Affordability is the challenge in today's real estate market.
Average sales prices for condominium and single family homes are down from their highs in 2005. The demand for housing exists, but buyers are resisting due to their expectations of continued falling prices.
The fear of buying a home and having it decrease in value after the purchase is real and is the main reason buyers are negotiating hard with those selling their home. Real estate negotiations in the current market resemble a standoff where the buyer offers significantly less than the seller's asking price and refuses to increase the bid.
Over the last four months, an average of 75 homes sold per month in Carlsbad. With 525 detached houses for sale, it would take seven months to sell the homes currently available in Carlsbad.
This is a normal amount of inventory that does not point to oversupply of homes. Curiously, Carlsbad home prices have pushed downward this summer.
Homes sold over the last three months are achieving an average of 96 percent of their listed price, a figure that was recently firm at 98 percent. Since April, the average 2,700-square-foot home listed at $815,000 sells for $779,900. The average market time for a detached home is 67 days.
Mortgage rates
Affordability is the key to the current market. Although lenders now require a minimum 15 percent down payment to qualify for conventional financing, buyers are turning to Federal Housing Administration financing.
An FHA loan only requires a 3 percent down payment and the homebuyer can borrow up to $697,500. FHA loans are backed by the government and carry excellent mortgage rates.
In general, mortgage rates have been volatile through July and changed as much as 0.25 percent. Thirty-year fixed rate loans have increased from 5.8 percent in April to their current levels of 6.4 percent.
Fluctuations in mortgage rates are expected to continue as the turmoil in the credit markets stabilize. Buyers are advised to not make purchasing decisions based on small fluctuations in mortgage rates or from the fear that interest rates may rise and affordability will be lost.
Affordability is the key to the current market. If rates rise, prices should fall to compensate for lack of affordability.
Detached homes report, 92010
Calavera Hills and surrounding homes make up a large portion of this Carlsbad zip code. There are 30 single family homes for sale with an average price of $589,000 for a three bedroom, 1,994-square-foot home.
The average market time is 48 days, which is much lower than most areas of the city. Buyers have been drawn to the hills of 92010 as affordability and conservatism drives the current buyers market.
The most expensive homes in the area are in the mid $800,000's, an average price for other areas of the city. Calavera Hills is home to top ranked schools with high Academic Performance Index scores and glowing reviews from parents.
Many of the homes are in walking distance to schools and the highly regarded Calavera Hills park, which is one of the locations of the Jazz In The Park concert series. The area also features miles of some of the best walking trails in the city.
92011
Home to the prestigious communities of Aviara, The Bay Collection and Water's End, coastal south Carlsbad currently has 141 single family homes for sale with an average list price of $999,000 for a 2,800-square-foot home. Since April, the average property sold in the 92011 was listed at $860,000, but sold for $816,000; 95 percent of the listed price.
With other areas of the city achieving more than 97 percent of the asking price, homeowners in 92011 have recently been selling for less than expected. This is the result of an oversupply of available luxury homes for sale and higher interest rates for jumbo financing.
92009
The La Costa area of Carlsbad has the widest range of housing choices in the city. The area offers new construction, condos, golf course homes and etc.
There are currently 223 single family homes for sale in 92009 with an average price of $960,000. Since April, the 80 homes sold in La Costa were listed, on average, for $860,000, sold for $824,000 and took 64 days to sell.
Average sales prices for condominium and single family homes are down from their highs in 2005. The demand for housing exists, but buyers are resisting due to their expectations of continued falling prices.
The fear of buying a home and having it decrease in value after the purchase is real and is the main reason buyers are negotiating hard with those selling their home. Real estate negotiations in the current market resemble a standoff where the buyer offers significantly less than the seller's asking price and refuses to increase the bid.
Over the last four months, an average of 75 homes sold per month in Carlsbad. With 525 detached houses for sale, it would take seven months to sell the homes currently available in Carlsbad.
This is a normal amount of inventory that does not point to oversupply of homes. Curiously, Carlsbad home prices have pushed downward this summer.
Homes sold over the last three months are achieving an average of 96 percent of their listed price, a figure that was recently firm at 98 percent. Since April, the average 2,700-square-foot home listed at $815,000 sells for $779,900. The average market time for a detached home is 67 days.
Mortgage rates
Affordability is the key to the current market. Although lenders now require a minimum 15 percent down payment to qualify for conventional financing, buyers are turning to Federal Housing Administration financing.
An FHA loan only requires a 3 percent down payment and the homebuyer can borrow up to $697,500. FHA loans are backed by the government and carry excellent mortgage rates.
In general, mortgage rates have been volatile through July and changed as much as 0.25 percent. Thirty-year fixed rate loans have increased from 5.8 percent in April to their current levels of 6.4 percent.
Fluctuations in mortgage rates are expected to continue as the turmoil in the credit markets stabilize. Buyers are advised to not make purchasing decisions based on small fluctuations in mortgage rates or from the fear that interest rates may rise and affordability will be lost.
Affordability is the key to the current market. If rates rise, prices should fall to compensate for lack of affordability.
Detached homes report, 92010
Calavera Hills and surrounding homes make up a large portion of this Carlsbad zip code. There are 30 single family homes for sale with an average price of $589,000 for a three bedroom, 1,994-square-foot home.
The average market time is 48 days, which is much lower than most areas of the city. Buyers have been drawn to the hills of 92010 as affordability and conservatism drives the current buyers market.
The most expensive homes in the area are in the mid $800,000's, an average price for other areas of the city. Calavera Hills is home to top ranked schools with high Academic Performance Index scores and glowing reviews from parents.
Many of the homes are in walking distance to schools and the highly regarded Calavera Hills park, which is one of the locations of the Jazz In The Park concert series. The area also features miles of some of the best walking trails in the city.
92011
Home to the prestigious communities of Aviara, The Bay Collection and Water's End, coastal south Carlsbad currently has 141 single family homes for sale with an average list price of $999,000 for a 2,800-square-foot home. Since April, the average property sold in the 92011 was listed at $860,000, but sold for $816,000; 95 percent of the listed price.
With other areas of the city achieving more than 97 percent of the asking price, homeowners in 92011 have recently been selling for less than expected. This is the result of an oversupply of available luxury homes for sale and higher interest rates for jumbo financing.
92009
The La Costa area of Carlsbad has the widest range of housing choices in the city. The area offers new construction, condos, golf course homes and etc.
There are currently 223 single family homes for sale in 92009 with an average price of $960,000. Since April, the 80 homes sold in La Costa were listed, on average, for $860,000, sold for $824,000 and took 64 days to sell.