The Lawhead Team would like to share the projects that have the greatest and the least return on investment from the latest One Cool Thing. 

Here’s a look at the projects with the greatest and least return on investment in 2017. Typically, the 29 projects on this year’s report paid back an average of 64.3 CENTS on the dollar in resale value.

Top 5 projects with the GREATEST ROI in the “upscale” cost category:

• 85% – Garage door replacement
• 77.8% – Entry door replacement (fiberglass)
• 73.9% – Window replacement (vinyl)
• 73% – Window replacement (wood)
• 70.1% – Grand entrance (fiberglass)

Top 5 projects with the LOWEST ROI in the “upscale” category:

• 61.9% – Major kitchen remodel
• 59.9% – Master suite addition
• 59.1% – Bathroom remodel
• 57.1% – Bathroom addition
• 56.4% – Deck addition (composite)

Source: Remodeling Magazine, Cost vs. Value Report

The Lawhead Team would like to share the following article on what young adults need to know before buying their first home. 

Reasons Young Adults Can’t Buy Homes Today

Many young adults are sitting on the sidelines of the housing market, and there’s no shortage of theories as to why. Maybe millennials can’t land jobs that will let them move out of their parents’ basements, or maybe they’re too buried in student loan debts to contemplate adding a mortgage to their financial obligations.

But new data shows that one huge factor is the competition — some might say unfair competition — young adults face from investors who can just swoop in, drop a pile of cash and buy the houses they want. These investors then turn around and rent these properties to those same young adults for increasing amounts every year, making it even tougher for young would-be homeowners to ever save up enough money for a down payment.

As of October, a huge number of homes — one in four — that sold were bought by investors paying cash. That’s down some from the peak of a few years ago, when almost one in three houses were snapped up by cash buyers. But it’s still a far cry from the 17% of homes that were bought by investors back in 2000 before the real estate bubble grew and burst, according to the Wall Street Journal.

Investors are most likely to snap up cheap, starter homes — the kinds of houses that millennials are most likely to be looking for and able to afford. “Home supply is diminishing but investor demand is not going away,” Lawrence Yun, chief economist for the National Association of Realtors, told the Journal, which reported that the number of homes on the market below the $100,000 mark fell by about 11% in only a year.

During the height of the foreclosure crisis, investors were buying up foreclosed and short-sale properties at rock-bottom prices with the intention of flipping them and reselling for a profit once the market picked back up. But now, more are hanging onto the homes they buy and renting them out.

It’s a good move for investors who have the cash to spare already, but it’s bad news for the people who want to buy low- and mid-priced homes. Across the country, rental rates are skyrocketing: One prediction said rents could rise by an average of 8% this year, with much higher increases in in-demand markets where young adults are most likely to live and work. And this is on top of increases that have already taken place. “The median asking rent for new market rate apartments hit $1,372 last year, a 26 percent increase from 2012,” a report published in December by Harvard University’s Joint Center for Housing Studies said.  

Source: Time Money

The Lawhead Team would like to share which home improvements have the best pay off.

Home Improvements That Pay Off

Here’s a look at this year’s trends for popular remodeling projects and how this projects retain resale value in the Pacific region of the country for mid-range homes.

• Entry Door Replacement (steel)
  • Job Cost: $1,366
  • Resale Value $1,683
  • Cost Recouped: 123.0%
• Deck Addition (wood)
  • Job Cost: $11,6685
  • Resale Value: $11,828
  • Cost Recouped: 101.2%
• Attic Bedroom
  • Job Cost: $60,675
  • Resale Value: $55,646
  • Cost Recouped: 91.7%
• Bathroom Remodel
  • Job Cost: $19,438
  • Resale Value: $16,681
  • Cost Recouped: 85.8%
• Window Replacement (wood)
  • Job Cost: $12,489
  • Resale Value: $11,911
  • Cost Recouped: 95.4%
• Two-Story Addition
  • Job Cost: $183,801
  • Resale Value: $136,524
  • Cost Recouped: 74.3%
• Garage Door Replacement
  • Job Cost: $1,756
  • Resale Value: $1,929
  • Cost Recouped: 110.0%
• Deck Addition (composite)
  • Job Cost: $17,484
  • Resale Value: $13,995
  • Cost Recouped: 80.0%
• Sunroom Addition
  • Job Cost: $83,694
  • Resale Value: $47,488
  • Cost Recouped: 56.7%
• Bathroom Addition
  • Job Cost: $45,635
  • Resale Value: $33,715
  • Cost Recouped: 73.9%
• Window Replacement (vinyl)
  • Job Cost: $11,465
  • Resale Value: $10,372
  • Cost Recouped: 90.5%

Source: Remodeling “2015 Cost vs. Value Report”

The Lawhead Team would like to share the latest stats from the California Association of Realtors® “HomeDex” Report for North San Diego County:

• The median price for all North County home sales – attached and detached – decreased to $508,250 in October 2014 compared to $513,500 in September 2014.
• Detached homes in North County decreased by 5.83 percent to $565,000 in October 2014 compared to $600,000 in September 2014. Year-over median price for SFD homes in North San Diego County decreased 0.88 percent, compared to $570,000 in October 2013, countering 26-months of year-over median price increases.
• Detached home prices OUTSIDE North County decreased 0.98 percent to $462,500 in October 2014 compared to $467,000 reported in September 2014. Year-over non-North County median price increased 6.32 percent compared to $435,000 in October 2013, continuing 31-months of year-over median price increases.
• Attached home prices in North County increased by three percent to $386,250 in October 2014 compared to $381,100 in September 2014. Year-over SFA North San Diego County median price jumped 22.13 percent, compared to $316,250 in October 2013, continuing 33 straight months of year over price increases.
• Non-North County attached home prices decreased 2.5 percent to $312,000 in October 2014 compared to $320,000 in September 2014. Year-over non-North County SFA median price increased 9.47 percent, compared to 285,000 in October 2013.
• The number of North San Diego SFD listings (active and contingent) decreased 5.25 percent in October 2014 compared to September 2014, and jumped 19.35 percent year-over compared to October 2013.
• The number of sold North San Diego County SFD units increased 8.29 percent in October 2014 compared to September 2014. Year-over sold SFD units decreased 1.18 percent compared to October 2013.
• Median days-on-market for single-family detached homes sold in North County increased to 34 days in October 2014 compared to 27 days in September 2014.
• The HomeDex affordability percentage for all homes in North San Diego County – attached and detached – remained at 32 percent in October 2014.

Here’s the latest for San Diego’s housing in North County. Want to know about the latest increase or decrease in pricing for homes? Continue reading!

• The median price for all North County home sales – attached and detached – decreased to $518,500 in August 2014 compared to $525,000 in July 2014.
• Detached homes in North County decreased 1.24 percent to $595,000 in August 2014 compared to $602,500 in July 2014. Year-over median price for SFD homes in North San Diego County increased 3.48 percent, compared to $575,000 in August 2013, continuing 25months of sustained year-over median price increases.
• Detached home prices OUTSIDE North County decreased 1.92 percent to $460,000 in August 2014 compared to $469,000 reported in July 2014. Year-over non-North County median price increased 5.75 percent compared to $435,000 in August 2013, continuing 29-months of year-over median price increases.
• Attached home prices in North County increased 6.07 percent to $380,000 in August 2014 compared to $358,250 in July 2014. Year-over SFA North San Diego County median price increased 11.76 percent, compared to $340,000 in August 2013, continuing 31 straight months of year over price increases.
• Non-North County attached home prices increased 3.97 percent to $327,500 in August 2014 compared to $315,000 in July 2014. Year-over non-North County SFA median price increased 11.02 percent, compared to 295,000 in August 2013.
• The number of North San Diego SFD listings (active and contingent) increased 6.64 percent in August 2014 compared to July 2014, and jumped 19.96 percent year-over compared to August 2013.
• The number of sold North San Diego County SFD units decreased 0.96 percent in August 2014 compared to July 2014. Year-over sold SFD units fell 16.72 percent compared to August 2013.
• Median days-on-market for single-family detached homes sold in North County increased to 25 days in August 2014 compared to 22 days in July 2014.
• The HomeDex affordability percentage for all homes in North San Diego County – attached and detached – remained at 31 percent in August 2014.

Information is from the California Association of Realtors HomeDex Report.

The Lawhead Team would like to share the latest information from California Association of Realtors® HomeDex Report on San Diego North County’s housing affordability:

Housing Affordability – Single-Family Detached Homes

• The monthly payment – including principal, interest, property taxes, and insurance – for the median-priced SFD home in North San Diego County decreased, to $3,019 in July 2014 (based on a conventional mortgage) from $3,084 in June 2014.
• The monthly payment for the median-priced SFD home in non-North San Diego County decreased, to $2,350 in July 2014 from $2,392 in June 2014.
• The percent of San Diego County households that could afford the median-priced SFD home in North County increased, to 25 percent in July 2014 from 24 percent in June 2014, according to the North San Diego County HomeDex; the affordability percentage in non-North County zip codes increased to 36 percent in July 2014 from 35 percent in June 2014.
• The affordability percentage was 28 percent in North San Diego County in July 2013, and 40 percent in non-North San Diego County.
• The HomeDexTM affordability percentage for all homes in North San Diego County – single-family detached and single-family attached together – increased to 31 percent in July 2014 from 29 percent in June 2014.

Housing Affordability – Single-Family Attached Homes

• The monthly payment – including principal, interest, property taxes, and insurance – for the median-priced SFA home in North County decreased, from $2,008 in June 2014 to $1,795 in July 2014. The monthly payment for the median-priced SFA home in non-North San Diego County zip codes decreased, from $1,602 in June 2014 to $1,578 in July 2014.
• The percent of San Diego County households able to afford the median-priced SFA home in North County increased, to 48 percent in July 2014 from 43 percent in June 2014.
• The SFA home affordability level for non-North San Diego County zip code increased, from 54 percent in June 2014 to 55 percent in July 2014.
• 50 percent of county households were able to afford the median-priced SFA home in North San Diego County in July 2013; 58 percent were able to afford the median-priced SFA home in non-North County zip codes in July 2013.

The Lawhead Team would like to share some key points on homes in North San Diego from the California Association of Realtors HomeDex report.

• The median price for all North County home sales – attached and detached – decreased to $525,000 in July 2014 compared to $535,000 in June 2014.
• Detached homes in North County decreased 1.55 percent to $602,500 in July 2014 compared to $612,000 in June 2014. Year-over median price for SFD homes in North San Diego County increased 6.83 percent, compared to $564,000 in June 2013, continuing 24-months of sustained year-over median price increases.
• Detached homes prices OUTSIDE North County decreased 1.21 percent to $469,000 in July 2014 compared to $474,750 reported in June 2014. Year-over non-North County median price increased 7.82 percent compared to $435,000 in June 2013, continuing 28-months of year-over median price increases.

• Attached home prices in North County dropped 10.10 percent to $382,250 in July 2014 compared to $398,500 in June 2014. Year-over SFA North San Diego County median price increased 1.49 percent, compared to $353,000 in July 2013, the 30th straight month of year over price increases.
• Non-North County attached homes prices decreased 0.94 percent to $315,000 in July 2014 compared to $318,000 in June 2014. Year-over non-North County SFA median price increased 6.78 percent, compared to 295,000 in July 2013.
• The number of North San Diego SFD listings (active and contingent) decreased 3.32 percent in July 2014 compared to June 2014, but jumped 25.43 percent year-over compared to July 2013.
• The number of sold North San Diego County SFD units dropped 10.12 percent in July 2014 compared to June 2014. Year-over sold SFD units fell 21.74 percent compared to July 2013.
• Median days-on-market for single-family detached homes sold in North County increased to 22 days in July 2014 compared to 18 days in June 2014.
• The HomeDex affordability percentage for all homes in North San Diego County – attached and detached – increased to 31 percent in July 2014 compared to 29 percent in June 2014.

Planning a remodeling or home improvement project? Check out California Association of Realtors® latest “One Cool Thing”.

During the past year alone, new homeowners spent $18 billion on home improvement and remodeling projects. From the simple, such as painting or flooring, to large scale projects, such as additions or replacing windows, this group of consumers made the most out of every paint brush, hammer, and two by four.

1 out of 5 new homeowners took on a remodeling project during the past year. These remodeling homeowners are:

• 70% more likely to have done remodeling on their kitchen.
• 68% more likely to have taken on new landscaping.
• 49% more likely to have tackled an addition.
• 43% more likely to have done remodeling on their bathroom.
• 29% more likely to have replaced windows.
• 25% less likely to have not made any home improvements during the past year.

The Lawhead Team’s latest share from the California Association of Realtors HomeDex Report for single family detached homes in San Diego.

• The median price for all homes in North San Diego County – single-family detached and single-family attached – increased from $510,000 in May 2014, to $535,000 in June 2014.
• The median-priced single-family detached (SFD) home in North San Diego County jumped 8.8 percent, to $612,000 in June 2014 (the highest median price since September 2007) from $562,500 in May 2014.
• Year-over median SFD price in North San Diego County increased 8.32 percent, compared to 565,000 in June 2013 – the 23rd consecutive month of year-over median price increases.
• The SFD median price in non-North County Zip Codes increased 3.77 percent, to $474,750 in June 2014 from $457,500 in May 2014.  Year-over non-North County median price increased 10.47 percent, compared to $429,750 in June 2013 — the 27th month of year-over median price increases.
• The median SFD price in San Diego County increased six percent, from $500,000 in May 2014 to $530,000 in June 2014.  Year-over county-level SFD median price increased 9.28 percent, compared to June 2013.
• The number of sold SFD units in North San Diego County increased 2.77 percent from May 2014 to June 2014, but year-over sold SFD units decreased 8.47 from June 2013.
• SFD total sales volume decreased 0.95 percent year-over, compared to June 2013.
• SFD listings (active and contingent) in North San Diego County increased 10.86 percent from May 2014 to June 2014, and increased 34.31 percent year-over compared to June 2013.
• SFD listings (active and contingent) in San Diego County increased 9.97 percent from May 2014 to June 2014, and increased 27.84 percent year-over from June 2013.

The Lawhead Team specializes in Real Estate in the North San Diego area. If you are looking to purchase a home or condominium in San Diego, see what the latest for housing affordability is:

Housing Affordability – Single-Family Detached Homes

• The monthly payment – including principal, interest, property taxes, and insurance – for the median-priced SFD home in North San Diego County increased, from $2,869 in May 2014 (based on a conventional mortgage) to $3,084 in June 2014.
• The monthly payment for the median-priced SFD home in non-North San Diego County increased, from $2,333 in May 2014 to $2,392 in June 2014.
• The percent of San Diego County households that could afford the median-priced SFD home in North County declined, from 27 percent in May 2014 to 24 percent in June 2014, according to the North San Diego County HomeDex; the affordability percentage in non-North County zip codes decreased from 36 percent in May 2014 to 35 percent in June 2014.
• The affordability percentage was 28 percent in North San Diego County, and 41 percent in non-North San Diego County compared to June 2013.
• The HomeDexTM affordability percentage for all homes in North San Diego County – single-family detached and single-family attached together – decreased from 31 percent in May 2014 to 29 percent in June 2014.

Housing Affordability – Single-Family Attached Homes

• The monthly payment – including principal, interest, property taxes, and insurance – for the median-priced SFA home in North County increased, to $2,008 in June 2014 from $1,940 in May 2014.  The monthly payment for the median-priced SFA home in non-North San Diego County zip codes increased, to $1,602 in April 2014 from $1,581 in May 2014.
• The percent of San Diego County households able to afford the median-priced SFA home in North County decreased, from 44 percent in May 2014 to 43 percent in June 2014.
• The SFA home affordability level for non-North San Diego County zip code remained at 54 percent in June 2014.
• 53 percent of county households were able to afford the median-priced SFA home in North San Diego County in June 2013; 60 percent were able to afford the median-priced SFA home in non-North County zip codes in June 2013.