A Different Perspective on Affordability
Happy June! Here’s wishing you a summer that’s filled with lots of sun and fun all around. Read on for real estate news, local activities, and discover lifestyle tips curated just for you.
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Two Year Anniversary
Ashley Anderson and I joined forces back in 2019 and officially became a team at Compass two years ago. As we celebrate our two-year anniversary at Compass, we are reflecting on a time when we committed ourselves to learning all of the tools Compass has to offer to better serve our clients. With the help and support of the team at Compass, we have more efficient processes in place to help buyers, sellers, and investors achieve their real estate goals. Our commitment to provide knowledge, resources, and the highest level of client care was in place from the day we met. Compass helped us amplify this commitment by fine-tuning our systems, introducing new technology, and moving fast to provide even better service to our clients.
San Diego Real Estate
In 1980, a new car cost around $7,200, and a gallon of gas was $1.19. It was $2.25 for a movie ticket, 15 cents for a first-class stamp, 91 cents for a dozen eggs, and $2.16 for a gallon of milk. The median price of a home in San Diego was a mere $94,000!! Wow! It was cheap living back in 1980.
Or, was it...
The increase in San Diego housing prices has been dominating the headlines recently. However, these headlines tell only one part of the story. Does anyone report on how the median income has changed in comparison to these historically high prices? For perspective, the San Diego County median household income in 1980 was $18,000, a drop in the bucket compared to today’s $88,000 level.
And what about interest rates in 1980? The chart below highlights how higher interest rates impact housing affordability.
In 1980, the average mortgage interest rate was 13.75% and the median income was $18,000. That meant that the monthly housing payment for that $94,000 median-priced home was 60% of a homeowner’s income. Flash forward to today’s 3% mortgage rate, $88,000 median income, and a record-setting April median detached sales price of $825,000. The monthly housing payment is 38% of a homeowner’s monthly paycheck.
Considering the full picture was very impactful to me in putting into perspective what is driving demand in today's market. There is not enough emphasis on the importance of looking at the monthly payment of a home and the impact on a family’s budget; instead, way too much weight is placed on where prices stand today.
Source: Steven Thomas - Reports on Housing
Congratulations to our buyers on their accepted offers! We helped locate a brand new home for one, a Spanish home with Craftsman detail in the perfect location for another, and a home that wasn't even on the market for the third, who had been house hunting for months. We are looking forward to handing each of you the keys to your new home!
2 Bed | 2.5 Bath Representing Buyer
3 Bed | 2 Bath Representing Buyer
6244 Caminito del Oeste
University Canyon 3 Bed | 2.5 Bath Representing Buyer
SD County Fair (Home Grown Fun)
June 11th - July 4th
Home Grown Fun, presented by the SD county fair, will offer a taste of your fair favorites–including shopping, food concessionaires, a Ferris wheel and carousel, agricultural-themed exhibits, and much more! Admission tickets and parking passes are limited and must be purchased in advance here.
Nighttime Zoo at the San Diego Zoo
Begins June 11th (All Summer)
Stay after dark and celebrate summer during Nighttime Zoo. Come "rock and roar" every day this summer with live music and other amazing entertainment experiences. There's so much to do, see and hear at Nighttime Zoo - it's a good thing summer hours are longer! To purchase tickets, click here.
2021 U.S. Open Championship
June 14th - June 20th
Don't miss out on one of the best events in San Diego this summer! Grab a few friends and watch the best of the best compete at the beautiful Torrey Pines Golf Course. The last time this event was played here on the South Course was back in 2008. Move fast, as tickets are limited. More details here.
Lifestyle Tips & Tricks
Gardening for a Great Cause
Many people are facing food insecurity due to the economic impacts of the global pandemic. Did you know that many local food banks will take fresh produce donations? If you’re a gardener, consider growing a few extra plants and donating the surplus food - small, pandemic victory gardens can help fight a big problem.
Use the hashtags #CreateFoodSecurity, #TheFoodSecurityProject as you share your growing gardens on social media! If you don’t have a green thumb, support The Food Security Project started by Compass Boulder Agents, Catherine & Andy Burgess.
30 Outdoor Bars That Will Tempt You to Sit and Sip
From pergola-covered and perched on a hill to open-air and oceanside, these outdoor bars are the ultimate destinations for at-home relaxation.
50 Unique Father's Day Gifts for Every Type of Dad
Although your dad may say he doesn't want anything for Father's Day this year, you know that showing up without a present isn't really a possibility. After all, he's the guy you looked up to (quite literally) all these years, and it's only fitting to get him a Father's Day gift that shows just how much you appreciate him and all that he does for your whole family. Courtesy of Good House Keeping