Today on the Southern California Real Estate Report we talk about the skyrocketing home prices. Single family new home builds could costs you 2 million in North County San Diego. The State is mandating a certain number of new housing units be added to the market on an annual basis. San Diego Cities time and time again fall short of that number. Building affordable housing is impacted by construction cost, permitting cost and land cost; those are just a few of the factors that increase the overall cost to build new homes. As our housing market continues to heat up the question is there a market correction in sight. We go talk about this and more on this weeks episode.

Southern California Real Estate Report

New Homes Prices Skyrocket

Today on the Southern California Real Estate Report we talk about Gina Champion-Cain's Ponzi scheme. Gina Champion-Cain was sentenced to serve 15-years in a federal prison for running the scheme for about 7-years. She defrauded over $372 million from more than 490 investors. Investors thought their money was going to make high interest loans to restaurants trying to get California liquor licenses. What their money was really doing was going towards Champion-Cain's other business and her personal lifestyle. 

15-years in prison is the sentence for San Diego business women

Today on the Southern California Real Estate Report we talk about the historic North Park hotel the Lafayette. The hotel sold for $25.8M to CH Projects. The restaurant group is known for Born and Raised, Ironside Fish and Oyster  and Raised By Wolves. This is there first hotel purchase. The new owners wants to honor the historic roots while also updating the hotel to modern standard. They bring a unique ability having created some of the most popular restaurants in San Diego. Over the years, North Park has undergone a transformation and now again is an area known for hip new bars and restaurants.

Lafayette Hotel Sells for $25.8M

Today on the Southern California Real Estate Report San Diego is now in the Red Tier. That means restrictions for restaurants, gyms, movie theaters and museums are easing up. Dinning indoors at restaurants is now allowed at 25% capacity and gyms will be able to operate indoors as well. As San Diego opens up, the question now goes to San Diego's economy. We are hoping to see hotels fill back up and tourism come back in time for summer. Here are the safe reopening tiers: https://www.sandiegocounty.gov/content/sdc/hhsa/programs/phs/community_epidemiology/dc/2019-nCoV/reopening.html  

San Diego Enters the Red Tier

Today on the Southern California Real Estate Report we talk about how Real Estate will be impacted about the new changes to the fault line map. The California Geological Survey has released updated maps showing an expansion of existing fault lines in San Diego. The biggest one being the fault line running from Mission Bay through the Airport, and into Mission and Bankers Hill. The impact to Real Estate is great. Not only are owners now finding out their property is on or near a fault line but they will need to disclose it in future sales. Owners might also need to make improvement to their Real Estate to account for the proximity of their Real Estate to fault lines. Developers may be required to conduct a fault hazard investigation on proposed construction and development projects.

Impact of New Fault Line Map

Today on the Southern California Real Estate Report we talk about the vacation rental market and the new rules regarding short term rentals in Mission Beach. The hope is that the new rules will be a compromise between those to wish to eliminate short term rentals and those who support it. Mission Beach has a long history of short term vacation rentals pre-dating the rise of online platforms like VRBO and Airbnb. New new rules will have a cap on short term rentals in Mission Beach at 30%. Only one license will be allowed per individual. The new rules will take effect July 1, 2022.

The Vacation Rental Dilemma

Today on the Southern California Real Estate Report we talk about the City of San Diego's purchase of two hotels to house homeless. The Hotels are located in Mission Valley and in Kearny Mesa. The City paid over 106 million for the two properties. It appears the City well over paid for the hotels. If fact the City paid the highest per-room cost for any hotel room sold in San Diego. The City paid around $349,000 per door for the Residence Inn Mission Valley, while the next highest sale, the Hotel Palomar paid under $300,000 per door for a much nicer hotel with way more amenities.

Homeless Hotel Housing

Today on the Southern California Real Estate Report we talk about the Amazon new distribution center in Otay Mesa. The space is 3.4 Million square-feet, which is about the size of three or four indoor malls. Amazon paid 29.7 million for the 65-acres site. The project is finishing and will have taken just about a year to complete. The facility will bring about 1,500 jobs to San Diego

Amazon's New Building

Today on the Southern California Real Estate Report we tell you about the City's new plan to pave more than 60 miles of dirt streets and alleys. Some of the areas that will get the most benefit are Barrio Logan and communities near the Mexican border. The new paving project will help areas of San Diego avoid problems with drainage especially during the winter months.  

Paving San Diego Streets

Today on the Southern California Real Estate Report we discuss how California did with issuing permits for housing. We look at the following article for the Daily News. https://www.dailynews.com/2021/01/31/report-card-how-we-graded-every-city-county-in-california-on-meeting-rhna-housing-permit-goals/ It shows how we did on a grade scale per City and County and by income level. We did not get close to fulfilling the need for housing is every level except for the Above Average Income level. Listen in to hear our thoughts on why and how we can improve.

Housing Report Card

Today on the Southern California Real Estate Report we talk a look at the high-end home market. The sale of a $24.7 million dollar home is the third highest ever for San Diego. It is location in La Jolla on the beach. The new home took roughly 8 years to build and is around 6,000 square feet. The sale is higher than Alicia Keys purchase of the iconic Razor House in 2018. That home sold for $20.8 million. The luxury market in San Diego has had a lot of growth in the last few years and some believe its because the market is more affordable than LA of San Francisco

Top Home Sales in San Diego

Today on the Southern California Real Estate Report we talk about some of the policy changes that are happening in the City of San Diego. The City is allowing more housing project under the flight path by updating zoning codes and regulations. Every year the City makes small changes to existing policy to better service the community. Some criticize the City's ability to makes changes because it does not allow for public opinion, however the changes are only intended to fix contradictions or stop unintended consequences. There are 44 policy changes this year. To learn more about the changes tune in.

The City of San Diego Makes Chances that Impact Housing

Today on the Southern California Real Estate Report we talk about how San Diego has one of the lowest number of housing lots available in the U.S. Its not a new story and it should come as no surprise that San Diego has not been keeping up with housing needs. Now a new report from the firm Zonda confirms this by confirming that we are also limited on housing lots. This report looks at single family homes. If single family homes are not being developed it puts a strain on the rest of the market. We are lucky to live in a desirable part of the county, but our topography is limiting and so is the land which the City occupies. There is also the problem with cost, and community opposition to new developments. San Diego has a long way to go to meet housing needs.

Not enough housing lots

A report on what is happening in the Real Estate industry.