Market Update | Granny Flat Restrictions Eased

posted on October 21st, 2016 | filed under: Buying Strategies, Market Update, NoCo SD Market Conditions, Uncategorized

trends-at-a-glance-oct-2016Granny Flat Restrictions Eased

Lawmakers in Sacramento have reduced the regulations on adding “granny flats”.

Granny flats, so-called because they were originally intended to house elderly parents, were beset by many local regulations that increased their cost.

The new legislation, which goes into effect in January, reduces and/or eliminates many of the restrictions put in place by local governments.

The intent of the law is to add more units to the housing stock.

The legislation says that as long as the granny flat meets current zoning guidelines, the homeowners can avoid having to get a conditional use permit.

Local agencies would be blocked from charging connection fees for the granny flats for water and sewer service. Other requirements, such as adding fire sprinklers for small accessory dwelling units even if the primary residence doesn’t need them, are eliminated under the legislation.

Anthony Andaya, president of the Pacific Southwest Association of Realtors, said granny flats allow for extra rent cash to offset the rising price of homes.

“This allows homeowners to get a little more income out of their properties, which is nice for owners to counteract some of their larger costs right now,” he said.

Lack of inventory and new home building has contributed to the recent run-up in home prices.

This is a step in the right direction, but as Steve Russell, executive director of the San Diego Housing Federations said, “It’s a modest step. Anything that contributes to housing supply is part of the solution … it’s a big drop in the bucket but it’s still just a drop in the bucket.”

SEPTEMBER SALES STATISTICS

SINGLE-FAMILY HOMES

Year-Over-Year

• Median home prices increased by 6.8% year-over-year to $550,000 from $515,000.

• The average home sales price rose by 6.8% year-over-year to $706,866 from $661,972.

• Home sales rose by 5.2% year-over-year to 2,114 from 2,009.

• Total inventory_ fell 0.4% year-over-year to 8,693 from 8,729.

• Sales price vs. list price ratio rose by 0.1% year-over-year to 98.1% from 98.0%.

• The average days on market fell by 6.5% year-over-year to 39 from 42.

Month-Over-Month

• Median home prices slipped by 0.0% to $550,000 from $550,000.

• The average home sales price rose by 2.5% to $706,866 from $689,770.

• Home sales down by 10.2% to 2,114 from 2,353.

• Total inventory_ dropped 2.3% to 8,693 from 8,899.

• Sales price vs. list price ratio dropped by 0.1% to

98.1% from 98.1%.

• The average days on market increased by 8.4% to 39 from 36.

CONDOMINIUMS

Year-Over-Year

• Median condo prices increased by 10.6% year-over-year to $386,000 from $349,000.

• The average condo sales price rose by 9.6% year-over-year to $460,854 from $420,552.

• Condo sales fell by 0.2% year-over-year to 904 from 906.

• Total inventory_ fell 10.6% year-over-year to 2,725 from 3,048.

• Sales price vs. list price ratio rose by 0.1% year-over-year to 98.2% from 98.2%.

• The average days on market fell by 14.4% year-over-year to 35 from 40.

Month-Over-Month

• Median condo prices slipped by 0.4% to $386,000 from $387,500.

• The average condo sales price rose by 1.5% to $460,854 from $454,206.

• Condo sales down by 10.4% to 904 from 1,009.

• Total inventory_ dropped 4.5% to 2,725 from 2,853.

• Sales price vs. list price ratio dropped by 0.2% to 98.2% from 98.5%.

• The average days on market increased by 13.0% to 35 from 31.

Total inventory is active listings plus contingent or pending listings. Active listings do not include contingent listings.

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posted by Jeff DeChamplain

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Jeff DeChamplain