Your Holiday Real Estate Market Wrap Up

Happy holidays! Today I’m here with your final market update for 2016, as well as my market predictions for the new year.

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Happy Holidays! I’m here with your year-end market wrap up. I’ll also give you a sneak peak into the 2017 real estate market.

The final numbers for 2016 are coming in. San Diego’s median price point hit $507,000, which is the first time we have broken $500,000 since November of 2005.

As a result, there have been some concerns about the market topping out again. However, we still have not matched the most recent market peak of $517,000. Historically, each peak in the real estate market exceeds the previous peak, so we technically have a bit of a run up to go.

Still, home sellers hold all of the cards right now thanks to incredibly low inventory. Year over year, low inventory has driven our market trends. I expect that to be the case in 2017. So far, this year has mapped out almost exactly like 2015, and I predict 2017 will be more of the same.

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I predict 2017 will be more of the same.

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More inventory will hit the market mid-January, and there should be a big rush through spring. The market will slow down again next fall.

What’s interesting is that we are still seeing a lot of market activity this holiday season. Why? For years, there has been talk about how interest rates need to go up. Well, it’s finally happening. Rates went up a half point over the last few weeks, and with the Fed raising their rates, there is some concern about inflation. As rates jump up, housing affordability goes down.

That’s it for our 2016 real estate market wrap up. I hope you all have a wonderful holiday season. If you have any questions, please don’t hesitate to reach out to me. I would be happy to help you!

Get Into the Spirit of Sharing This Thanksgiving

Today I’ll go over a quick market update about how the election has impacted interest rates. I’d also like to invite you to a special event we’re having on December 7th!

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Today I’m here with your Thanksgiving market update. I’d also like to invite you to a special event we’re holding on December 7th!

Whether or not you are thankful for the outcome of this election, Wall Street has been a big fan of a Trump presidency. The stock market has increased, the bond market decreased, and, as a result, mortgage interest rates are starting to rise. Over the last week, we’ve seen a half-point bump, and interest rates now hover in the neighborhood of 4%. 

Interest rates should continue to rise, so if you’ve been thinking about buying a home, it’s important to keep that in mind. Every 1% increase in interest rates means a 10% loss in home affordability for buyers. The good news for buyers is that fall is typically one of the best times to get a deal, as sellers are highly motivated at this time of the year.

Now, on December 7th, we will give back to the community. This year, we are supporting an organization called Spirit of Sharing, which helps military families here in Southern California. During the holidays, many of these families struggle, so we are hosting a food and toy drive here at the office from 3 p.m. to 7 p.m.

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We’ll see you on December 7th!

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There will be some special guests at our event. Santa Claus will stop by from 4:30 to 6 p.m., so bring the family down to take some photos. Branden Oliver, the San Diego Chargers running back, will also make an appearance. Spirit of Sharing is near and dear to his heart, so he is glad to be here and support our efforts to help this organization.

So, stop by our office on Wednesday, December 7th from 3 p.m. to 7 p.m. Most of our special guests will be here between 4 p.m. and 6 p.m., and we will also have snacks, drinks, music, and Christmas videos. Come have a great time and support a great cause.

Finally, I want to wish you all a happy Thanksgiving. Thank you for continuing to support us; we really appreciate it. I would also like to thank my team — it’s been great working with you all this year — and my family, who always support me in my endeavors.

Have a great Thanksgiving! If you have any real estate questions, please don’t hesitate to reach out to me. Otherwise, we’ll see you on December 7th. I look forward to seeing you all!

How Will the Election Affect the Housing Market?

We want to take a moment to talk about how the presidential election will affect our housing market. We also want to invite you to a happy hour at our office.

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The presidential election seems to be taking up a lot of everyone’s time right now. Instead of focusing on policy or promises, we want to talk about what effect, if any, the election will have on the housing market.

One poll that I found discovered that 1% of respondents said they would leave the country if their candidate didn’t win. Another 9% said they would consider it. With all the uncertainty and doubt of people leaving the country, what kind of effect will that have on the housing market?

Studies have shown that during election years, appreciation and depreciation values varied by about .2%. Right now, we are seeing an average appreciation of 6.4% a year, so .02% is not much of a deviation.

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Election years affect appreciation only slightly.

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If you are thinking about buying, you may have an opportunity to save a little bit during this election cycle. If you have been thinking about selling, conditions are perfect.

If you have any questions for us, don’t hesitate to give us a call or send us an email. We would love to hear from you.

A Quick Update on San Diego Real Estate

San Diego remains the best place in California for home appreciation. There are a number of other factors that make this real estate market one worth investing in.

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The latest numbers are in for the San Diego real estate market, so we wanted to talk to you about what we have seen in the last quarter of the market and what we expect the market to do going forward.

We finished the 3rd quarter strong. Sales peaked in June, then fell off a little in July and August as people went on vacation and put housing on the back burner. People are back in town now and activity has picked up.

San Diego is number one in California in terms of appreciation at a rate of 6.4%. Condos have an even higher rate of 7.8%. The median home price actually hit $498,000 this year. The median price hasn’t been that high in a decade.

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We haven’t had a median price this high in a decade.

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We are still below the peak of November 2005, but we are continuing to catch up to it. There is some speculation that with overall inflation in the economy (2%), income growth may start dragging on the housing market. But for right now, with our inventory shortage, things are full-steam ahead.

If you have any questions for me or my team, give us a call or send us an email. We would love to hear from you.

Join Us at the Doggie Street Festival Aug. 27th

We have a passion for finding our clients homes, but I wanted to talk today about finding homes for our furry friends.

The Doggie Street Festival helps find homes for all types of rescued dogs from across the county. Last year, the festival helped more than 200 dogs find new homes. We had the opportunity to donate office space to Jude Artenstein, who has been running the Doggie Street Festival for the last seven years, and we’re proud to sponsor the event.

We’d love to see you, your friends, and your family there. All dog lovers are welcome!

The event is Saturday, August 27th in NTC Park at Liberty Station from 9 a.m. to 3 p.m. You can get more information on their website.

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Last year, the festival helped find homes for more than 200 dogs.

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The Doggie Street Festival will have music, food, guest speakers, veterinarians, pet vendors, a kids’ art area, auctions, and, of course, lots of dogs.

It's going to be a fantastic event and we're proud to be a sponsor. As always, if you have any questions for me, give me a call or send me an email and I'd be happy to help you in any way I can.

The Impact of Brexit on the San Diego Real Estate Market

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When the United Kingdom voted to leave the European Union, everyone was shocked. No one expected Brexit to succeed.

There was immediate fallout in the financial market, especially in the English commercial real estate market. A lot of investors pulled their money out of several large funds. Eventually, the funds were frozen in order to prevent fire sales.

That situation is still playing out, but how does something across the pond affect us here in San Diego?

You’ve probably heard the expression, “Think globally, act locally.” Nothing is more local than real estate, but those fluctuations and the uncertainty in Europe have caused foreign dollars to move into more stable assets, including U.S. real estate.

Right now, we’re seeing a lot of foreign investors buying up real estate or U.S. treasury bonds, one of the most stable investments on earth.

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U.S. real estate is a stable asset.

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Since all of that money is coming into the real estate market, interest rates have gone down. The Fed has decided not to change their interest rates as well, which has also helped keep consumer rates low.

As of right now, we can expect continued demand for properties, low inventory, and low interest rates despite the uncertainty across the Atlantic. That’s the immediate impact of Brexit on our real estate market.

Interested in learning more on Brexit? Watch our recent show on Channel 4.

If you have any questions, give me a call or send me an email. I would be happy to help you!

Don’t Miss Our Housing Happy Hour at Bay Park

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We’re excited to announce that we will now be hosting educational events around San Diego on the second Wednesday of every month. Our first one will take place on Wednesday, May 11 at Poseidon Project in Bay Park, just off of Napier Street, from 5:00 pm to 7:00 pm. 

At each happy hour, we will discuss the real estate market and different trends that are affecting how we conduct business. We might speak about lending, marketing, or how to manage your office more effectively.

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Our first event will be taking place on Wednesday, May 11 at Poseidon Project in Bay Park.

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We will also have set topics for each month. This month we will talk about first time home buyers. We’ll go through the entire process and also speak about what market is like for new home buyers right now.

Our second meeting in June will be held at Luce in Bay Park. The first twenty people there will receive a free drink!

We hope to see everyone there!

Where Is the San Diego Market Heading?

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We’re really excited to finally be operating out of our new office in the heart of Bay Park at 4112 Napier Street! If you find yourself out at Fish Co. or Luce, don’t hesitate to swing by and say hello! We would love to see you!

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The market as a whole in 2015 finished with the market up about 6.5%

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Now, for how the market is doing. The market as a whole in 2015 finished with the market up about 6.5%. The forecast for 2016 is that we’ll continue to see appreciation in our market, but it will probably be half of what it was last year. 

Our market is off to a great start in 2016. We’ve seen a huge jump in the number of transactions in the last six to eight weeks. Inventory is less that 6,000 in San Diego County and buyers are really getting out there and taking advantage of interest rates, which have dipped yet again. 

Right now is a fantastic time to sell because competition is quite low, and it’s only a matter of time before the spring selling season changes that. If you’re on the buying side, it might be difficult to get into the house that you’re looking for, but it will likely be relatively inexpensive with the cost of money as low as it currently is. 

What Are the Hottest Neighborhoods in San Diego?

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I recently had the privilege of joining Sean Cahan, Derrick Evens, and Rebecca Peters on Smarter San Diego. They are a local program and they focus on old-school, unbiased journalism. I was asked to come on and talk about the Redevelopment of Bay Park and to see what it means for homeowners in the area. 

Bay Park is only now starting to get attention from home buyers. It’s been around for quite some time, and demand is beginning to grow quite steadily. On average, homes in the area are 1,300 sq. ft. and they will start off in mid $600k range. Sean Cahan, of Cornerstone Mortgage, says that jumbo loans are looking great right now if you need help financing one of these fabulous homes. 

Despite the homes being older and smaller, the neighborhood is much more economically viable for most first-time homeowners. You can find similar homes in La Jolla, but they are going to cost you an extra $200k. You could find a home in Bay Park that is similar in style and size, and that will have a view, and it’s going to cost much less. This is why Bay Park is getting so much buzz right now.

In fact, Sean Cahan and I frequently team up to flip homes, and we just sold one of these in Bay Park. However, we now have our eyes on the Sherman Heights area for more investment opportunities. Another area that I like is Imperial Beach, because some of the real estate you can find is amazing for it being only 12 blocks from the ocean. 

North County in San Diego is something that we aren’t quite sure about. Prices seem to be inching up a little too high, so we would recommend waiting and thinking before purchasing or investing in a property around there. 

Thanks for tuning in again, I just thought you’d like to see me in action on Smarter San Diego. Let me know if you have any more questions about investing in San Diego real estate!

A New Alternative to the Probate Process in San Diego

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You’ve probably heard about State Assembly Bill 139, but do you know what it does? The purpose of it is to provide an affordable option for seniors to traditional probate or estate planning. The goal was to pass the ownership of property directly to a beneficiary upon death without having to go through a probate. 

If you or any of your family members have yet to go through probate, know that it can be a lengthy, stressful, and expensive process. If you would like additional information on this, or if you need any forms, don’t hesitate to reach out to us. Or, if you would like to talk to an estate planning attorney or real estate attorney, please don’t hesitate to let us know. We have some fabulous resources we would be happy to share with you! 

Of course, we’re also available to help you with your real estate needs at any time. We would love to hear from you!