Living in Paradise

Sometimes, when you live and work in a gorgeous vacation destination like Del Mar California, you find that you don’t often get a chance to take advantage of the many attractions the area has to offer – you’re too busy living life!

A weekend getaway at The Lodge at Torrey Pines in La Jolla CA

This past weekend, I had the opportunity to play “tourist”.  A friend (who also happens to be my hairdresser and the owner of Do’s and Lipstick, an upscale salon located in the design district on Cedros in Solana Beach CA) mentioned he had a connection at The Lodge at Torrey Pines.  He had arranged through her to have a weekend getaway at the Lodge at a phenomenal rate, but was going to have to cancel – instead of letting it go to waste, the sweetheart that he is, transferred the reservation to my husband and me!

A perfect place to stay while looking at Del Mar CA homes

What an exquisite place!  Situated adjacent to the world renowned Torrey Pines Golf Course on the ocean bluffs in La Jolla, just a mile and a half from Del Mar CA, this craftsman style resort offers spectacular golf course views, majestic ocean vistas and fresh sea breezes.  For those of you exploring the possibility of purchasing a second home here in Del Mar CA or La Jolla CA, or perhaps those who might want to relocate to this neck of the woods, I can’t think of a more idyllic spot to stay while looking at Del Mar CA real estate.

Give me a call – I’ll help you negotiate the best price for your very own piece of paradise!

High activity in the low end of North San Diego County

Those of us living and working in higher end North San Diego County markets like Del Mar CA have been watching other areas of the county bottom out and, in fact, become hot markets.  Many lower priced neighborhoods have had large numbers of short sales and REOs, and buyers have taken advantage of this great opportunity to buy at hugely discounted rates.  This increased activity had led to multiple offers and overbids.

In contrast, almost no activity in Del Mar CA… until recently!

Not so with Del Mar CA homes, Solana Beach CA property and other higher priced neighborhoods. Until recently, listings simply weren’t moving.  Del Mar prices were steadily declining until the end of last year.  Well, chin up, Del Martians!  Property, at least Del Mar CA property, is finally beginning to sell!

Del Mar CA is heating up!

Comparing the number of new listings with the number of new sales in any given month since the beginning of 2009, the ratios are finally showing improvement. Back in January, there were 34 listing new Del Mar detached home listings, while only 7 listings went into escrow during that same period.  This imbalance leads to increased inventory and declining prices.  In contrast, 30 detached Del Mar CA homes were listed in May, and 19 listings went into escrow! 

Here’s the data for the first 5 months of 2009.  The graph shows the ratio of new listings/new sales.  A smaller number means the inventory is decreasing:

Del Mar CA home sales

At a ratio of 1.6 new listings per new sale for the month of May, we are actually approaching a healthy balance, and, if this keeps up, prices will start to creep back up.

Another view, looking at the last 12 months, shows the steadily increasing number of new escrows since its lowest point in Ocober of 2008:

Del Mar CA home sales vs new listings

If you’re interested in relocating to Del Mar or in investing in Del Mar CA real estate, please give us a call (760-815-1318) soon or visit our website DreamHomesByTheBeach.com.  Don’t let this opportunity pass you by!

Statistics have always intrigued me – in part because they are so malleable. It’s easy to manipulate the numbers to argue just about any point you want to make.

The high end areas in San Diego County like Del Mar, Solana Beach and Rancho Santa Fe are still in serious decline, with very little activity and large inventory sitting on the market. 

An interesting analysis I recently did shows why the sellers had better get on board with the new reality or they will never sell their home.   I compared the price per square foot of homes that are active on the market (i.e. “not selling”!) with those that have sold, and more specifically, with those that have sold in the last 12 months, 6 months, 3 months, 2 months or 1 month.  I focused on Del Mar Ca real estate, since, after all, that’s where my office is and where much of my business tends to be.  I also restricted the analysis to detached homes in the $1m-$3m range, since that is the most representative niche in Del Mar.

Here are the raw numbers:

• 99 actives (NOT selling)
• 58 sold over the last 12 months
• 20 sold over the last 6 months
• 12 sold over the last 3 months
• 7 sold over the last 2 months
• 2 sold over the last 1 month
• 11 pending (in escrow)

When looking at the price per square foot of the Del Mar homes that sold in these periods, we see a trend:

• actives -      $784/SF
• 12 mo -      $604/SF
• 6 mo -        $573/SF
• 3 mo -        $518/SF
• 2 mo -        $554/SF
• 1 mo -        $322/SF
• pending -     $479/SF (once these close, the final sales price per square   foot [SP/SF] will be much lower, as the $479 is based on ASKING price)

A more visual depiction:

Del Mar Ca - Price per Sq Ft as function of period sold

In other words, those Del Mar properties that have sold more recently are those with a much lower price per square foot.  Del Mar listings still sitting on the market NOT selling, at an average of $784/SF, are simply OVERPRICED.  Of course price per square foot is not the only factor in selling a home, however, this analysis is certainly a telling indication of what’s selling!

For solid, realistic input on where you need to be priced in order to sell your Del Mar Ca home in today’s market, give me a call (760-815-1318) – I’d be happy to give you an honest assessment, with no obligations or strings attached.

I found myself stuck in another traffic bottleneck this morning.  It took me half an hour to drive off the exit ramp and creep the 1/2 mile to my Coldwell Banker Del Mar Village office.  And, what gets me is that it was totally avoidable!

Del Mar Fairgrounds

I ought to know better after living and working next to the Del Mar Fairgrounds for the last 20 years!  Summer after summer, we locals learn to arrange our schedules around the traffic patterns generated by the San Diego County Fair and the race track season.  The problem is we forget that the Fairgrounds are also used throughout the year for a variety of events. In fact, the facifilites are used for over 350 events a year.  They include weddings, receptions, equestrian and other animal shows, concerts, craft shows, home shows, car shows and other social and consumer events.

When there’s an event going on, it can take hours to go a mile, and sometimes, there’s no way to turn around and take another route.  It can be rather frustrating, to say the least, and as I mentioned, it’s totally avoidable!  I am hereby promising myself to visit http://www.sdfair.com/ and check the schedule once a month to make sure I know what times and days to avoid.  Hey, and who knows?  I may even learn about an event I wouldn’t want to miss!  For example, I’m sure my 2 yr old and my 4 yr old would enjoy the circus that’s coming next week – I never would have known about it had I not written this post and checked the schedule!

If you’d like to take advantage of the great prices out there and buy a second home – a launching pad, so to speak – to all the wonderful events at the Fairgrounds, give me a call (760-815-1318)!  It is a phenomenal time to buy.  Or, if you just can’t take the traffic anymore and want to sell your Del Mar CA home, I have buyers for you!  Give me a call!

Low end has hit bottom, but Del Mar is still on the way down

While the lower end in San Diego County is selling like hotcakes, with multiple offers and major frustration for those trying to purchase, the buyers still have the upper hand in higher end markets like Del Mar. 

Depreciating vs Appreciating Market

The de facto definition of a depreciating market is one where the rate at which inventory is coming on the market is faster than the rate at which property is going into escrow.  Your basic supply/demand equation…  The low end in San Diego County – everywhere from Oceanside, Vista, and San Marcos to Clairemont, Linda Vista and Mira Mesa – is seeing a definite slowing in new inventory and a huge number of new escrows.  From what I can see, they’ve already hit bottom.  The demand is putting pressure on prices, which are bound to start creeping up soon as a result.  In contrast, home prices in Del Mar, Carmel Valley, Solana Beach, Rancho Santa Fe, and other high end coastal North San Diego County markets, have yet to hit bottom.  The following graph showing says it all:

Del Mar CA Market Activity - a declining market

This set of circumstances provides an incredible opportunity for those interesting in getting their foot in the door into Del Mar Real Estate.  For the inside scoop on the great values, give me a call (760-815-1318) or do your own research on our site DreamHomesByTheBeach.com.  Don’t let this market pass you by!

Rampant short sales and huge lender losses

I understand the pain lenders must feel with all the losses they are suffering right now.  So, why doesn’t someone from within, from within and above, streamline the process so they can minimize their losses and move on??  The extent of the bureaucracy is unbelievable.

The short sale process: a classic bureaucractic quagmire

A prime example of lenders cutting off their noses to spite their faces is what’s happening with my clients P and T.  They are all cash buyers, ready to act swiftly and close within a couple of weeks, but looking in areas where virtually every listing is a short sale or a foreclosure.  We restricted our search to properties whose listing agents had specifically told us they were extremely close to getting bank approval.  We wrote offers on two properties, both with reassurances that we should have an answer within a week or two at the latest.  It has been 6 weeks with the first, and almost 5 with the second.  We get no courtesy updates, no calls even inquiring whether we are still in the game or have found another property. 

The perfect property with an imperfect agent

Meanwhile, we’ve been keeping tabs on the market, checking out new listings, hoping for an REO (banked owned) property that would meet their needs – these sellers (i.e. the banks) generally respond quickly and we’d be able to close in a couple of weeks.  No such luck, but we did find The Perfect Property.  The problem is,

1. it’s a short sale,
2. it just came on the market, and
3. the listing agent has done no homework. 

This particular listing agent lists homes with particularly low prices to generate lots of offers, submits them ALL to the lenders (there’s a first and a second trust deed holder), and then waits for them to make sense of them all.  While the banks are proceeding with the short sale approval process, he continues to submit offers as he receives them, bogging down the system.  Eventually, the lenders come back with a minimum approved figure, of which the listing agent then informs all buyers, giving them an opportunity to respond with their highest and best offer.  Then, buyers must wait again for the next round of bureaucrats to assess the offers and pick one. 

A very long wait

We were informed this process would take 90 days!  Here are a couple of high quality buyers, willing to pay FULL price, all cash, and the lenders are stupid enough to risk losing them.  It all could be settled within a matter of a couple of weeks.  But because the lenders haven’t taken the time to create an efficient system for dealing with offers, and because the listing agent is lazy and doesn’t want to do the extra work of finding the best offer to present to the lender, we have to sit around and wait for this inefficient process to run its course…  We may or may not stick around…

The continued weather reports of the gripping cold across the Midwest and upper northeast have once again made me aware of how lucky I am to live in San Diego California.  Today is sunny, clear skies, and in the 70′s! 

I find it so easy to become complacent and just go about my life, mostly outdoors, without the thought of putting on a heavy coat, hat, gloves and warm boots.  There are no problems with skidding on ice or having my windshield wipers on extra fast to clear the pouring rain! 

Yes, I pay heavily to live here – a smaller home at a higher price – but to me it’s worth it.  While many are spending time in their homes in front of their fireplaces, I am about to take a walk on the beach! 

I live in North County Coastal San Diego, where the surf meets the turf in Del Mar, and, on a clear day like today, one can see islands 100 miles away!   Well, off to get my sunscreen and book and head to the beach!

While those of us working in Del Mar Real Estate are having a very slow month, our colleagues to the north can barely keep their head above water. 

Hot Real Estate Deals!

The market in Oceanside, Vista, and Fallbrook is so hot for buyers, just about every listing has multiple offers!  I’ve been working with several clients looking for homes in those areas, and we’re seeing homes that sold for $450k back in 2004 selling for as low as $150-$200k today!  From townhomes to detached bungalows, there are some unbelievable deals out there right now.  No wonder this is where all the activity is!

North San Diego County Real Estate Sales

Public officials and news commentators often complain about how we Californians are too in love with our cars to use public transportation.  While I agree we are fairly addicted to our own personal set of wheels, I am certainly willing and would be happy to take a bus or train from time to time and avoid sitting in traffic.

The problem is, the schedules and routes available leave a lot to be desired, and I often have no choice but to drive myself.

Take the day before yesterday, for example.  I thought it would be a fun outing for my family (my husband, my 2 year old boy and my 4 year old girl) to head to downtown San Diego from our north county beachside community, Cardiff-by-the-Sea.  It’s only a 20 minute drive, but I thought part of the fun would be to take the commuter train “The Coaster” down there and back. 

(Buses weren’t an option unless we were willing to transfer 3 times and spend our entire day just on getting there.)  So, I went online and looked up the Coaster schedule – NOT a single train on Sundays!  I guess it’s only for commuters – well, only for M-F commuters… 

So then I checked Amtrak- I know I’ve often had to sit and wait for passing trains on a Sunday, so, I think to myself, there must be plenty of trains scheduled throughout the day.  Well, there were several options – can’t complain there.  Almost one train an hour.

The shocker was the fee - they charge $18 round trip for 1 adult!  My 4 year old could go at half fare, and the little one was free, so our total came to $45 – just to go 20 minutes down the coast.  Had the Coaster been available it would have cost us $24 total – better, but still hardly what one would expect after living in a city like New York, where a 20 minute ride costs a few bucks…  No wonder people drive themselves.

Depressing Times

This has been a depressing time, particularly for those of us in the real estate industry.  Well, in fact, for everybody!  The economic crisis has spread around the world, and few are immune to its devastation.  I have watched so many lose their homes whether through foreclosure or being forced to sell short.  Lovely families with small children, elderly who had recently downsized, up and coming yuppies who had bought their first condo.  Even those San Diego homeowners whose mortgages are of the good old fashioned 30 year fixed variety are struggling because they have lost their jobs. 

Wide Range of Price Adjustments

In San Diego County, the drop in real estate values spans the gamut.  I’ve seen as low as 10%-15% adjustments in some of the coastal communities like Del Mar, Solana Beach and Carmel Valley; 50% in several areas with lots of newer track homes like Chula Vista and San Marcos; and as high as 70% drops in some areas like Vista, Fallbrook and Oceanside. 

The Silver Lining

So can there possible be a silver lining to all of this?  Well, one’s loss is another’s gain.  The fact is that the affordability index has tripled in North San Diego County Real Estate over the last year, from 10% in November 2007 to 30% in November 2008.