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2016 Annual Market Review

DEL MAR PRESENTED BY

Jennifer and Nancy Anderson

Dear

HOMEOWNER

t is a pleasure to share with you our 2016 Annual Recap of the Del Mar residential real estate market. We have also included an overview of recent home buying, selling and economic trends in San Diego which we believe will provide you with additional relevant market insights. In 2016 our team held 224 Open Houses and met a wide variety of buyers active in the marketplace. We noted some purchasing hesitation with buyers in the late Summer and early Fall prior to the election. Following the election we found buyers more motivated to purchase prior to any possible change in interest rates. With our sellers, we primarily found they were moving up in home size or selling vacation/investment properties. This past year, we saw more sellers who accepted contingent offers and they generally received higher sales prices than sellers who accepted non-contingent offers. Del Mar as a luxury residential real estate market continues to play a unique role within San Diego County. Although in some home sales we witnessed longer days on market, it did not necessarily directly correlate to a home being priced too high. As a whole, our Del Mar market attracts more discerning buyers. We have found that a strategic and comprehensive marketing plan is crucial to attract these buyers and that our knowledge and expertise are critical to guiding the escrow process to a successful close. As a mother-daughter team, we are committed to being a resource for Del Mar and surrounding beach communities, with a focus on helping homeowners like yourself feel educated and empowered when it comes to local real estate. We are passionate about our profession and always happy to be a resource! If you are considering buying or selling, or know anyone who is, please contact us! We look forward to the opportunity to assist you with your real estate needs. Your neighbors,

Jennifer & Nancy Anderson

CA BRE # 01204280

All information is deemed reliable but not guaranteed. Data from SANDICOR, Inc. for 1/1/16 through 3/31/16 and 1/1/15 through 3/31/15, and represents properties listed or sold by various brokers. Del Mar sales data represents properties sold between Via De La Valle, Carmel Valley Road, and West of the I5.If your property is currently listed, this is not meant as a solicitation.

SAN DIEGO

Real Estate Update

ccording to a monthly study from the University of San Diego, 2016’s economy in the San Diego area ended with a rise in consumer confidence and building permits, with a continued drop in unemployment. The 0.3 percent boost in economic indicators at the end of November was the biggest since last April. Approved building permits issued in the county were down slightly from the prior year, but up substantially from 2014. In the job market, November’s unemployment rate was down from 2015, according to the Burnham-Moores Center for Real Estate, with that number expected to rise slightly. The U.S. real estate market in 2016 was characterized by record-low levels of supply, strong demand and record-high prices. As we enter 2017, many analysts and economists expect to see moderate growth in the residential real estate over the next 12 months, reflecting projected interest rate hikes as well as a forecasted 2.1 percent economic growth. “After an eventful election, demand for real estate appears to be carrying momentum going into 2017,” said Javier Vivas, manager of economic research for Realtor.com. “We expect that to be put to the test, as mortgage rates sky rocket to new highs. But the economic foundations remain strong and most forecasts expect growth as we enter the new year.” Nela Richardson, chief economist for Redfin, agreed that bullish real estate sales prices are decelerating. “After several years of steady and steep price growth, we are seeing indications that price growth is slowing and the market is normalizing,” said Richardson.

DEL MAR vs SAN DIEGO

Median List Price $3mil $2.5mil

DEL MAR

$2mil $1.5mil $1mil $500k

SAN DIEGO

$0k

4.89%

Projected sales increase for San Diego metro in 2017.

Nationally, home prices have gone up 5.1 percent over the past year but the forecasted gain for 2017 is expected to be closer to 3.9 percent. Many cities in California have experienced tremendous price growth over the last few years. While housing markets across the Golden State are slowing down as demand softens, several California metros rank in the top five in the country for sales and price growth predicted for 2017: Los Angeles/Long Beach/Anaheim at number 2, Sacramento/Roseville/Arden-Arcade ranked at 4, followed by Riverside/San Bernardino/Ontario. San Diego/Carlsbad is holding steady at number 15 with a projected sales increase of 4.89 percent, according to Realtor.com. Housing market forecasts for the new year also indicate that Seattle, Portland and other real estate markets in the Pacific Northwest will continue to outpace the nation in 2017, in terms of home-price appreciation. While home prices have risen steadily, homebuilders have not kept pace with demand. With wages rising and unemployment low, 2017 will be the year builders finally start building in earnest again. Experts are estimating new home sales to increase 10 percent in the coming year. The Mortgage Bankers Association (MBA) expects the average rate for a 30-year home loan to reach 3.7% by the end of 2016, and to continue rising gradually throughout 2017. The general consensus was that mortgage rates would rise gradually throughout 2016, but that did not happen. In fact, the average rate for a 30-year home loan declined since the beginning of the year.

Jan’16 Feb’16 Mar’16 Apr’16 May’16 June’16 July’16 Aug’16 Sept’16 Oct’16 Nov’16 Dec’16

www.AndersonCoastal.com

looking at

DEL MAR 2016 2016 Q1

2016 Q2

HOMES SOLD

SALES VOLUME

$97,680,233

SALES VOLUME

$115,267,225

$2,504,621

$1,987,365

Average Sales Price

$1,380

$882

Average Price Per SQFT

123

105

Average Days On Market

33 67

$338K

2016 Q1 LOWEST SALE 2BD/2BA 804 SQFT

Buying a Home in 2016

Financing: 33% = $32,141,000 Cash: 67% = $65,539,233 Other: 0%

Financing: 48% = $40,857,000 Cash: 52% = $74,410,225 Other: 0%

Detached Homes Sold: 25 Attached Homes Sold : 10 Other Sales: 4

$13MIL

2016 Q1 HIGHEST SALE 2BD/4BA 1,660 SQFT

Home Sales by Type 10

Average Days On Market

Home Sales by Type

12 40

$270K

2016 Q2 LOWEST SALE 1BD/1BA 628 SQFT

Detached Homes Sold: 40 Attached Homes Sold : 12 Other Sales: 6

$10.5MIL 2016 Q2 HIGHEST SALE 4BD/3.5BA 2,885 SQFT

All information is deemed reliable but not guaranteed. Data from SANDICOR, Inc. for 1/1/16 through 3/31/16 and 4/1/16 through 6/30/16, and represents properties listed or sold by various brokers. Days on market is based off Altos Reports to obtain the most accurate accounting, all other information is from SANDICOR, Inc. Del Mar sales data represents properties sold between Via De La Valle, Carmel Valley Road, and West of the I5. If your property is currently listed, this is not meant as a solicitation.

2016 DEL

2016 Q3

2016 Q4

HOMES SOLD

SALES VOLUME

$59,853,767

SALES VOLUME

$111,776,888

$2,661,354

Average Sales Price

$824

$1,044

Average Price Per SQFT

102

124

Average Days On Market

24 71

3 8

2016 Q3 LOWEST SALE 1BD/1BA 628 SQFT

Average Days On Market

Buying a Home in 2016

$288K

MAR

HOMES SOLD

$1,575,099

looking at

Financing: 71% = $41,438,867 Cash: 24% = $15,429,900 Other: 5% $2,985,000

33 62

Home Sales by Type Detached Homes Sold: 27 Attached Homes Sold : 8 Other Sales: 3

$4.52MIL 2016 Q3 HIGHEST SALE 3BD/4.5BA 3,839 SQFT

Buying a Home in 2016

Financing: 62% = $41,521,888 Cash: 33% = $66,115,000 Other: 5% $4,140,000

Home Sales by Type

9 28

Detached Homes Sold: 28 Attached Homes Sold : 9 Other Sales: 5

$331K

$18MIL

2016 Q4 LOWEST SALE

2016 Q4 HIGHEST SALE

1BD/1BA 809 SQFT

5BD/3.5BA 3,500 SQFT

All information is deemed reliable but not guaranteed. Data from SANDICOR, Inc. for 7/1/16 through 9/30/16 and 10/1/16 through 12/31/16, and represents properties listed or sold by various brokers. Days on market is based off Altos Reports to obtain the most accurate accounting, all other information is from SANDICOR, Inc. Del Mar sales data represents properties sold between Via De La Valle, Carmel Valley Road, and West of the I5. If your property is currently listed, this is not meant as a solicitation.

www.AndersonCoastal.com www.AndersonCoastal.com

2137 Via Mar Valle

13371 Barbados Way

2016 Notable

DEL MAR TRANSACTIONS 14241 Recuerdo Drive

14074 Mercado Drive

13754 Mango Drive #232

2016 Anderson Coastal Sales Stats PRICE POINT

55% Under $1.5M 45% Over $1.5M

PRODUCT TYPE

60% Single Family 40% Condo/Attached

132 Ocean View Avenue

SELLERS & BUYERS 75% Sellers 25% Buyers

6 14

2017 Active DEL MAR LISTINGS

1759 Grand Avenue

345 14th Street

860 Crest Road

people are talking about the team at

ANDERSON COASTAL Working with Jennifer, Nancy and Hayden of Anderson Coastal is like spending time with friends who happen to be very experienced and skilled in helping you buy or sell a house. They are a delight to be around – smart, personable, funny, and conscientious. These qualities helped me choose them, because I knew it would be easy to communicate during a long and complex process. They are informed and proactive where others had been pleasant but general. Let’s face it: buying or selling a house (and we’ve done both with Jennifer and team this year) is an unpredictable experience, no matter how much you plan. But our family was able to face each step of the way calmly and with confidence because we had Anderson Coastal on our side. We are grateful to the Anderson team for their help this year, and even more grateful for their genuine care. We recommend them wholeheartedly, and look forward to many years of continuing friendship. — Sam G. & David N.

“personable”

“conscientious” The Anderson Coastal Properties team lives up to its lofty reputation! Not only do they operate at an exceptional level of competence, their prompt service and overall professionalism made the process of selling our home as smooth as possible. Moreover, with 2 young kids and a dog, Jennifer and her team were always happy to accommodate our busy schedules. We can’t recommend them enough! — Anthony and Shelby M.

As first time homebuyers and sellers, we went into this experience not knowing what to expect. Jennifer took us through the process in a very professional and informative manner. She showed patience when explaining the process, communicated clearly with us by letting us know what to expect and anticipate. But, it was Jennifer’s incredible knowledge of the real estate business, contracts, and negotiation that truly impressed us! Jennifer and her team are the best – helpful, knowledgeable, and organized. We could not think of going through this process with anyone other than Jennifer and her team! Thank you!! — Chris and Jane Q.

“informative”

“wonderful”

“couldn’t be happier”

“knowledgeable” We are so thankful we found Jennifer Anderson at Anderson Coastal Properties. She and her team were very professional, and absolutely wonderful to work with! First we met for an initial consultation, and she had us complete preliminary steps before we looked at homes so we would be ready to go. She and her team provided several listings that fit our needs in the area we wanted, and were available to show us places during times that fit our schedule. We found a place we liked the first day and Jennifer immediately created an offer package with a strong presentation to the seller. We were thrilled that they accepted our offer the next day, and also impressed how Jennifer was able to negotiate a deal with the seller that allowed for flooring budget and credit towards closing costs. We even closed a week early! Thank you Jennifer for a job well done! We love our place and couldn’t be happier. — Brit and Eddie C.

www.AndersonCoastal.com

CA BRE # 01204280

AndersonCoastal.com We believe in providing an unparalleled comprehensive residential transaction experience for home buyers and sellers throughout the Del Mar area. We are passionate about our profession – we love using our negotiation skills and marketing expertise to help you succeed. We are grateful for our clients.

• Our Negotiation Strategies • Our Design/Spacial Consultation • Our Strategic Marketing Plan • Our Virtual Staging • Our 3D Virtual Floor Plans and Tours • How We Will Help You Achieve Your Real Estate Goals

CONSIDERING BUYING OR SELLING? We would be thrilled to help!

Jennifer & Nancy Anderson CA BRE# 01885540 | CA BRE# 01963802

858.524.3077

Jennifer@AndersonCoastal.com

Anderson Coastal Properties 1424 Camino Del Mar | Del Mar, CA 92014

If your home is currently listed, this is not a solicitation for that listing.