The last few months of the year are notoriously difficult for sellers of real estate. This year is no exception.
Today, the average home will sell between 60 and 90 days. Homeowners can beat the average by understanding the local market. Knowing your competition is the key to selling in a slower market.
Buyers tip-toe
The average Carlsbad buyer is cautious when purchasing a home. By utilizing the many tools available to them (agents, online Web sites and etc.), the homebuyer carefully sifts through hundreds of homes. The buyer will then analyze recent neighborhood sales, visit the community homeowner's association Web site and even research the distance to local shopping. Only after a property meets their criteria will the serious buyer schedule a time to see it. A seller in today's market must look at all of these different factors when setting the price of their home. If the property has been for sale for more than 30 days or has had 10 to 12 qualified buyers through it with no offers, the homeowner needs to re-evaluate the situation. Since 2006, Carlsbad real estate has been slowly re-pricing itself as buyers determine what they are willing to pay for a home. Also, financial giants such as Wells Fargo and Countrywide are eager to get rid of homes that have been taken back via foreclosure. In select neighborhoods, these foreclosures are setting new market prices. Understanding the market will help the homeowner effectively counter low offers without offending skittish buyers and potentially blowing the deal.
Buying-up in a declining market
Serious homebuyers must consider this an opportune time to move-up within Carlsbad. In order to combat the slower selling market, homeowners are making price reductions. Although some homeowners are going through the rear-window thinking “I could have sold for more,” smart movers realize that although you are selling for less money, you will be buying for less. The higher-priced homes often are discounted more than their lower-priced compatriots. A $20,000 price-reduction attracts attention when the property is worth $500,000. But for an $800,000 home, a $20,000 reduction doesn't have the same effect. Homeowners must make more dramatic reductions to make an impact. The move-up buyer may have to discount $20,000 to get their property sold, but will buy $65,000 better on the move-up.
Carlsbad's competitive market
Luxury homes is currently the most competitive market in Carlsbad. There are more than 150 homes currently selling in Carlsbad for $1.2 million and above. Homes in this price range are, on average, more than 4,000 square feet and located within a desirable community that hosts an array of amenities like a resident-only clubhouse, walking trails and top-ranking schools. Only about 10 homes in this price range have been selling per month, leaving more than 15 months of inventory; a high number that points to over-supply. Seventy of the more than 150 actively marketed homes were built after 2004, which means owners are trying to resell these recently constructed homes. Those who own luxury homes must be aware of the current competition and analyze their situation carefully.
Market summary
Selling in the current market should take between 60 and 90 days. Accurately pricing a home will shorten this time period to 30 days. Sellers should expect low offers on their home and be prepared to counter effectively without offending skittish buyers. Sellers who battle over small differences in price will end up sitting on the market and taking much less money several months down the road. Entry-level, detached homes priced up to $699,000 are selling. Luxury homes priced between $1.2 million and $1.9 million are facing stiff competition from each other, while super-luxurious Carlsbad homes, those priced above $2 million, have sold well this year.
Today, the average home will sell between 60 and 90 days. Homeowners can beat the average by understanding the local market. Knowing your competition is the key to selling in a slower market.
Buyers tip-toe
The average Carlsbad buyer is cautious when purchasing a home. By utilizing the many tools available to them (agents, online Web sites and etc.), the homebuyer carefully sifts through hundreds of homes. The buyer will then analyze recent neighborhood sales, visit the community homeowner's association Web site and even research the distance to local shopping. Only after a property meets their criteria will the serious buyer schedule a time to see it. A seller in today's market must look at all of these different factors when setting the price of their home. If the property has been for sale for more than 30 days or has had 10 to 12 qualified buyers through it with no offers, the homeowner needs to re-evaluate the situation. Since 2006, Carlsbad real estate has been slowly re-pricing itself as buyers determine what they are willing to pay for a home. Also, financial giants such as Wells Fargo and Countrywide are eager to get rid of homes that have been taken back via foreclosure. In select neighborhoods, these foreclosures are setting new market prices. Understanding the market will help the homeowner effectively counter low offers without offending skittish buyers and potentially blowing the deal.
Buying-up in a declining market
Serious homebuyers must consider this an opportune time to move-up within Carlsbad. In order to combat the slower selling market, homeowners are making price reductions. Although some homeowners are going through the rear-window thinking “I could have sold for more,” smart movers realize that although you are selling for less money, you will be buying for less. The higher-priced homes often are discounted more than their lower-priced compatriots. A $20,000 price-reduction attracts attention when the property is worth $500,000. But for an $800,000 home, a $20,000 reduction doesn't have the same effect. Homeowners must make more dramatic reductions to make an impact. The move-up buyer may have to discount $20,000 to get their property sold, but will buy $65,000 better on the move-up.
Carlsbad's competitive market
Luxury homes is currently the most competitive market in Carlsbad. There are more than 150 homes currently selling in Carlsbad for $1.2 million and above. Homes in this price range are, on average, more than 4,000 square feet and located within a desirable community that hosts an array of amenities like a resident-only clubhouse, walking trails and top-ranking schools. Only about 10 homes in this price range have been selling per month, leaving more than 15 months of inventory; a high number that points to over-supply. Seventy of the more than 150 actively marketed homes were built after 2004, which means owners are trying to resell these recently constructed homes. Those who own luxury homes must be aware of the current competition and analyze their situation carefully.
Market summary
Selling in the current market should take between 60 and 90 days. Accurately pricing a home will shorten this time period to 30 days. Sellers should expect low offers on their home and be prepared to counter effectively without offending skittish buyers. Sellers who battle over small differences in price will end up sitting on the market and taking much less money several months down the road. Entry-level, detached homes priced up to $699,000 are selling. Luxury homes priced between $1.2 million and $1.9 million are facing stiff competition from each other, while super-luxurious Carlsbad homes, those priced above $2 million, have sold well this year.