Happy Friday, friends! We get asked a lot about our take on the housing market, not just from clients but friends, family and anyone who can get our ear. But lately we’re getting a lot of questions about the market “slowing down” and while interest rates are rising, causing things to feel less frenzied than it was a year ago, I wanted to address a few things. The San Diego housing market is one that doesn’t experience the economic swings that the rest of the country does, mostly because it is one of the most desirable places to live in the US; which creates seemingly un-ending demand. Many home owners and new buyers in the last two years bought or refinanced at record-low interest rates, so they won’t want to sell and then buy at a higher interest rate for many years, likely. This creates a shortage of supply, which makes me think the SD housing market is probably going to stay hot to warm—at the very least. Just this past week we got accepted offers on two VERY competitive homes, and both of our buyers were thrilled because they had been losing so many offers in the last month. With all that said, no one has a crystal ball for this kind of thing but it remains a seller’s market, until it’s not…
Nearly every day, Compass’s Leonard Steinberg puts together a handful of real estate news bits that are always so interesting I have to share some of my favorites of the week. To receive these every day from Leonard, please click [_here](mailto:ls@compass.com “”) and include your full name and email address to get on his mailing list.
* The average span between permitting and breaking ground on new construction DOUBLED from 1.4 months in 2014 to 2.8 months in 2022. Starts to completion rose from under a year to 17 months….up over 40%!
* Typically, a long-haul truck idles about 1,800 hours per year, using about 1,500 gallons of diesel. Vehicles idling combine to waste nearly 6 billion gallons of fuel per year, and cost owners more than $20 billion. Introducing waste-reducing efficiencies often leads to huge savings. Smart thermostats can reduce energy bills by up to 23%. Often instant solutions to alleviate our problems exist already within close reach.
* The MINI-VILLAGE? Culdesac is a real estate developer and property manager building neighborhoods that embrace community, open space, and mobility. The mix of residential units at a variety of price points integrated with local retail, commercial uses, and open space for nature and public plazas prioritize biking, walking, and transit over cars and parking, partnering with leading mobility companies to deliver convenient and affordable transportation services. This creates a vibrant urban lifestyle without the need for a private vehicle.
* The lag effect of sharply raised interest rates is hitting: Corporate bankruptcies are increasing at double-digit rates in most advanced economies as borrowing costs rise and governments unwind pandemic-era measures to support business worth trillions of dollars. Following a decade of decline the number of US corporate bankruptcies rose 30% in the 12 months to September compared with the year-ago period. In 2019 pre-covid there were 22,910 business bankruptcies in the US. This dropped to 13,125 in 2022. This year it’s over 17,000. (FT)
* Completing a house took an average of 8.3 months in 2022, a month longer than it took to build a house of the same size back in 1971. (NY TIMES)
* Yesterday’s East Coast storm started out by battering Florida and the Carolinas with strong winds and torrential rain over the weekend with Charleston breaking a daily record Sunday with 3.86 inches of rainfall and Gainesville, Florida, recording more than 7 inches! (CNBC)