Januray 9th, 2025

Happy Thursday

My heart goes out to those affected by the ongoing wildfires in Los Angeles. With San Diego's close ties to LA -- many of us have family, friends, and colleagues there. My thoughts & prayers are with those facing these challenges.

The California home insurance crisis has drawn significant attention lately. Questions I've heard, and quite frankly, wonder myself:

How will insurance companies respond to these fires?

What will the rebuild efforts look like once the fires are contained?

While these uncertainties persist, here’s what we currently know about the insurance situation:

• Increasing wildfire risks - California has experienced more frequent and severe wildfires, leading to billions in insurance claims. The past 5 years of wildfire seasons have resulted in over $100 billion in insured losses.
• Strict state regulations - California’s insurance regulations limit companies’ ability to raise rates to match increasing risks. Insurance companies must go through a lengthy approval process with the state insurance commissioner to increase premiums.
• Rising construction costs - The cost of rebuilding homes has increased significantly due to inflation and supply chain issues, making claims more expensive for insurers.
• Reinsurance costs - The companies that insure insurance companies have raised their rates significantly due to increased natural disaster risks, making it more expensive for insurers to operate.

Tragically, the fires have deeply impacted many in our Compass community, with some losing their homes and others facing significant challenges. To help, we are raising funds through Compass Cares to provide assistance and relief to those affected. If you’re able to, please click here to donate and consider sharing this fundraiser with those looking to help.

Here are 3 properties, 2 RE news updates, and 1 thought from me + a market snapshot.

The holidays severly skewed week over week data here. As expected, new listings, pendings & sales are way up. We should continune to see activity pick up over the next few weeks here.

Median Prices This Week

3 Properties to check out

16837 El Zorro Vista Rancho Santa Fe, CA 92067 $6,495,000 Believe it or not, a dirt lot is being offered over $6m. It's only worth what a buyer is willing to pay... with plans ready to go, I had to drive by myself to make sure there really wasn't a house there! Wild. View property

1174 Pacifica Pl Encinitas, CA 92024 $1,599,000 A detached, 4 bed, updated home in Encinitas under 1.75m. Not so common to see these days. You don't get much of a yard here, but location, location, location. View property

931 Stratford Ct Del Mar, CA 92014 $9,995,000 Talk about inspiration. There are only a handful of new builds taking place in Del Mar at any given time. They went modern contemporary on this one. What do you think!? View property

At the end of 2024 we mentioned all of the listings that were expiring. We're already starting to see them come back to the market... we'll see if this continues.

2 News Articles

• ​Palisades Fire torches 1,000 structures, most destructive in Los Angeles history​

So sad. Praying for these people.

• ​Housing Market Predictions for 2025: What's Next for Buyers and Sellers​

"2025 should prove to be another breather year for prospective buyers with slower home value growth and mortgage rates that stay below some of the peaks we saw in 2024."

San Diego's home values rose 4.8% over the past year (per Zillows home value index. Per usual, the gov stats are delayed & haven't been released yet)

1 Tip or Thought

In 2021, California passed new home fire hardening and defensible space laws for real estate transactions in California. Every home we sell is closely inspected to determine if it's in a high fire zone. Sellers of properties in high or very high fire hazard severity zones (Most of North county & RSF) must provide documentation showing compliance with defensible space laws before closing escrow or enter into an agreement allowing the buyer to obtain this within one year post-escrow.

For New Construction: New buildings must use fire-resistant materials as per state building codes

For Existing Homes: homes built before 2010 in high or very high fire hazard zones, sellers need to disclose features that might make the home vulnerable to wildfires

Home fire hardening inspections are part of the due diligence in real estate transactions, focusing on aspects like roofing, windows, and other materials prone to ember attack.

Stay safe, and as always, let me know if you have any specific questions.

Josh Meltzer DRE 02098859 REALTOR® M: 858.585.0309​ ​Josh@Talechia.com​

Check out the January Calendar of events here.​

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DISCLAIMER: Due to recent changes by California Association of Realtors, and the SDMLS Clear Cooperation Policy (the “Policy”), Brokers are limited in their ability to share off-market properties. It is the intent of this letter to be in compliance with the Policy. For this reason, Talechia & Associates can only share such property information with clients of Talechia & Associates. If you would like more information on our properties that are not publicized in the MLS, and becoming a client of Compass, please contact Josh (858) 585-0309 or Talechia (858) 229-2181

Compass is a real estate broker licensed by the State of California and abides by Equal Housing Opportunity laws. License Number 01991628, 01527235, 01527365. All material presented herein is intended for informational purposes only and is compiled from sources deemed reliable but has not been verified. Changes in price, condition, sale or withdrawal may be made without notice. No statement is made as to the accuracy of any description. All measurements and square footage are approximate. If your property is currently listed for sale this is not a solicitation.