October 20, Weekly Analysis

 

No new listing this past week or the week before. That is unusual, but I know that at least one home was listed but is being held off market for just a few days.

One home went into Pending: 10444 Meadow Glen Way East, a 3/4 of 3,224 s.f. which was listed at $499,000, and had been on the market 26 days.

No homes closed escrow this past week.

The “housing market” nationally continues to give mixed messages. Home sales nationally rose 11% over the same reported month last year, but are down slightly this year from the recently previously reported month of this year. Naturally, home sales vary depending on the geographic locations and the market pricing, with lower-priced homes showing the best sales.

That makes sense in a housing market bouncing along the bottom, as more salable geographic locations are selected first by buyers and investors, and competition for lower-priced homes causes a rise in both the sales and prices of those homes.

Regrettably, the more expensive homes languish, and actually the price spread between lower-priced homes and higher-priced homes narrows, making higher-priced homes more desirable. There just isn’t the confidence in the higher-priced buyer market for those higher-priced homes right now, except for a few bargains.

One problem is we are in the election cycle – meaning apprehension and uncertainty – at the same time Europe is in economic chaos and the Asian markets are slowing. (Asia depends upon our imports and Europe is 25% of our exports.)

The housing market is trying to recover at the same time the overall economic market is looking just a bit brighter. Foreclosures in San Diego County are down, but the regular sales will still have to compete with Foreclosures and Short Sale prices for more than one more year. Those distress sales keep prices down for everyone.

 

 

October 6, Weekly Analysis

Three  new listing this past week, and they are highlighted on the list.

Two listings went into Pending this past week: 10117 Meadow Glen Way East, a 3/4 of 2,848 s.f. which had been on the market 7 days at $597,000, and 28536 Mountain Meadow Road, a 3/3 of 3,000 s.f. which had been on the market for 172 days at $636,500.

One home closed escrow: 10160 Boulder Knolls Drive, a 5/3 of 3,122 s.f. which had been on the market 76 days and sold for $539,000.

Please note that all of the Pending and Sales activity is above $500,000 and MAY be an indication that homes above the $500,000 number, albeit only slightly above that $500,000 level, are now being considered by Buyers. We can only hope that is a continuing trend, because if you will note the Market Time of those first five or ten homes (least expensive) on the list, and compare that to the Market Time of the bottom five or ten homes (most expensive), it is apparent that our higher priced homes stay on the market for much longer. While that is always so, it is never so grossly apparent as it is today.

Another thing to note is that the list is stable to growing. Fewer homes are sold overall as we approach the cooler months. We can expect the list to flood over to the second page as the weather cools, and so does the ardor of the buying public.

I will continue to add caveats for newer readers: $/s.f. is an ALMOST meaningless number in custom homes in general, and luxury homes in particular. My $1,950,000 listing on Alps Way is a good example, because the “square footage” does not include a 1,000 s.f Guest House, or a 2,800+ s,f, workshop that is built to the same standards as the listed home, including air conditioning, heating, and it has 480 volt, three-phase power! None of that is accounted for in the $/s.f. figure.

$/s.f works well in tract homes where one Santiago model will be much the same as another Santiago model. $/s.f. simply does not work well for homes of vastly different construction, with great differences in quality, outbuildings and views. I include it simply as a “quick and dirty” reference, and because buyers want it.

September 29, Weekly Analysis

Four new listing this past week, and they are highlighted on the list.

Three homes went into Pending this past week: 10028 Sage Hill Way, a 4/3 of 2,194 s.f which had been listed for $341,900 (my sale); 28651 Mountain Meadow Road, a 3/3 of 3,471 s.f. which had been listed from $399,000 — $426,000; and 9533 Sage Hill Way, a 3/3 of 3,255 s.f. which had been listed for $582,000.

One home Closed Escrow (Sold) this past week: 10611 Cerveza Dr. a 4/4 of 2,997 s.f. which sold for $509,000.

The Hidden Meadows market continues to be hot in the price ranges under $600,000 and cold above that price. The good news is that nationally, there are some positive signs and with the exception of those markets that seldom have major price reductions (such as homes with ocean views) and those positive signs are most positive in areas most hard hit. That is a good sign only because all markets cannot stand one area getting too far outside of whatever is its normal position. So long as our weather remains warm, we can hope for continued good results, and given that even our bad weather is not all that bad, perhaps the good sales will continue over the “winter” months.

I make that sunny hope on the multiple offers currently being made on well-priced homes under $450,000. I spoke with of my investors last week and his three latest purchases are remodeled and in escrow, and he is in the market for several more homes. Those investors who “flip” homes in the low market are going to be in play so long as prices remain low. In general, these investors pay cash, so low interest rates are immaterial for them but are important to their Buyers.

These low interest rates are taking money from retired people’s savings – savings that they had depended upon for retirement. It’s called “income redistribution,” and it is purely artificially being forced upon the public by the Federal Reserve manipulating the market. Whether it is a good thing or a bad thing depends upon if you are a retired person living on CD’s or a young buyer looking for a first home.

September 22, Weekly Analysis

Three new listing this past week, and they are highlighted on the list.

No Meadows homes went into Pending, and only one home closed escrow: 28021 Grassy Way, a 3/2 of 1,768 s.f. which sold for $330,000 having been on the market 131 days.

There are continuing articles in local newspapers about gains in the “Real Estate Market.”

This is misleading, because there is no “real estate market.” There are MANY real estate markets.

The “real estate market” in Rancho Bernardo, with its many community centers, national reputation and acclaimed Poway Unified School District is vastly different from Hidden Meadows, which came by its name honestly. We have no schools, no neighborhood community centers, we have an address of Escondido that has poor schools even by poor California standards, and a community reputation that is less than sterling. It would help our prices if we had a different address, because the fact that we are not actually in Escondido appears to some people as a distinction, not a difference.

There is a belt across North County from north coastal cities, through Encinitas, Rancho Santa Fe, Crosby Ranch, 4S Ranch, Rancho Bernardo and North Poway that always sells well regardless of the market.

Even within Hidden meadows there are sub-markets that I have mentioned before: Homes in the investor and first-time homebuyer market often get multiple offers and sell quickly. (They may not close quickly because the lenders, particularly lenders of homes in short-sales and foreclosures, are not overly cooperative these days.)

Homes in the Executive market and the Luxury Market in Hidden Meadows have not caught up to the sales rate of the lower priced homes. Homes above $600,000 have always been our “move-up” market – sellers of lower priced homes purchased “up” when their jobs were secure and their business flourished.

More recently, the sales of normally priced homes have been by people underwater, or elderly and moving to retirement homes, or foreclosures and short-sales rather than the usual “move-up” people whose businesses are flourishing. Consequently, until the overall business market improves and confidence returns, the “move-up” market is just marking time.