Real Estate Opinions and Prices: Everybody’s Got One

Posted on May 18, 2012

Where is the market headed?

If you read news on the real estate market then you surely know that even the “experts” do not agree on the future of the market. If there are 100 articles then there are certainly 100 different opinions out there. Some say we have hit bottom and its all blue skies from here on out while others say that we are just now hitting bottom and we are going bounce around down here for a while, and yet there are still those who believe the bottom has yet to come.

My opinion is just that, my opinion, but let me share it anyways. The San Diego markets have seen a slight rebound (so did the stock market and we are headed back towards 12,000 on that) and this is good, but not indisputable evidence that we are out of the woods. Take into account that Jerry Brown is trying to raise taxes (again) but it is unlikely to pass which means budget cuts and possibly more layoffs. The banks have been holding onto some very distressed property that I think they are going to foreclose on in the next 6-12 months. These are not the $300,000.00 dollar homes either. We are talking Golden Triangle (Rancho Santa Fe, Del Mar and La Jolla) homes. If these markets get hit in any way, surrounding neighborhoods are going to feel it. And then there is California’s unemployment still hovering around 11%. That is really high. Not to mention that because of California’s soaring debt and the way they treat businesses, a lot of businesses left the state entirely. (more…)

Competition for San Diego Rentals

Posted on May 17, 2012

The Price of Rentals is on the Rise

Rents in San Diego County are headed up, as they have been for quite some time now. A lot of things contribute to this including how costly it is to buy, the fact that San Diego is a destination for a lot of people and San Diego has a lot of transient residents. What does it mean for the renter? It means there is a lot of competition out there and it’s time to pay to play.

When it comes to the rental market CA Realty Group focuses solely on mid to high-end rentals. This means $2,500.00 per month and above. Due to this we work some very niche markets including La Jolla, Del Mar and Carmel Valley. Each of these areas are in high demand so as a renter you should expect to face off with other people with good credit, no pets, and the ability to give a little extra to put them at the front of the proverbial line. (more…)

FEATURED – Liquidity Returns to La Jolla’s Housing Market

Posted on May 16, 2012

What is liquidity?

Liquidity is the ability to convert an asset to cash quickly with minimal affect to its price. Two key components of liquidity are the amount of time needed to sell the asset and the difference between the between the buyer’s bid and the seller’s asking price. In Real Estate terms these would be expressed as the number of days on market and difference between the original listing price and the price at which the property sold. We are witnessing decreases in both the number of days on market before the property is sold and compression of the discounts at which the properties are being sold. For example, the average discount to full listing price last year was 17.7% (Table 1). This year it has decreased to 11.6% on average. On a two million dollar condo the buyer would be paying $122,000 more than the year prior. A handful of properties have received full asking price offers or sold above the original listing price. When properties begin to get bid up with some consistency, homes will begin to sell for full asking price and multiple offers may increase the bids over full asking price, at which point the market will have turned around. (more…)

How to Balance Client’s Perceptions and Expectations?

Posted on April 13, 2012

CA Realty Group offers MLS access through our website so often prospective tenants assume we are the listing agent for all properties located through our website but we are not. In fact, we specialize in tenant representation and have a high volume of inquiries to sift through each day.

This volume is what has allowed us to flourish in the rental market, but is also our largest challenge. People with all levels of interest reach out to us ranging from those who need immediate assistance to those who are thinking about moving to the area next year. (more…)