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I
04 / 08 / 2022
BLOOMING
April is filled with the wonders of life, new beginnings, and is when the explosive colors of nature’s incredible palette come to life. It’s also a time of reflection and am I the only one thinking “what just happened?” The last 24 months are a blur and even in the high times of selling real estate during 2005 I never saw the frenzy I am seeing now in the real estate scene. I painfully lived through the Great Recession, as most of you did as well, when the housing market went from boom to bust seemingly overnight. At the end of 2018 interest rates crept up about 1% and the real estate market almost came to a complete halt. So, what gives? Here are my thoughts for the day... The investment buyer is still out there and very potent, rental returns have risen dramatically, and the combination of solid returns and a hedge against inflation is enticing.
II
03 / 18 / 2022
LET THERE BE LIGHT
I hope everyone had a wonderful St. Patrick’s Day yesterday while enjoying our longer sun-filled San Diego nights! It was a big week with the Federal Reserve officials voting on Wednesday to lift interest rates and penciled in six more increases by year’s end, the most aggressive pace in more than 15 years, in an escalating effort to slow inflation that is running at its highest levels in four decades. New projections show officials expect to raise rates at a much faster pace than they projected in December when most penciled in three, quarter-percentage-point, rate increases for this year. (WSJ)
III
01 / 28 / 2022
LUX-FLATION
We are definitely experiencing elevated inflationary times that affect everything from the cost of our local Roberto’s burrito to our LVMH purchases, and more specifically for today’s blog, the real estate prices here in San Diego county. When the supply is limited in comparison to the demand, prices soar. Inflation on everything from the essentials to the luxuries is extreme and the Luxe-Flation we are seeing goes well beyond rising costs as the audience who buys in this sector has grown and is wealthier than ever. Where there is demand, there is an opportunity, and free markets allow for price increases based on what the customer is willing to pay. There will always be moments of price dips in real estate, however, over the long term, I see luxury home pricing continuing its upward trajectory.
