The winter real estate market tests the resolve of those homeowners brave enough to put a for-sale sign in their front yard. Fewer deals are consummated during the winter months. Homeowners become weary as the weeks drag on without an offer. And when they do, surly home buyers demand steep discounts and seller concessions. Homeowners are often faced with two choices: cut the price or remove the property from the market and wait for better days. And the 2010 Carlsbad winter real estate market is acting accordingly. Average sales prices are down, market-time is up and twice the number of homes will be “withdrawn” from the marketplace.
The average sales price for a 2,500-square-foot, single-family Carlsbad home was $656,000 during September /October. This is down from May/June highs of $680,000. Home buyers are negotiating more off the asking price: 4 percent in the October versus 2 percent in June. And it is taking longer to sell property: 80 days versus 47 in June.
The condo market is facing hardships similar to the single-family home market — even slower than the detached market. The average condo is requires 90-plus days to enter into an agreement with buyers securing 5 percent off the average asking price. With 42 homes selling per month, the average 1,400-square-foot condo sold for $310,800. This is noticeably different from just six months prior when the average sales price was $362,000 for a 1,400-square-foot condo with owners securing 98 percent of their asking price. Mortgage rates hovered around 5 percent, almost 1 percent higher than today's rates. The price reduction of $50,000 with a lower rates makes makes about a $400 difference in monthly payments. It reduces a $2,000 a month payment to $1,600 a month. And with the strong rental market, some condo owners are opting for the refinance and adding “landlord” to their resume.
Refinancing tips in today's market
Bill Gross, Pimco's CEO and bond market oracle, forecasts an elongated period of low rates in his November 2010 investor newsletter. Homeowners with anything above a 5.5 percent mortgage rate and plan to stay in their home longer than a year should explore a mortgage refinance. The problem in today's refinance market is the appraisal. Sales prices are down and some homeowners owe more than the property is worth. The homeowner will need to put money down to secure a new mortgage. Owners that are able to secure a new mortgage at the current 4 percent rates will find their monthly payments dramatically different. Less money to the mortgage leaves more money for gifts, presents and paying off high-interest credit card debt.
Homeowners can save themselves $500 in appraisal fees by securing three to five comparative sales from the last three months. Ask a local, experienced real estate broker for assistance in choosing accurate comparatives. This will give you an idea of what your home is worth. You are then able to subtract what you owe to see if you have the equity to secure a refinance. Take that number to your mortgage broker and let him/her know the expected price. Either way, you can save time, effort and money by planning ahead.
If you have remodeled your home recently make sure your mortgage broker requests an interior appraisal. An updated kitchen, flooring or uniquely large rear yard with improvements can positively affect an appraisal. It is the appraiser's job to be the impartial judge of value for the bank. A drive-by appraisal may not take into account the special features of your home and the value might come in lower than expected. This will hinder your ability to secure a refinance. The interior appraisal will give you the best chance at securing the highest possible value.
The average sales price for a 2,500-square-foot, single-family Carlsbad home was $656,000 during September /October. This is down from May/June highs of $680,000. Home buyers are negotiating more off the asking price: 4 percent in the October versus 2 percent in June. And it is taking longer to sell property: 80 days versus 47 in June.
The condo market is facing hardships similar to the single-family home market — even slower than the detached market. The average condo is requires 90-plus days to enter into an agreement with buyers securing 5 percent off the average asking price. With 42 homes selling per month, the average 1,400-square-foot condo sold for $310,800. This is noticeably different from just six months prior when the average sales price was $362,000 for a 1,400-square-foot condo with owners securing 98 percent of their asking price. Mortgage rates hovered around 5 percent, almost 1 percent higher than today's rates. The price reduction of $50,000 with a lower rates makes makes about a $400 difference in monthly payments. It reduces a $2,000 a month payment to $1,600 a month. And with the strong rental market, some condo owners are opting for the refinance and adding “landlord” to their resume.
Refinancing tips in today's market
Bill Gross, Pimco's CEO and bond market oracle, forecasts an elongated period of low rates in his November 2010 investor newsletter. Homeowners with anything above a 5.5 percent mortgage rate and plan to stay in their home longer than a year should explore a mortgage refinance. The problem in today's refinance market is the appraisal. Sales prices are down and some homeowners owe more than the property is worth. The homeowner will need to put money down to secure a new mortgage. Owners that are able to secure a new mortgage at the current 4 percent rates will find their monthly payments dramatically different. Less money to the mortgage leaves more money for gifts, presents and paying off high-interest credit card debt.
Homeowners can save themselves $500 in appraisal fees by securing three to five comparative sales from the last three months. Ask a local, experienced real estate broker for assistance in choosing accurate comparatives. This will give you an idea of what your home is worth. You are then able to subtract what you owe to see if you have the equity to secure a refinance. Take that number to your mortgage broker and let him/her know the expected price. Either way, you can save time, effort and money by planning ahead.
If you have remodeled your home recently make sure your mortgage broker requests an interior appraisal. An updated kitchen, flooring or uniquely large rear yard with improvements can positively affect an appraisal. It is the appraiser's job to be the impartial judge of value for the bank. A drive-by appraisal may not take into account the special features of your home and the value might come in lower than expected. This will hinder your ability to secure a refinance. The interior appraisal will give you the best chance at securing the highest possible value.