Real Estate @ a Glance: May 2013 Edition
Here is the most recent information on the San Diego housing market. For specific information on your neighborhood or a market analysis on your home, please send me an email or call me at 619-325-4192.
April :: SAN DIEGO ASSOCIATION OF REALTORS®
Attached Homes
- Total Sales Volume: $309,395,621 = 10.936% lower than March and 20.6% higher than one year ago
- Average Sales Price: $345,693 = 0.388% lower than March and 24.912% higher than one year ago
- Average days on the Market: 64 Days = 1.587% higher than March and 29.67% lower than one year ago
Detached Homes
- Total Sales Volume: $1,246,626,405 = 7.715% higher than March and 26.608% higher than one year ago
- Average Sales Price: $594,481 = 7.304% higher than March and 22.381% higher than one year ago
- Average days on the Market: 56 Days = 5.085% lower than March and 33.333% lower than one year ago
The following graphic charts San Diego County’s market data for Active, Contingent and Pending listings over the last year.
March :: CALIFORNIA ASSOCIATION OF REALTORS®
- Existing Home Sales 0.1% higher than March and 4.9% lower than one year ago
- Median Home Price: $378,960 = 13.7% higher than March and 28.2% higher than one year ago
- Median Days on the Market: 29.4 Days = 14% lower than March and 43.7% lower than one year ago
- California Housing Affordability Index: 48% = 1.0% lower than March and 7.0% lower than one year ago
San Diego County market statistics provided by CAR and SDAR.
For up-to-date information on the market, please contact me.
There’s a lot of talk about neighborhoods these days. Folks want to be a part of a community. When it comes to the clients that I work with, most agree – neighborhood matters.
In the California Association of Realtors Home Buyers Survey in 2012, close to half of the those who participated in the survey indicated that ”neighborhood” was the top criteria in selecting a new home. ”Good price” and “home features” were important but clearly, people want a sense of belonging to a community.
What constitutes a “neighborhood”? What does it mean to you? Often people will want a ‘walkable’ community. With increasing interest in health and environmental concerns, clients are opting to choose neighborhoods that allow them to rely less on their cars. The traditional factors – safety and good schools – are still part of the equation but there’s more wiggle room with the increasing emphasis on the character of the neighborhood.
So, it’s important to find a San Diego neighborhood that suits you. Older vs. newer? Urban vs. suburban? Explore the diverse communities around where you live and learn about what they have to offer.
If you or someone you know is interested in buying residential property, please don’t hesitate to contact me. My knowledge of San Diego neighborhoods can better assist you find the property you’re looking to buy.
New Household Information Will Fuel Housing Demand
In real estate, it’s not enough to keep your eye on the ball; you have to anticipate where the ball is heading. Demographics dictate that the U.S. population will continue to rise, creating new households and a greater need for housing. According to the Joint Center for Housing Studies at Harvard University, population trends will restore vitality to the housing market as the nation emerges from the current remission.
The chief reason is the presence of the millions of Echo Boomers. Together with the immigration to the United States, Echo Boomers are expected to raise housing demand for the next decade and beyond.
Who Are the Echo Boomers?
The Echo Boom generation, also known as Generation Y or the Millennial Generation, are the children of the Baby Boomers. Now the nation’s largest demographic group, Echo Boomers are entering the peak years for forming their households.
The massive size of the Echo Boom generation “will give a powerful boost to long-run housing demand,” according to the Harvard study. Household growth is expected to increase by more than 1.25 million annually over the next decade.
As the Echo Boomers join the Baby Boom generation as active participants in the housing industry, we will see the market reinvigorated with opportunity and validating the purchase of a home as a lucrative investment.
If you or someone you know is interested in buying residential property, please don’t hesitate to contact me.
10 Questions to Ask Home Inspectors
Before you make your final buying or selling decision, you should have the home inspected by a professional. An inspection can alert you to potential problems with a property and allow you to make an informed decision. Ask these questions to prospective home inspectors:
- Will your inspection meet recognized standards? Ask whether the inspection and the inspection report will meet all state requirements and comply with a well-recognized standard of practice and code of ethics, such as the one adopted by the American Society of Home Inspectors or the National Association of Home Inspectors. Customers can view each group’s standards of practice and code of ethics online at www.ashi.org or www.nahi.org. ASHI’s Web site also provides a database of state regulations.
- Do you belong to a professional home inspector association? There are many state and national associations for home inspectors, including the two groups mentioned in No. 1. Unfortunately, some groups confer questionable credentials or certifications in return for nothing more than a fee. Insist on members of reputable, nonprofit trade organizations; request to see a membership ID.
- How experienced are you? Ask how long inspectors have been in the profession and how many inspections they’ve completed. They should provide customer referrals on request. New inspectors also may be highly qualified, but they should describe their training and let you know whether they plan to work with a more experienced partner.
- How do you keep your expertise up to date? Inspectors’ commitment to continuing education is a good measure of their professionalism and service. Advanced knowledge is especially important in cases in which a home is older or includes unique elements requiring additional or updated training.
- Do you focus on residential inspection? Make sure the inspector has training and experience in the unique discipline of home inspection, which is very different from inspecting commercial buildings or a construction site. If your customers are buying a unique property, such as a historic home, they may want to ask whether the inspector has experience with that type of property in particular.
- Will you offer to do repairs or improvements? Some state laws and trade associations allow the inspector to provide repair work on problems uncovered during the inspection. However, other states and associations forbid it as a conflict of interest. Contact your local ASHI chapter to learn about the rules in your state.
- How long will the inspection take? On average, an inspector working alone inspects a typical single-family house in two to three hours; anything significantly less may not be thorough. If your customers are purchasing an especially large property, they may want to ask whether additional inspectors will be brought in.
- What’s the cost? Costs can vary dramatically, depending on your region, the size and age of the house, and the scope of services. The national average for single-family homes is about $320, but customers with large homes can expect to pay more. Customers should be wary of deals that seem too good to be true.
- What type of inspection report do you provide? Ask to see samples to determine whether you will understand the inspector’s reporting style. Also, most inspectors provide their full report within 24 hours of the inspection.
- Will I be able to attend the inspection? The answer should be yes. A home inspection is a valuable educational opportunity for the buyer. An inspector’s refusal to let the buyer attend should raise a red flag.
(Source: Rob Paterkiewicz, executive director, American Society of Home Inspectors, Des Plaines, Ill., www.ashi.org.)
If you or someone you know is interested in buying residential property, please don’t hesitate to contact me.
Real Estate @ a Glance: April 2013 Edition
Here is the most recent information on the San Diego housing market. For specific information on your neighborhood or a market analysis on your home, please send me an email or call me at 619-325-4192.
March :: SAN DIEGO ASSOCIATION OF REALTORS®
Attached Homes
- Total Sales Volume: $347,385,859 = 45.506% higher than February and 40.303% higher than one year ago
- Average Sales Price: $347,039 = 10.765% higher than February and 23.063% higher than one year ago
- Average days on the Market: 63 Days = 14.865% lower than February and 34.375% lower than one year ago
Detached Homes
- Total Sales Volume: $1,157,334,221 = 47.039% higher than February and 27.248% higher than one year ago
- Average Sales Price: $554,014 = 6.144% higher than February and 15.248% higher than one year ago
- Average days on the Market: 59 Days = 15.714% lower than February and 32.184% lower than one year ago
The following graphic charts San Diego County’s market data for Active, Contingent and Pending listings over the last year – further evidence that housing inventory has decreased; increasing marketplace competition between home buyers, and increasing home prices for home sellers.
February :: CALIFORNIA ASSOCIATION OF REALTORS®
- Existing Home Sales 0.9% lower than February and 5.9% lower than one year ago
- Median Home Price: $333,880 = 1.0% lower than February and 24.2% higher than one year ago
- Median Days on the Market: 34.1 Days = 6.6% lower than February and 40.4% lower than one year ago
- California Housing Affordability Index: 48% = 1.0% lower than February and 7.0% lower than one year ago
San Diego County market statistics provided by CAR and SDAR.
For up-to-date information on the market, please contact me.
What makes a property historically significant
In the course of serving my clients who show interest in older San Diego communities, we often talk about historic preservation, the Mills Act, renovation costs and other related issues to consider when investing in older properties.
The issue became more personal to me in the last year when I purchased a home in a historic district in San Diego. Since then, I have navigated through the renovation process of the home while keeping within the historic resource guidelines in order for the property to qualify for the Mills Act, a tax reduction incentive for designated historic resources. The whirlwind of renovation is coming to an end. Soon, I will be moving into and maintaining my new home!
What makes a property historically significant?
In order to be designated as a historically significant site at the local level, the historical study must show that a site meets at least one of the following City of San Diego historical designation criteria.
- Exemplifies or reflects special elements of the City’s, a community’s or a neighborhood’s historical, archaeological, cultural, social, economic, political, aesthetic, engineering, landscaping or architectural development.
- Is identified with persons or events significant in local, state or national history.
- Embodies distinctive characteristics of a style, type, period or method of construction or is a valuable example of the use of indigenous materials or craftsmanship.
- Is representative of the notable work of a master builder, designer, architect, engineer, landscape architect, interior designer, artist or craftsman.
- Is listed or has been determined eligible by the National Park Service for listing on the National Register of Historic Places or is listed or has been determined eligible by the California State Office of Historic Preservation for listing on the California Register of Historical Resources.
- Is a finite group of resources related to one another in a clearly distinguishable way or is a geographically definable area or neighborhood containing improvements which have a special character, historical interest or aesthetic value or which represent one or more architectural periods or styles in the history and development of the City.
Mills Act Program - City of San Diego
The Mills Act Program agreement is a legal contract binding the owner of a designated historical resource to maintain the subject property and to provide visibility of the historical resource from the public right-of-way, and to improve or rehabilitate the property based on specific conditions included in the agreement. The average savings is 50 percent with a range of property tax reduction between 25 percent and 75 percent.
Eligibility Requirements
This property tax reduction is an incentive offered citywide (San Diego) to property owners of designated historical resources that are listed on the City of San Diego Register. In exchange for the reduction in property taxes, the owner is required to maintain their property and its historical significance in accordance with the U.S. Secretary of the Interior’s Standards and to rehabilitate or restore portions of the property if necessary. There are limitations on the use of this program within some redevelopment areas. Incentives other than the Mills Act tax reduction may be available in these cases.
What are my new responsibilities as an owner if my property is on a site that has been historically designated, in contrast to what they were before designation?
A project review to assess adherence to the Secretary of the Interior’s Standards for Treatment of Historic Properties would be needed before doing major alterations to the exterior of your building that are visible to the public, such as building an addition or second story, changing the exterior wall material, removing original features, or changing windows. The proposed changes would have to be compatible with the style or character of your home, so that it would continue to maintain its historical character. Some of these things may not require a building permit, but you need to obtain historical approval for them before you commence the work. Before your site was designated, you had to obtain a permit to do most of these things, but proposed changes didn’t have to be compatible with your existing house and didn’t need the historical review.
(Resource: City of San Diego)
If you know someone who is interested in purchasing property of any vintage please send them my way!
Curb appeal, get the house ready to sell
It comes up all the time. A seller will want his/her house to sell, sell fast and, with luck, the seller will be happy with the sale price. Most real estate professionals will tell you, it takes more than luck. There are things that every seller should do to improve their chances of attracting the potential buyers.
Get the House Ready by Realtor.com
From experience, REALTORS® also know that a “well-polished” house appeals to more buyers and will sell faster and for a higher price. Additionally, buyers feel more comfortable purchasing a well-cared for home because if what they can see is maintained, what they can’t see has probably also been maintained. In readying your house for sale, consider:
- how much should you spend
- exterior and curb appeal
- preparing the interior
In preparing your home for the market, spend as little money as possible. Buyers will be impressed by a brand new roof, but they aren’t likely to give you enough extra money to pay for it. There is a big difference between making minor and inexpensive “polishes” and “touch-ups” to your house, such as putting new knobs on cabinets and a fresh coat of neutral paint in the living room, and doing extensive and costly renovations, like installing a new kitchen. Your REALTOR®, who is familiar with buyers’ expectations in your neighborhood, can advise you specifically on what improvements need to be made. Don’t hesitate to ask for advice.
Maximizing exterior and curb appeal
Before putting your house on the market, take as much time as necessary (and as little money as possible) to maximize its exterior and interior appeal.
- Keep the lawn edged, cut and watered regularly.
- Trim hedges, weed lawns and flowerbeds, and prune trees regularly.
- Check the foundation, steps, walkways, walls and patios for cracks and crumbling.
- Inspect doors and windows for peeling paint.
- Clean and align gutters.
- Inspect and clean the chimney.
- Repair and replace loose or damaged roof shingles.
- Repair and repaint loose siding and caulking.
- In Northern winters, keep walks neatly cleared of snow and ice.
- During spring and summer months consider adding a few showy annuals, perhaps in pots, near your front entrance.
- Re-seal an asphalt driveway.
- Keep your garage door closed.
- Store RVs or old and beaten up cars elsewhere while the house is on the market.
- Apply a fresh coat of paint to the front door.
Maximizing interior appeal
- Giving every room in the house a thorough cleaning, as well as removing all clutter. This alone will make your house appear bigger and brighter. Some homeowners with crowded rooms have actually rented storage garages and moved half their furniture out, creating a sleeker, more spacious look.
- Hiring a professional cleaning service, once every few weeks while the house is on the market. This may be a good investment for owners who are busy elsewhere.
- Removing the less frequently used, even daily used items from kitchen counters, closets, and attics, making these areas much more inviting. Since you’re anticipating a move anyhow, holding a garage sale at this point is a great idea.
- If necessary, repainting dingy, soiled or strongly colored walls with a neutral shade of paint, such as off-white or beige. The same neutral scheme can be applied to carpets and linoleum.
- Checking for cracks, leaks and signs of dampness in the attic and basement.
- Repairing cracks, holes or damage to plaster, wallboard, wallpaper, paint, and tiles.Replacing broken or cracked windowpanes, moldings, and other woodwork. Inspecting and repairing the plumbing, heating , cooling, and alarm systems.
- Repairing dripping faucets and showerheads. Buying showy new towels for the bathroom, to be brought out only when prospective buyers are on the way.
- Sprucing up a kitchen in need of more major remodeling by investing in new cabinet knobs, new curtains, or a coat of neutral paint.
Are you interested in selling property? If so, feel free to contact me. I can answer your questions and discuss your best options.
