There’s a lot going on in the world that can play a hand in the future direction of our real estate market in San Diego. I’ll touch on that in just a bit.
First, though, I’m in need of a bit of help and I hope you don’t fault me for using this space to ask for it.
I might be biased, but this call for help comes with an incredible opportunity for personal success for the right person.
Our local real estate team (Team Sage) is looking for ONE full-time real estate agent to join our ranks. But, not just any real estate agent. We’re specifically looking for a HUNGRY, responsible, and reliable hustler. We have more opportunities to help buyers and sellers than we have people to serve them.
Specific experience is great but it also isn’t necessary. We can teach that. We’re primarily looking for the right culture and attitude fit.
Our team is still in its genesis, meaning this is an opportunity to get in on the ground floor of a big vision with a ton of room for growth in responsibility and income.
If this speaks to you specifically, or if you think you know someone that’s a good fit, I’d be incredibly grateful and honored to talk to you more about it. You can simply reply to this email if this is you. 🥳
And if not, no worries!
Ok, on to the stuff you came for!
This week: just the weekly data and commentary, but there’s a lot of extra meat to chew on this week.
Weekly Snapshot
The number of new listings hitting the market continues to shrink week over week. This is the fourth week in a row.
| September 16-10 | Prev 4 Week Avg. | % Change | September 3-9 | |
|---|---|---|---|---|
| New Listings | 660 | 723 | -8.68% | 689 |
| New Pending Sales | 774 | 807 | -4.03% | 750 |
| New Sales | 646 | 647 | -0.12% | 532 |
| Active Inventory | 3,256 | 3,401 | -4.25% | 3,314 |
| 30 Year Fixed Mortgage | 2.86% | 2.87% | -0.35% | 2.88% |
As a result, the inventory continues to shrink as well. Our team is seeing more multiple offer situations than we were four weeks ago, and I’m hearing from many others in my network that bidding wars are picking up again.
As you probably know by now, Gavin Newsom survived the recall election, and one of the first actions he took after the election was to abolish single-family zoning in California.
A sweeping pronouncement like this has a lot of hurdles to overcome to actually become reality, but it does serve as a springboard to potentially major changes in the future of housing development in California. I’m sure we’ll be following up on this storyline often.
A new potential wrinkle in the global economy is developing in China. The government has been cracking down on big business for months that’s been making waves in the stock markets. A new development related to the potential bankruptcy of the largest real estate development company could make waves for the entire global economy.
Evergrande is on the verge of collapse and fails on $300 billion in debt. Considering the debt bubble in Chinese real estate and the slowing rate of sales and price growth, it could be the first of many.
The biggest risk on the global scale lies at the feet of banks. We’re soon going to find out just how connected our banking system is to the Chinese real estate market.
The immediate and direct result of this is likely to be lower mortgage rates (or at least stagnant) for longer as more money will likely flock to a more stable, supply-restricted US real estate market.
In The News
- If tenants are in such dire straights in California, then why can’t the state disburse the rental assistance money?
- Rates at 2-month high ahead of Fed meeting this coming week.
- Homebuyer sentiment ticks up for the first time since March.
The Week Ahead
The big news to drop this week will be the Wednesday press recap of the Fed meeting that’s happening as I type. A lot of the near-term movement for mortgage rates will depend on the content of this meeting.
This recent shake-up in China may be a big enough concern to cause the Fed to keep up with the status quo of buying a lot of assets. Only time (just a couple of days) will tell.
P.S. Do you know anyone that wants to get smarter about real estate in San Diego? Point them HERE, and then bask in the shower of “THANK YOU!”s that follow 🤩
