San Diego Will Continue To Boom
An Interview with Jeremy Backlin, REX Agent and San Diego Real Estate Professional for 12 years
By Suzanne Appel, REX Editor
I recently sat down with Jeremy Backlin to understand his perspective on the growth in the San Diego real estate market. Jeremy has been in real estate for 12 years and has seen the county grow over the past 15 years.
Q: How do you think San Diego is going to respond to a real estate startup with a 2-2.5% commission?
A: Well, we do have the limited time offer of 1%*, but yes, 2% might seem too good to be true. San Diego is growing because of technology and bio tech. These professionals are digitally savvy and have the mindset to do things differently. We’re having great conversations with homeowners who are excited to be a part of what we’re doing. They are saying things like, “This the future of real estate.”
Q: Where do you see the growth in San Diego residential real estate and what do you think are the factors creating that?
A: So what’s happening in San Diego is a classic friction between supply and demand. Demand is outpacing supply. If you already own a home, that’s good because people will be willing to pay more. But if you’re looking to buy, it has become even harder to afford a home. The process to apply and get building permits is really slow in San Diego, and we’re seeing pockets where neighbors just want their community to stay the same size and want to prevent further development.
We see hope for buyers in some neighborhoods where there is still reasonable inventory, value, great schools, access to transportation and corporate campuses such as Oceanside, Escondido, San Marcos, and Rancho Bernardo.
Q: It’s easy to get swept up in a bidding war. What’s your perspective on this?
A: The rule of thumb is that people shouldn’t spend more than 30% of their income on housing. In 2016, 53% of middle-class households in California spent more than 30% on housing. This is causing the prices to go up as people are willing to spend more for their home. That’s why we are seeing more bidding wars. If you’re caught in an escalating bidding war, just be sure to run the numbers and confirm you can comfortably make the payments, in good times and in bad.
Q: Who do you think is the ideal client for REX?
A: They are a forward-thinking group who have a general belief that it costs too much to sell their home (especially in a hot market) and they are not getting the value for what they are paying. They’re not alone, real estate commissions are between 1-3% in the United Kingdom, Australia and Belgium. In a nutshell, I think the ideal REX client is anyone who wants to save money while receiving full service throughout the entire process.
(*1% fee or minimum of $9500 for a limited time. 2% after 01/09/2017)