Looking at the our local real estate barometer it reads, “beautifully sunny with cold rain.” Carlsbad homes are selling in number, mortgage rates are low and the average time a home will take to sell is down. Yet, the cold reality of foreclosure and price-correction is present. Dress warm.
Strong local market
Overall, the Carlsbad real estate market is vibrant. During the first three months of sales, about 430 homes sold, compared to 397 in 2006. The average price for a detached home in Carlsbad is $850,000 and holding steady. Most of the massive tracts of Carlsbad's new construction have sold leaving less competition. With fewer homes on the market, sellers are more likely to achieve their asking price. For home buyers, the once-reluctant homeowners have finally reduced their asking-prices. The federal reserve has kept mortgage rates low, around six percent. Many economists agree that the price corrections of 2006 was evidence of a “market-bottom.” With such positive news for buyers and sellers, why is the most important topic in real estate about foreclosures?
Why foreclosures
From 1998 to 2005 the Carlsbad market was appreciating. If the homeowner was unable to make their mortgage payments, most often they could sell and have money to spare. Welcome real estate market 2006. In a fight for balance, real estate appreciation went flat. Some homeowners did not factor in an appreciation slowdown, even with prices holding, the first foreclosure properties began to hit the market. Then more change.
Freddie Mac, the nation's largest purchaser of subprime loans, will limit it's purchasing of loans made to those with below-average credit. This news has made national headlines for months. Financial experts estimate the decision will limit the homebuying potential of 15 percent of all homebuyers, and hurt those wanting to refinance their adjustable rate mortgage. This helps to bring foreclosure discussion center stage.
Purchasing a foreclosure property
In today's market, many investors with money still choose real estate as their primary vehicle. And they see foreclosure property as an opportunity. These buyers work to find foreclosure or pre-foreclosure property to purchase the home directly from the bank. There is significant cost to the bank to go through the foreclosure process. The process can also take up to a year or more. Meanwhile, the interest on the home loan is not being paid and the bank has costs in selling the foreclosed property. The idea is that a savvy buyer could save the bank this cost and pocket the difference.
Currently, this is not the case. Banks keep their costs low through a streamlined foreclosure process and spread the costs over hundreds of homes across the county. And since there is still a vibrant local real estate market, most foreclosure property is turned over to a real estate broker to advertise and sell to the open market. A recent bank-owned property in Del Mar garnered 15 offers and sold for more than the list price. The bank is more likely to advertise on the open market and get the best price the market will allow. Sea
Strong local market
Overall, the Carlsbad real estate market is vibrant. During the first three months of sales, about 430 homes sold, compared to 397 in 2006. The average price for a detached home in Carlsbad is $850,000 and holding steady. Most of the massive tracts of Carlsbad's new construction have sold leaving less competition. With fewer homes on the market, sellers are more likely to achieve their asking price. For home buyers, the once-reluctant homeowners have finally reduced their asking-prices. The federal reserve has kept mortgage rates low, around six percent. Many economists agree that the price corrections of 2006 was evidence of a “market-bottom.” With such positive news for buyers and sellers, why is the most important topic in real estate about foreclosures?
Why foreclosures
From 1998 to 2005 the Carlsbad market was appreciating. If the homeowner was unable to make their mortgage payments, most often they could sell and have money to spare. Welcome real estate market 2006. In a fight for balance, real estate appreciation went flat. Some homeowners did not factor in an appreciation slowdown, even with prices holding, the first foreclosure properties began to hit the market. Then more change.
Freddie Mac, the nation's largest purchaser of subprime loans, will limit it's purchasing of loans made to those with below-average credit. This news has made national headlines for months. Financial experts estimate the decision will limit the homebuying potential of 15 percent of all homebuyers, and hurt those wanting to refinance their adjustable rate mortgage. This helps to bring foreclosure discussion center stage.
Purchasing a foreclosure property
In today's market, many investors with money still choose real estate as their primary vehicle. And they see foreclosure property as an opportunity. These buyers work to find foreclosure or pre-foreclosure property to purchase the home directly from the bank. There is significant cost to the bank to go through the foreclosure process. The process can also take up to a year or more. Meanwhile, the interest on the home loan is not being paid and the bank has costs in selling the foreclosed property. The idea is that a savvy buyer could save the bank this cost and pocket the difference.
Currently, this is not the case. Banks keep their costs low through a streamlined foreclosure process and spread the costs over hundreds of homes across the county. And since there is still a vibrant local real estate market, most foreclosure property is turned over to a real estate broker to advertise and sell to the open market. A recent bank-owned property in Del Mar garnered 15 offers and sold for more than the list price. The bank is more likely to advertise on the open market and get the best price the market will allow. Sea