COLLECTION

A SHOWCASE OF SAN DIEGO’S FINEST PROPERTIES

What Will It Take to Give the San Diego Housing Market a Shot in the Arm?

Ah, the world of a changing marketplace! I’ve always said that my profession is an “occupational hazard.” No matter where I go, I get lots of questions about the future of our residential real estate world. It’s understandable that people want to know, but though I’m a great real estate broker, I’m certainly not a fortune teller.

The media has much to say about our economic status and pontificates profusely about where we are headed. But what I watch closely are our local communities and how we navigate a rapidly changing and frustrating housing market.

We are no longer in a COVID-induced boom market. Rather, we are in a reboot of this past growth. Fueled by political angst, we find ourselves in a seemingly fragile environment that clouds the perception about what the future may bring.

Demand for good houses remains strong. But guess what? Increasingly, owners just want to stay put, so our new listing opportunities are limited in number. Many, many owners are sitting on substantial equity in their personal residence and cannot fathom the prospect of paying nearly 40% in both federal and state tax (after their exclusion of $250,000 as an individual and $500,000 as a married couple) on their gained profits above their original purchase price and added improvements.

Potential sellers refuse to absorb this tax and instead chose to remain in their home until the end. They make repairs, hire weekly cleaning, hire gardeners, add an elevator, pay the property taxes and more. But this is becoming a growing emotional burden to bear.

It’s important to remember that those with substantial equity are likely to have strong additional assets in their estates. So there may be a message here. Rather than choosing to stay put, leaving that captured equity locked in your house value, why not consider the sale of your home? Pay the tax due and enjoy the residual dollars to provide a fun-filled future with the new capital to either buy a smaller home or condominium, rent a luxury apartment and/or travel and enjoy the rest of your life. I would argue that your kids, your charities and more will be just fine.

Now, let’s look at another key element. There is currently a shortage of inventory throughout San Diego County. The simple theory of supply and continued demand should dictate that low inventory pushes prices up. And since people cannot find properties that incite them to move, they are tending to choose not to sell their existing residence. This helps perpetuate the lack of inventory on the market and pushes prices, even with the increased interest cost associated with new loans.

Now to highlight this: San Diego is fortunate to have blossoming medical and technology business growth with a highly educated younger generation in search of good neighborhoods, good schools, great restaurants and more. We are a wonderful city full of opportunity!

The recent nationally broadcast Farmers Open (PGA golf) at Torrey Pines showed the beauty (thanks, blimp photography!) of our coastline and more. People want to be here! Buyers who are here, or those yearning to be, saw that coverage. Now we need potential sellers in our market to seize the opportunity on their side of the equation - to sell their properties and enjoy the equity in their homes in whatever way makes them happiest. This will be like a shot in the arm for the San Diego housing market.

With this in mind, I believe we will see a shift in attitudes from skepticism to confidence by both buyers and sellers. I’m very positive about the future of our market and have a growing belief that tomorrow will dawn an even better landscape for San Diego and its residents. Our seasoned professional agents at Willis Allen Real Estate are certainly ready to answer all your questions and concerns!

Andrew E. Nelson President

luxuriouS oCeanfront

CoronaDo • the ShoreS | $3,850,000

• One-of-a-kind, turnkey corner unit in Cabrillo Tower

• Panoramic views from Point Loma to Mexico

• Floor to ceiling sliding doors in living area

• 2 tandem parking spots

2 BeDroomS | 2 BathS | 1,380 Sq ft

OLGA MINVIELLE STEVENS

DRE# 01105050

619.778.8011

OlgaMinvielle1@gmail.com

Blink and you might miss it: Westerly Public House is located within the Monsaraz Hotel (which, itself, is a trendy location)- the restaurant’s entranceway is directly to the left of the reception desk. The eatery’s decor blends seamlessly with the hotel’s subtle nautical themes and homage to the area’s Portuguese influence, which the location’s designer pieced together with intention.

Corned beef, long renowned as a staple food for sailors long at sea, was on the brunch menu; given that we were steps away from the harbor, we felt obliged to try it. Spread beneath the cover of two perfectly cooked eggs, and interspersed throughout a generous portion of cubed potatoes, the chunks of salted beef were a welcome change from the skillet-crisped mush that one might traditionally find at their local greasy spoon. Trails of coarse-ground mustard could be found along the perimeter of the plate, its flavor a perfect complement to the seasoned potatoes and expertly salted beef.

Other favorites on the menu include their breakfast burrito (ground linguisa and a cilantro crema are the stars here) and their prosciutto + kale omelet (with blistered tomatoes and a deliciously smoky salsa). For patrons bringing along any four-legged friends, there is an outdoor seating area where Westerly’s “puppy breakfast” is served: two scrambled eggs, rice, and bacon. The hotel itself is also famously pet friendly!