Archive for November, 2007
San Diego Real Estate on Par with Detroit?
November 28th, 2007 Categories: San Diego, San Diego News
Say what?
In 2004, San Diego real estate was ranked as the least affordable in the United States. Thousands of San Diegans, priced out of the coastal market, moved to Temecula, Murietta and other outlying and inland areas where homes were more affordable.
These days, according to the National Association of Homebuilders, San Diego has slipped to 16th place in California, with an improved 10.1 percent affordability for median income earners. That is just a whisper above San Bernardino-Riverside and Ontario Counties’ 10.2 percent.
This is phenomenal news, because San Bernardino County has traditionally been home to some of the most affordable real estate in California–and few might have imagined that coastal San Diego would approach the Inland Empire’s affordability levels.
In searching for a market bottom, San Diego has now tied with Detroit in ranking third in the nation for dropping home prices, sharing a staggering 9.6 percent drop in pricing during the past year. This is according to a recent Standard & Poor/Case-Schiller study just reported in the San Diego Union Tribune.
All of this might lead one to think that the San Diego economy is in the same tank as Detroit, or that it has lost its perfect balmy climate and turned into a windy high desert.
But that just ain’t so….
And I don’t know of any period in recent history when San Diego real estate has been compared to Detroit’s.
By my calculations, something is maladjusted when San Diego real estate has nearly the same affordability level as that in San Bernardino or Riverside Counties–and has the same drop in home prices as depressed Detroit. This occurs despite San Diego’s strong economy, low unemployment, and being a premier destination for tourists and affluent international retirees.
Bubble bloggers and others may take aim at me for this prediction, but I believe the bottom of the San Diego real estate market is near.
After all, when San Diego gets thrown into the same tub with Detroit and San Bernardino, we just might have a perfect example of the baby being thrown out with the bathwater.
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Holiday Wonderland in Del Mar
November 27th, 2007 Categories: Del Mar Real Estate
San Diego Christmas and holdiay spirits will come to life in Del Mar on Sunday, December 2 from noon to 5:30 pm
Bring friends, loved ones or the entire family for an afternoon of San Diego fun. The entire downtown Del Mar will be turned over to strolling carolers, Santa Claus, the famous Del Mar Holiday Cake Walk, On the Edge dance performance, holiday gift bazaar, horse and carriage rides, face painting, musicians, kid’s activities and Tastes at Del Mar Retaurants.
Be sure to stop by the L’Auberge Del Mar Ampitheater (northwest corner of 15th Street and Camino Del Mar / Pacific Coast Highway 101) between 4 and 5:30 p.m. for the music and tree lighting ceremony
This Holiday Wonderland event is sponsored by the Del Mar Village Association with support from the City of Del Mar. If tickets are purchased prior to the event, the cost will be 420 for 25 ticket, which covers 2-10 food items and/or activities. The same tickets will be available the day of the event for $25. For additional information, visit http://www.DelMarMainStreet.com
Sponsors for this wonderful Del Mar event include L’Auberge Del Mar, Time Warner Cable, the Del Mar Thoroughbred Club, the 22nd Agricultural District, Bob and Kathy Angello with Willis Allen Real Estate, Backstage Boutique, Celine’s Boutique and Gifts, Chiquita Abbott Realtors, Clone Printing and Duplicating, Crepes and Corks Cafe, Del Mar Heights School PTA, Del Mar Hills School PTA, Dexter’s Deli, DiCaro, Coppo & Popke, www.DiscoverSD.com, En Fuego Cantina Bar and Grill, Joel Politzer and ITZ Fixed Computer, Kim Filanc with Coldwell Banker Real Estate, J Carl Shoes, Jimmy D’s Sports Bar and Restaurant, Ryan’s Collection, Pacifica Del Mar Restaurant, Soul Shine, Jim Watkins and Stratford Square, Union Bank of California and Willis Allen Real Estate.
A big, merry thanks to these Del Mar sponsors and we look forward to seeing you in Wonderland!
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Valley Center Golf Course Fire Sale (Not really)
November 26th, 2007 Categories: San Diego Golf Courses, San Diego News
by Blake Cory
I couldn’t believe my eyes when I saw A.P.’s report that the popular North San Diego County Woods Golf Course was sold last week for a paltry $3.2 million to an undisclosed buyer.
My amazement stems from the fact this is a highly-desired North San Diego County community with excellent schools and a relatively close proximity to freeways and colleges.
The Woods Valley Golf Course is a 163-acre, par 72, 18-hole course located close to Harrah’s Casino and is central to the Newlands Community project in Valley Center. This new housing development will eventually host 270 country homes spanning a 430-acre territory. Pricing for these North San Diego County homes in Valley Center will range from $450,000 to $1.2 million.
This Valley Center golf course is located at 14616 Woods Valley Road–and is part of the Newland Communities project in Valley Center.
Stay tuned for further developments!
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1756 Verdin Court in Poinsettia Heights, Carlsbad, CA 92011
November 26th, 2007 Categories: Aviara Real Estate, Carlsbad Real Estate
This Carlsbad home sold in less than three weeks back in 2003, and at that time we set a record for the highest price ever paid for this 1720 square-foot model: $446,000.
And what a Carlsbad listing it was–with a great story to boot.
This highly upgraded Poinsettia Heights townhome with views over Carlsbad to ocean was nothing short of what San Diego real estate buyers were seeking in those days. The wife, in decorating this Aviara home, dismissed all costs. She buffed it out with new diagonally-laid tile flooring downstairs, new granite kitchen, marble master bath, and a powder room whose ultimate cost had yet to be revealed to the husband. To appease him and redirect attention, another king’s ransom was spent on the garage with gleaming epoxy flooring, tool cabinets and over-the-top garage storage.
Located adjacent to the Carlsbad community of Aviara, Poinsettia Heights is a gated community near parks, the South Carlsbad State Beach, good schools and shopping.
For current availabilities in gated Poinsettia Heights, call Mike or Roberta Murphy at 760-402-9101/9102 or toll free at 877-818-8197.
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Tax Relief for San Diego Fire, Landslide and Market Victims
November 25th, 2007 Categories: Market Trends, San Diego, San Diego News
This has been a tough year for America’s Finest City. There has been destruction of homes by wildfires and landslides. Then there’s the San Diego real estate market which has taken a needed serious slide that has resulted in a record number of foreclosures and short sales.
But all is not gloom and doom for San Diego County property owners.
Those whose homes were damaged or destroyed by the 2007 fires and La Jolla landslides–and who suffered at least $10,000 in damages–should file a claim with the Assessor’s Office within twelve months of the damage occurrence.
This tax relief also extends to mobile homes if they have property tax assessments (versus state license fees) as well as citrus, nut and avocado groves if at least $10,000 in damage occurred to the trees, irrigation systems and other appurtenant structures. Crops are not included in damage assessments because they aren’t assessed for property taxes.
Once a home is rebuilt, San Diego property owners will be able to retain their original assessed value as long as the home is rebuilt in a manner similar to the original construction. Added square footage and substantial extras such as additional bathrooms will be added to the base year valuation at full market value.
If you are one of the San Diego home buyers who purchased in the last couple of years and your home’s value has declined below its assessed value, you can also appeal to the County Tax Assessor for an adjustment in your property tax basis. Once the market recovers, the property will be reassessed at its original value.
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Where is the San Diego Market Bottom?
November 24th, 2007 Categories: Market Trends, San Diego, San Diego News
We keep hearing that buyers are sitting on the sidelines, wondering when and where the bottom of the San Diego real estate market might settle.
Yet when foreclosed homes are listed much below market value, our San Diego investors and buyers are encountering (and participating in) multiple offers that push the price into true market value range.
And where does the bidding stop?
At, or close to, true market value.
These circumstances are nothing like San Diego real estate auctions, where a mix of amateurs and seasoned pros are bidding against each other in a noisy frenzy. Properties are sold as-is and buyers must be prepared to pay a buyer’s premium that ranges between 5 and 10 percent of the ultimate sales price.
Under normal listing circumstances–which may include foreclosures, buyers are urged to make their best offer up front, and be prepared for the seller’s counter offer. Buyers are given hours or days to respond, instead of auctioneer’s seconds.
The good news is that San Diego’s real estate market does have a bottom. It is one that obviously varies upon location. In Chula Vista, Otay Mesa and other South Bay areas, the bottom may be bouncing around 2004 prices (and even lower in certain neighborhoods). Around the coast, prices seem to be hovering around 2005 pricing–or even better if the property is located on the ocean, or has a rare ocean view.
We watch the San Diego real estate market constantly, and use our own published market statistics with our clients from here and abroad. San Diego will always be more expensive than Dallas, Miami, Minneapolis or Scottsdale, if only because of our incomparable year round climate. For that reason alone, our real estate pricing will not collapse as it might in certain other areas. San Diego’s economy is strong, its desirability is global, and few wish to leave this paradise. After all, why buy in a place where you have to leave for three to five months out of the year to escape a yucky climate?
More and more, we hear that people choose to live or retire in San Diego County–and never plan to leave.
San Diego is rarely an interim stop.
Could the same be said of Dubai?
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San Diego Irresistable to Expats and Foreigners
November 22nd, 2007 Categories: Carlsbad Real Estate, Coronado Real Estate, Del Mar Real Estate, Encinitas Real Estate, La Jolla Real Estate, la costa real estate
It had to happen sooner or later.
With the falling dollar, San Diego area real estate has become a screaming bargain to foreign investors around the world. Real estate prices in many prime US locales have already declined, and must be irresistible for those who are seeking to purchase San Diego luxury homes and condos with Euros or Canadian dollars.
Now, many Americans who have been living abroad are considering a return home, where the purchasing power of the dollar isnt being decimated every other day. From their perspective, real estate in Florida, Arizona, Nevada and California look like the same bargains Canadian and Euro-packing investors are buying.
We received a call earlier this week from an American living abroad who intends to sell his inflated European estate and move to the sunny and balmy climes of San Diego. He will exchange his invested Euros for dollars, and invest them in blue chip American real estate, where he and his wife can enjoy an active retirement in Americas Finest City.
San Diego’s own Brian Brady with Mortgage Reports wrote a recent article about how Canadian real estate investors are buying American real estate in droves. Brian is currently working with one Canadian real estate investor seeking to buy a Scottsdale, Arizona home, while another Canadian is looking for a second home on the San Diego coast.
Both investors from Canada will enjoy not only the depressed pricing in both real estate markets, but will also appreciate their Canadian dollars (aka Loonies) buying 30 percent more than they would have a year ago.
Many Americans living in Canada may also be considering a move back across the border, because the cost of living in the United States now is so much less than a Canadian lifestyle–which must be paid in Loonies.
In the years ahead, it will be interesting to see how many second homes in America are owned not only by foreign nationals, but by former American expatriates as well.
In the meantime, we welcome back America’s own–as well as those seeking a coastal San Diego retreat. We can assist not only with finding that special property in La Jolla, Coronado, Del Mar, Solana Beach, Encinitas, Carlsbad or Oceanside, but can also provide solid help with finding appropriate financing.
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Vista, CA Luxury Estate
November 18th, 2007 Categories: San Diego News
Sometimes you walk into a home, sense both ageless soul and serenity and cant help but smile.
We recently listed such an estate in the beautiful hills of Vista, California. Its current and original owners are a spirited and beautiful international opera singer and her dashing husband, a retired professor of art. With loving attention to detail, it seems nothing was missed in the completion of this luxurious 2003 custom home.
When I first walked into the home, I was struck by the use of old and rich colors, antique woods, the graceful wood and iron staircase, and light classical music that filled the rooms.
At first glance, I knew this home would be exceptional.
The gated hilltop setting offers both ocean and mountain views as well as quiet privacy. The homes flexible 4000+ sf floorplan has volume ceilings that carry classical music well, a grand foyer, large living and music rooms, multiple dining areas, and a kitchen Alice Waters might envy.
Upstairs, we discover a substantial master suite with an adjoining study, large dressing room and bath, 
spa tub, and large, organized closets. A romantic trellised balcony overlooks both the mountains and ocean horizon, while the two-way fireplace warms both the bedroom and bath areas. Three other large bedrooms and an open bridge complete the upstairs.
The bones of a home may be magnificent, but inspiring beauty comes from surfaces, windows, doors, lighting, amenities, color and textures. I share clients enthusiasm when all of these elements come together.
This home lacks nothing and blends all elements well. It has rich Tuscan colors, art niches and unfluted columns. It beautifully blends the use of stone, iron and woods, and offers contemporary conveniences such as central vacuum and a discreet kitchen vent that captures broom sweepings.
Outdoors is a large covered patio, lawn, gardens and small acreage for hobbies, horses or arborists.
I have often thought that equestrian homeowners in Poway, Rancho Santa Fe and Fallbrook who were displaced by the recent San Diego fires might find this property of interest.
Located on highly-desired Elevado Street in Vista, this estate is reasonably offered at $1.5 million by owners who are anxious to retire in Crete.
We intend to help them accomplish this dream and look forward to having terrific clients in such a wonderful corner of the world.
If you would like the opportunity to preview this luxurious Vista estate, please call Mike or Roberta and we’ll make arrangements to do so! Call 877.818.8197 or 760.402.9101/9102.
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Leucadia Beach Cottage in Encinitas, 92024
November 13th, 2007 Categories: Encinitas Real Estate, Leucadia Homes
This cute Leucadia beach area cottage at 255 Leucadia Boulevard in Encinitas recently closed escrow at $640,000.
Located on a prime 8000+ square foot Encinitas lot, this vintage (ca 1925) 2-bedroom cottage has quaint original windows and hardwood flooring. Except for the new kitchen, it is easy to imagine what life was like eighty or so years ago, when Encinitas and Leucadia were tiny spots on California’s coastal map.
The gardens outside feature citrus and other native fruit trees along with an abundance of wildflowers.
Inside, the prior owners had lovingly refinished the hardwood flooring throughout and installed all new plumbing and electrical. The new hot water system is tankless, and the kitchen has updated appliances and a new glass door leading outside.
This property would likely qualify for historical status and benefits, but that would probably diminish the possibilities of this property, which has R-2 zoning.
For information on this and other Leucadia homes for sale, please call Mike or Roberta Murphy at 760-402-9101/9102 or visit our San Diego Real Estate site
Also visit:
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The Real Estate Commission Conundrum
November 12th, 2007 Categories: Market Trends, San Diego News
A year or so ago, real estate circles were abuzz with argument and discussion about the pros and cons of discount real estate services and commissions. Discounter Redfin had opened with one agent in San Diego, and their CEO Glenn Kelman promised that real estate discounters would turn the real estate brokerage business either upside down–or inside out (I don’t recall which).
Beating Kelman at his own venture was Iggy’s House, which would list one’s home for free, and a corresponding sales arm that rebates even more than Redfin. In between the two were countless other ventures that vied against each other in real estate commissions and levels of service.
In the ensuing months, we began to see not a decrease in real estate commissions, but instead a rise in commission offerings. Builders and desperate sellers were offering 3, 4, 5, 6, 7 and even 8 percent sales commissions on their properties. (Of course, with inflated commissions we tend to suspect inflated pricing and share this with our clients.)
It is unimaginable to this writer that the U.S. Department of Justice could even think that the real estate industry is capable of controlling anything, let alone commissions. Brokers have long lamented that trying to control real estate agents is no easier that trying to herd cats. If they can’t convince agents to attend weekly sales meetings, how could one think that they could possibly “set” commissions that their independent contractors charge their clients?
So what is the commission and service situation in today’s more challenged real estate market?
According to the National Association of Realtors, the latest survey of buyers and sellers showed that 83 percent used full-service agents last year, while 9 percent used limited-service agents and 8 percent needed only minimal service.
Of course, I can’t resist adding my own simplistic opinions regarding the issue of full service versus discounted commission/service real estate brokers. These answers of mine came as a result of one questioner’s queries on Trulia regarding the advisability of using a discount real estate broker:
Pros: You may save on commission.
Cons: You may not.
Pros: You may gain valuable experience in selling real estate on your own.
Cons: You may never want to go there again.
Pros: It can be a workable strategy in a seller’s market.
Cons: It could be disastrous in a buyer’s market.
(You seriously ask a very good question. I just can’t resist simple answers–and wish you well regardless of your listing strategy!)
We have been in an indisputable Seller’s market in San Diego for some time. Now, more than ever, real estate buyers and sellers need expert guidance in the purchase and sale (or lease) of their San Diego property. Your ultimate success in the purchase or sale of real estate in the San Diego marketplace will depend not only on expert guidance, but timing and flexibility.
Commissions become somewhat irrelevant when 1 percent in value per month could easily be lost to a sliding market. This makes it more important than ever for sellers to employ the services of seasoned and knowledgeable real estate professionals–and for buyers to do the same.
For additional reading abour these real estate issues:
Why You Always Need a Good Buyer’s Agent
New Real Estate Danger: Cancellation Fees
Encinitas Bluffs, But It’s No Joke
Palomar College Beefs Up as Agents Drop Out
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