San Diego Real Estate News

You’ll find our blog to be a wealth of information, covering everything from local market statistics and home values to community happenings. That’s because we care about the community and want to help you find your place in it. Please reach out if you have any questions at all. We’d love to talk with you!

 

Dec. 28, 2022

What Is The Federal Reserve?

The Federal Reserve, also known as the "Fed," is the central banking system of the United States. It was established in 1913 with the passage of the Federal Reserve Act, which was signed into law by President Woodrow Wilson.

Before the Federal Reserve was created, the U.S. financial system was characterized by frequent bank runs, panics, and financial instability. In response to these problems, a group of bankers and politicians came together to propose a central banking system that could provide a more stable and reliable source of credit and financial services.

The Federal Reserve Act created the Federal Reserve System, which consists of three key components: the Board of Governors, the 12 Federal Reserve Banks, and the Federal Open Market Committee (FOMC).

The Board of Governors is a seven-member board that oversees the operations of the Federal Reserve System. It is responsible for setting monetary policy, regulating banks, and providing financial services to the government.

The 12 Federal Reserve Banks are located throughout the United States and serve as the operating arms of the Federal Reserve System. Each bank serves a specific geographic region and is responsible for carrying out the policies of the Federal Reserve.

The FOMC is the policy-making body of the Federal Reserve and is responsible for setting monetary policy. It is composed of the seven members of the Board of Governors and five of the 12 Federal Reserve Bank presidents.

The primary purpose of the Federal Reserve is to promote a stable and efficient financial system. To achieve this goal, the Fed uses a variety of tools and policies to regulate the money supply, manage interest rates, and provide financial services to the government and banks.

One of the main tools used by the Fed to achieve its goals is the setting of short-term interest rates, known as the federal funds rate. The Fed can raise or lower this rate to influence the overall level of interest rates in the economy and to achieve its monetary policy goals.

In addition to its role in monetary policy, the Fed also plays a key role in the regulation of the banking system. It is responsible for setting and enforcing rules and regulations for banks and other financial institutions, and it has the authority to examine and supervise these institutions to ensure that they are operating in a safe and sound manner.

Overall, the Federal Reserve does play a critical role in maintaining a stable and efficient financial system in the United States. Its policies and actions have a significant impact on the economy and the financial well-being of individuals and businesses. Many people have differing opinions on the Federal Reserve, with some even questioning it's need to exist. Could our economic system survive without the Fed's existence? What are you thoughts?

 

 

Posted in Market Updates
Dec. 16, 2022

Your First Income Property

Thinking of buying a rental property?

 

If you're looking to diversify your investment portfolio and generate additional income, buying investment properties may be a good option for you. While buying and managing rental properties can be challenging, it can also be a rewarding and profitable venture if you approach it with the right mindset and strategy.

One of the first steps in getting started with buying investment properties is to carefully research the market and understand the local real estate landscape. This will involve looking at factors such as the local economy, population growth, job market, and rental rates to determine the potential demand for rental properties in the area.

Once you have a good understanding of the market, the next step is to identify potential properties to invest in. This will involve looking at listings, attending open houses, and working with a real estate agent to find properties that meet your investment criteria. When looking at properties, it's important to carefully consider factors such as location, condition, and potential rental income to determine which ones will be the most profitable.

Once you've found a property that you're interested in, the next step is to negotiate a purchase price and secure financing. This will typically involve getting a mortgage from a bank or other financial institution, and it's important to carefully compare rates and terms from different lenders to make sure you get the best deal possible.

Once you've purchased the property, the next step is to make any necessary renovations or repairs and prepare it for renters. This may involve updating the kitchen and bathrooms, painting, and making any necessary repairs to ensure that the property is in good condition.

Finally, the last step in the process is to find tenants and start collecting rental income. This will involve advertising the property, screening potential tenants, and managing the property on an ongoing basis. It's important to have a good understanding of landlord-tenant laws and to be prepared for the challenges and responsibilities that come with being a rental property owner.

Overall, buying investment properties can be a great way to diversify your investment portfolio and generate additional income. However, it's important to approach it with a clear strategy and a good understanding of the market and the challenges of being a landlord.

Contact us if you'd like more information on owning income property. There are many options, and qualifying can be easier than you think; especially when you can use existing rental income to qualify.

Posted in Market Updates
Dec. 15, 2022

Airbnb And How It's Changed The Market

 

Airbnb has had a significant impact on the rental market since it was founded in 2008. The online platform, which allows people to rent out their homes or apartments to travelers, has given property owners a new way to earn income from their properties, and it has also given travelers more affordable and flexible lodging options.

One of the main ways that Airbnb has changed the rental market is by increasing the supply of available rental properties. By allowing people to rent out their homes or apartments on a short-term basis, Airbnb has given property owners a new way to monetize their properties and generate additional income. This has particularly been the case in popular tourist destinations, where the demand for rental properties often exceeds the supply.

Another way that Airbnb has changed the rental market is by providing travelers with more affordable and flexible lodging options. Because Airbnb rentals are typically less expensive than traditional hotels, they have made it possible for many travelers to visit places that they otherwise wouldn't be able to afford. Additionally, because Airbnb rentals are often located in residential neighborhoods, they offer travelers a more authentic and immersive experience than traditional hotels.

Finally, Airbnb has also had an impact on the traditional hotel industry. In some cases, the rise of Airbnb has caused hotel occupancy rates to decline, as travelers opt for the lower prices and more authentic experiences offered by Airbnb rentals. This has forced many hotels to adapt and offer more competitive rates and amenities in order to stay competitive.

Overall, Airbnb has had a significant impact on the rental market, and it has changed the way that people think about lodging and property ownership. While there have been some challenges and controversies along the way, the platform has provided many property owners with new opportunities to earn income, and it has also given travelers more affordable and flexible options for their lodging needs.

Have you or do you use Airbnb? We're curious to know your thoughts and what your experience might have been.

 

Posted in Market Updates
Dec. 14, 2022

Home Financing Explained

Let's get super basic on what a mortgage is, and what the differences are in the two main types of financing.

 

A mortgage is a type of loan used to finance the purchase of a property. There are two main types of mortgages: fixed rate mortgages and adjustable rate mortgages.

Fixed rate mortgages have an interest rate that remains constant throughout the life of the loan. This means that the borrower will always know how much they will be required to pay each month, making it easier to budget and plan for the future.

Adjustable rate mortgages, on the other hand, have an interest rate that can change over time. This means that the borrower's monthly payments can increase or decrease depending on the current interest rate. This can make it more difficult for borrowers to budget and plan for the future, as they may not know how much they will be required to pay each month.

One of the key advantages of fixed rate mortgages is the predictability of the monthly payments. This makes it easier for borrowers to budget and plan for the future, as they know exactly how much they will be required to pay each month. In contrast, the unpredictable nature of adjustable rate mortgages can make it more difficult for borrowers to budget and plan for the future.

Another advantage of fixed rate mortgages is that they are generally available at a lower interest rate than adjustable rate mortgages. This can save borrowers money over the life of the loan. However, if interest rates decline over time, borrowers with adjustable rate mortgages may be able to save money by taking advantage of the lower rates.

Overall, the choice between a fixed rate mortgage and an adjustable rate mortgage will depend on the individual circumstances of the borrower. Borrowers who want the predictability of fixed monthly payments may prefer a fixed rate mortgage, while those who are willing to take on the risk of potential changes in monthly payments may prefer an adjustable rate mortgage.

Posted in Market Updates
Dec. 13, 2022

Staging Your Home For A Successful Sale



Staging your home is an important part of the selling process. By properly staging your home, you can make it more appealing to potential buyers and increase the chances of a successful sale. Here are some tips for staging your home:

  • - Declutter and depersonalize: Remove excess clutter and personal items such as family photos, collections, and religious items. This will help potential buyers envision themselves living in the space.
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  • - Clean and repair: Thoroughly clean the entire house and make any necessary repairs. This will create a fresh and inviting space for potential buyers.
  •  
  • - Neutralize: Consider painting the walls in neutral colors and replacing any bold or outdated fixtures or furnishings. This will help potential buyers see the home's potential and not be turned off by colors or styles they don't like.
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  • - Create a welcoming atmosphere: Make sure the house is well-lit and well-ventilated. Add comfortable furnishings, cozy blankets, and pillows to create a welcoming atmosphere.
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  • - Focus on the kitchen and bathrooms: These are two of the most important rooms in the house, so make sure they are clean and in good condition. Update the fixtures and add fresh towels and accessories to make them feel inviting.

By following these tips, you can help your home make a great first impression on potential buyers and increase the chances of a successful sale.

Posted in Market Updates
Dec. 13, 2022

A History Lesson On San Diego

 

The city of San Diego, California was founded in 1769 by Spanish explorers led by Gaspar de Portolà. The explorers, who were part of an expedition to establish a Spanish presence in California, named the city after Saint Didacus, a 15th-century Spanish saint.

The expedition to establish the city of San Diego was part of a broader effort by the Spanish government to establish a series of missions and presidios (military forts) throughout California. The goal of these missions and presidios was to claim the region for Spain and to convert the local Native American population to Christianity.

The first Spanish mission in the San Diego area was Mission San Diego de Alcalá, which was founded in 1769. The mission was established near the site of present-day Old Town San Diego and served as the center of Spanish settlement in the area.

In 1774, a presidio (military fort) was also established in San Diego to protect the mission and the surrounding settlement. The presidio was located near the present-day site of the Cabrillo National Monument, and it was the first permanent European settlement in what is now California.

Throughout the 18th and 19th centuries, the city of San Diego grew slowly but steadily. It remained a small Spanish settlement for much of its early history, but it gradually grew in size and importance as more settlers arrived in the area.

In 1821, Mexico gained independence from Spain and took control of San Diego and the surrounding region. The city continued to grow during this period, and by the mid-19th century, it had become a major port and a hub of trade and commerce.

In 1850, California became a state, and San Diego was incorporated as a city. In the following decades, the city continued to grow and develop, and it became a major tourist destination thanks to its mild climate and beautiful beaches.

Today, San Diego is a vibrant and diverse city with a population of over 1.4 million people. It is known for its beautiful beaches, mild climate, and rich history, and it remains an important cultural and economic hub in Southern California.

Posted in Market Updates
Dec. 13, 2022

What Happened in 2008?

The 2008 Mortgage Crisis. During the late 1990s and early 2000s… | by  Maggie Polk | Medium
I'm still hearing so much negative talk from the news- every day. Often comparing our future market to what happened in 2008. Here's a little bit about what actually happened; read and let me know what your thoughts are..
The 2008 mortgage crisis was a major financial crisis that occurred during the latter part of that year, and it ultimately led to the worst recession in the United States since the Great Depression of the 1930s.

At the heart of the crisis was the widespread use of complex financial instruments known as mortgage-backed securities, which were created by bundling together large numbers of home mortgages and selling them to investors. Many of these securities were given AAA ratings by credit rating agencies, which meant that they were considered to be extremely low-risk investments.

However, as the housing market began to cool and more and more homeowners began to default on their mortgages, the value of these securities began to plummet. This sparked a rapid and dramatic decline in the value of many financial institutions, particularly those that had heavily invested in these securities.

The crisis reached its peak in September 2008, when the investment bank Lehman Brothers filed for bankruptcy. This event sent shockwaves throughout the global financial system, and it led to a severe credit crunch as banks and other financial institutions became increasingly unwilling to lend money to each other.

In response to the crisis, the U.S. government and central bank took a number of measures to stabilize the financial system and prevent a complete collapse of the economy. These included the passage of the Troubled Asset Relief Program (TARP), which provided billions of dollars in funding to struggling financial institutions, and the Federal Reserve's decision to slash interest rates to near-zero levels.

While these measures did help to stabilize the financial system and prevent a total collapse of the economy, the 2008 mortgage crisis had far-reaching consequences. The recession that followed lasted for several years and resulted in millions of people losing their jobs, homes, and savings. Many people also lost confidence in the financial system, and it took years for the economy to fully recover.

Posted in Market Updates
Nov. 23, 2022

Happy Thanksgiving!

 

Happy Thanksgiving to you all! Thank you for visiting our page and we wish you the best with your families and friends. Stay safe and have a blast!

Posted in Local Events
Nov. 11, 2022

San Diego Housing Market Takes A Turn

 

Over the last couple of years, we’ve seen record increases in property values all over San Diego County. Housing inventory has been historically low. However, several months ago we started to see a change. October will be the Sixth consecutive month that homes have had a decline in average sales price. We’re definitely seeing a correction, or market shift.  Call it what you’d like, but over-all, home values are declining, more homes are coming on the market, and they’re taking longer to sell. Interest rates have risen quite a bit, and will likely continue to rise. Less buyers and more homes on the market tell us this “Seller’s Market” is transitioning into a “Buyer’s Market.” I don't think we're quite there yet, but I believe that going into 2023, we'll continue to see the inventory increase, longer "on market" times, price reductions and fewer buyers looking.

   

Such an interesting time to be alive right now. The political climate is like I've never seen, and so many people are influenced by much of this so called "theatre," that it's really affecting decisions to buy or sell a home. Regardless of the statistics, and much of the media blowing the markets out of proportion, we are still working with more buyers and sellers than we were last year at this time. Believe it or not, many people are still out there living their best life, buying and selling homes and minding their own business! We think staying positive, but still being realistic, is a great way to go about your life.

 

If you’ve been contemplating selling your home and making a move, it’s not too late! There are many areas in San Diego County that are retaining value better than others. When marketed and presented correctly, you can still sell for close to peak prices. Thank you so much for visiting us, and please make it a great day!

Posted in Market Updates
June 27, 2021

San Diego Housing Bubble

 

The San Diego Housing Bubble Is Bursting!

 

It is undeniable that the housing market here in San Diego (and all over the country) has been absolutely nuts. The past couple of years have brought pricing increases that most of us have never seen; which brings us to what many are asking... What's next?
So, is this a bubble, and is it going to "burst?" Of course I don't know for sure, but here are four factors that say it won't:
  1. The Economy here in San Diego is just too strong. Despite California's unemployment rate of about 8%, San Diego is sitting at about 6.9%, which is a bit below that.  
  2. Housing prices are actually stabling. We've seen major pricing hikes since 2019, but the experts are projecting pricing to increase by just 1.5% moving into next year. I'm actually noticing this myself, and it looks as if price stabilization is a real possibility.
  3. The housing prices aren't inflated. A housing bubble happens when prices are inflated beyond what the economy can handle. The bubble then bursts to correct the inflated prices.
  4. Lenders aren't approving subprime loans. Unlike the home buying frenzy leading up to the 2008 crash, banks are now much more careful in which loans to approve. We won't be seeing the type of loan defaults due to buyers that couldn't actually afford their homes.
Whatever your opinion is, there are valid points on both sides- but, as always, the market is going to do what it's going to do!
Posted in Market Updates