.
About the Fed Funds Rate The Federal Funds Rate is the rate at which banks can borrow money from each other overnight to maintain their reserve requirement. This rate is used to control the U.S. economy and is arguably the most important interest rate in the world. It not only affects all other interest rates, including mortgage rates, credit cards, and student loans, but also has a trickle-down effect that impacts the world economy.
Questions? Contact Todd Pianin with HomeStreet Bank at 858-259-4013
Todd Pianin’s NMLS ID is 304014. HomeStreet Bank is an Equal Housing Lender and makes mortgage loans without regard to race, color, religion, national origin, sex, handicap, or familial status. Member FDIC.
Welcome back, everyone. Today we want to talk about the basic philosophy behind receiving multiple offers on your home. This is something we have been doing a lot lately, and something we will continue to do in the future. To show you how we get multiple offers, let's start with an example.
Last weekend, we bought two homes on the market for resale. One was in Oceanside, one was in Del Sur. Now, we were able to sell the home in Oceanside for full list price, no problem. However, the home in Del Sur, an expired listing, generated 5 offers. After the bidding war, the home's sale price rose from the original list price of $629,000 to the final price of $660,000. How did this happen?
Due to a number of factors. The first is how we orchestrate the showing process, which is very strategic. When we go through the process, there's a huge psychological shift in the way we do things from the way other agents out there do it. When we do what we do, we create an environment where the buyers compete...
Posted by Daniel Beer on Monday, December 29, 2014 at 1:45 PMBy Daniel Beer / December 29, 2014Comment
2014 was a strange year like none other in recent memory for the real estate market in San Diego, only because of how absolutely normal, stable, and balanced it was. It was fairly uneventful. You may even say it was dull. But that is exactly why it was so fascinating on the tail end of a real estate boom, bust, and boom cycle that was as aggressive as any the market has ever seen.
Let’s take a look at a three key metrics as reported by Trendgraphix™ to get a better idea for how the market has performed during the last year and where we are headed.
Price Per Square Foot
While official numbers were not available at the time that this article went to print, our research tells us that San Diego County experienced roughly 7.4% appreciation during 2014. We derive that by looking at the average price per square foot sold of $315 for November 2014 vs November 2013 when it was $293 per square foot. My personal prediction is that we will experience a very similar 2015 from an appreciation standpoint. I will go on the record as predicting 5% appreciation for 2015.
Days On Market
The average home in 2014 took 46 days to sell compared to 55 days in 2013. So the homes are selling very quickly. Furthermore, keep in mind that this average days on market number includes those homes that took hundreds of days to sell. That means that there are plenty of homes selling in the first few days of the listing or in the first couple of weeks.
This confirms that as agents, we know that with appropriate pricing and strong marketing with a proven plan in place, plenty of homes are still selling quickly. As a seller this is extremely si-highlight--primary information to know when going to sell your home because it tells you that if you aren’t seeing a lot of positive activity right out of the shoot, then something is wrong and an adjustment is needed to your strategy. You should...
Posted by Daniel Beer on Friday, September 12, 2014 at 10:46 AMBy Daniel Beer / September 12, 2014Comment
Where is the San Diego housing market heading? Considering the average days on market in San Diego County is 39 days, we believe we're seeing the first normal market in over 10 years. In our latest video we look at the major market trends we've in San Diego and how that's led us to the balance and stability we're seeing today.
This is the first time we've seen a normal market here in San Diego since we first started selling real estate in 2005. From that time until sometime in 2007, there was a mad dash to the market. Everyone wanted to buy - there were multiple offer situations and bidding wars left and right.
Then came 2008 and the crash of the financial markets. It wasn't a slow descent from the height of the market frenzy - the market was pushed off a cliff. Buying and selling real estate became incredibly difficult; buyers and sellers were so far apart during this time we couldn't even get them together for a rational conversation. Financing wasn't there and home prices had plummeted. It was tough.
Around 2013, however, the market snapped back. It was a quick rebound from the market's low point in 2012. People who bought during that time were able to turn around and sell a year later, some seeing returns up to 22%. We were seeing bidding wars and multiple offers like we were in 2005. The market was alive...
Posted by Daniel Beer on Friday, August 22, 2014 at 8:44 AMBy Daniel Beer / August 22, 2014Comment
In San Diego County, the real estate market is moving and healthy, and in this video we give you the latest statistics and trends. We also discuss how failing to account for list-to-sale-price ratio in San Diego can lead to homes sitting on the market, when the average home is selling in 39 days.
Right now we have a pretty stable market in the San Diego area. The amount of available inventory is at 8,600 homes, which is up from 4,500 homes at this time last year. That puts us at a healthy 3.1 months worth of inventory, with the average sold home only sitting on the market for about 39 days.
We guarantee we will sell your home in 49 days or less - if we fail to, we will sell it for free. In this market that is really moving, there is no reason your home should be on the market for 50 days. Our confidence has a lot to do with our time-tested marketing plan. We look closely at the list-to-sales ratio in the specific areas and strategically price your home to get it sold quickly and at top dollar.
There is no bigger mistake you can make than overpricing your home. Many people think they will start with a high price and lower it if necessary. The problem is that this strategy doesn't work - typically, no offers are made on the home and people don't...
Posted by Daniel Beer on Thursday, December 26, 2013 at 9:57 AMBy Daniel Beer / December 26, 2013Comment
Verrazzano, a favorite community of the Daniel Beer Group, had a very interesting 2013, mainly characterized by low inventory. In fact, there are currently no homes for sale in all of Verrazzano. Five homes are currently under contract as of the time this blog post was published. You can get a sense for the Verrazzano real estate market in the graph below. You will notice that the number of available homes for sale has trended down over the last three years. Also, please note that the two homes that it shows as coming on the market in November are now in escrow. Homes are not lasting long on the market. The average days on market for homes listed in the last three months has been just under 21 days. Story continued below...
End of Distressed Sales for Verrazzano
The 2013 story for the community located just off of Camino Del Sur is also one of a market becoming healthy. The graph below will give you a three year view at all of the REO and short sale activity in the neighborhood. You will see a trend down as they get cleared out and the market becomes healthy once again. Currently there are two short sales under contract in the community, though both of them came on the market near the start of summer and have just taken a long time going through the short sale approval process.
The Return of the Million Dollar Sale
The above is very good news for the community as this will alleviate a lot of the downward pricing pressure and allow the neighborhood to...