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evolusdv2.
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August 26, 2020 at 2:16 PM #819403August 26, 2020 at 3:47 PM #819411
sdrealtor
ParticipantAgree. I think its mispriced and even though it will get bid up it wont reach the level it could have sold for. But it will sell quickly, thats for certain!
August 28, 2020 at 11:00 AM #819432evolusd
Participant[quote=sdrealtor]Agree. I think its mispriced and even though it will get bid up it wont reach the level it could have sold for. But it will sell quickly, thats for certain![/quote]
Pending already!
August 28, 2020 at 4:46 PM #819433ParticipantOf course. I thought it was listed at least 10% too low, maybe 20%. ADU’s are so new and there is no data on the market to value them. IMO Id want to shoot high and test the market. They started low and let the market dictate. Not saying thats the wrong approach just that Id come at it differently. Over time it will get figured out one way or the other.
August 28, 2020 at 7:15 PM #819435Anonymous
GuestIt seems as though ADUs are helping properties West of I-5 in Cardiff and Encinitas sell faster and at higher prices.
August 30, 2020 at 9:38 AM #819441ParticipantI dont know about that as I havent seen any good examples. Can you provide examples? Also everything is selling fast and for high prices so I would not necessarily attribute it to that. This is how I would look at it.
A 1BR condo in this area (not west of 5) starts around $350K and comes with high HOA fees plus RE taxes. Rents for a 1BR start around $1700. It costs at least $150K and likely more to build a decent one. Purely as an investment property I cant see how one wouldnt add at least $150-$200K or more to the value of a property until proven otherwise. While it is till a hypothesis I think its a very strong one. Id certainly want to test that valuation if I was a seller in this market
FWIW I have a client that built a beautiful 2/2 ADU west of the 5. Because it got classified as an ADU he cant do rentals less than 30 days. He does monthly rental fully furnished. His annual rental income would drop your jaw on the ground.
August 31, 2020 at 2:55 PM #819453gzz
Participant“Because it got classified as an ADU he cant do rentals less than 30 days.”
Most of the “Let’s regulate AirBNB” proposals in San Diego treat ADUs better than condos in terms of short term rental regulation.
What people seem to really hate are the big AirBNB companies that rent out dozens of places or convert apartment complexes to AirBNBs.
An ADU has the owner right on site and able to police noise issues etc.
Anyone know of the new creature called a “Junior ADU” actually existing somewhere?
“Junior Accessory Dwelling Units Law In California
The State of California recently adopted legislation (SB 13, AB 68 and AB 881) that defines the standards local jurisdictions can apply to Accessory Dwelling Units (ADU) and Junior Accessory Dwelling Unit (JADU). This legislation is contained in the California State Government Code Section 65852.2. Read more
Junior Accessory Dwelling Unit (JADU) General ProvisionsA. There is a limit of one JADU per lot zoned for single-family residences. The JADU shall be constructed within walls of a proposed or existing single-family residence.
b. Maximum size is 500 square feet, however, an additional 150 square foot expansion beyond the physical dimensions of the existing structure is permitted strictly to accommodate ingress and egress to JADU.
c. The JADU shall include a separate entrance from the main entrance to the proposed or existing single-family residence.
d. The JADU shall include an efficiency kitchen, which includes:
i. Cooking facility with appliances (240-volt service outlets now permitted)
ii. Food preparation counter and storage cabinets that are of reasonable size in relation to the size of the JADU
iii. No restriction on maximum waste line diameter
e. A deed restriction is required and must include the following stipulations:
i. Prohibition on the sale of the JADU separate from the sale of the single-family residence.
ii. Restriction on the size and attributes of the JADU.
iii. If a JADU is rented, the unit shall not be rented for a period of less than 30 consecutive calendar days
iv. Owner occupancy of one of the units on-site is required* *Owner-occupancy is not required if the owner is another governmental agency, land trust, or housing organization.
f. The JADU may share sanitation facilities (i.e. bathroom/shower) with a primary residence.
“August 31, 2020 at 2:58 PM #819454ParticipantI see now, the anti-AirBNB 30-day minimum rental provision is if you want to use the state law to “force” the right to build an ADU within a single family zone that doesn’t allow them.
August 31, 2020 at 5:54 PM #819455ParticipantThe ADU is in Encinitas. They didnt have to use the regulations they got trapped by them not getting the benefit of waivers on permits and impact fees when they permitted prior to those but it didnt get finished until the new rules went into force. They got the worst of both ends. Since it is classified as an “ADU” which is meant to help Encinitas address a big affordable housing issue it has to be rented out at least 30 days. He’s booked through next Summer already. People have been staying a few months, extending and requesting to come back annually. Its a beautiful unit. Income approximates long term rental rates on a $2M house. Long term they will move into the unit and rent the main house which is not subject to restrictions on rental period.
Ive been walking 5 to 10 miles a day through neighborhoods nearby. I see several JADU’s under construction in garages.
September 2, 2020 at 10:05 AM #819484ParticipantTime for this weeks broken record report
New listings 25 and uptick from last week but still below average.
New Pendings of 38 so the buyers still beating the bushes out there! That took inventory down another notcth with pendings 13 higher than new lisitngs.
Thats 3 solid of months of declining inventory. I took a quick look at the actives. A traditional SFR (not a detached condo, zero lot line or PUD) now starts around $1M. Under that is gonna be something funky, a fixer or in an impaired location.
Closed sales at 38 highest all year.
Back down with 12 price reductions.
Total houses for sale down to 92 with a median around $1.5 in the active inventory. Pendings held up this week but gotta start falling soon with so little inventory
September 9, 2020 at 12:59 PM #819588ParticipantSorry for the late update. I got in a bit of a banger and totaled my car on Friday. Walked away but it threw me for a loop.
New listings 31 another uptick from last week and closer to average for this time of year.
New Pendings of 37 so the buyers sare still very active. Its hard to see how they are still finding things to buy as the pendings were 6 higher than new listings.
Closed sales at 29 so a step down but typical for early in the month. Buyers push to close before month ends to minimize prepaid interest at closings.
Back down with 9 price reductions.
Total houses for sale down to 87 with a median around $1.77 in the active inventory. The low end barely exists at the moment for detached homes up here
September 10, 2020 at 9:13 AM #819602ParticipantThx for the update, sdr. Sorry to hear about the crash! On the bright side, new car!
September 10, 2020 at 11:07 AM #819606ParticipantMy pleasure and thx. Car (Tesla Model 3) wasnt that old and Id get another just like it. May have saved my life and the driver that pulled out in front of me
September 12, 2020 at 10:50 AM #819626profhoff
ParticipantWondering how all this activity will impact west of 5/east of 5 values.
I’m wondering what all you real estate experts think about what will happen to east of 5 property values?
West of 5 is skyrocketing – I mean there are properties on Eolus in the high two – three millions!
Del Mar Heights is solidly at $3m+ for the fancy flips.
Cardiff homes near the composer district are flying off the shelf in mid-two millions.
Will this *permanently* influence values east of 5, or is east of 5 a bubble waiting to pop?
New construction off Urania near Leucadia Blvd and east of 5 is almost mid-2s. Shea just listed the model off Leucadia Blvd just north of Urania for $2.
Even Caudor, Sparta area is getting pretty pricey.
For as long as I can remember (decades and decades), west of 5 is like a meditation mantra for North County Coastal real estate.
Will the current real estate situation change that?
September 12, 2020 at 12:23 PM #819627Escoguy
ParticipantAlso glad you are safe, my wife has VIN 3333 on her 3.
Perhaps consider a Y.Also appreciate the added commentary.
You are right, buyers are coming in hot out there. After we contracted in 92127 4S, two came on the market and were both gone in days, one 30K above list and another listed (same floor plan as ours) at 23K higher and probably went for 10-15K above list.
Can’t always predict when that will happen. The real number of days on the market was like 3 as it just took time to sort the bids.
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