Today's real estate market is a bargain buyer's paradise.
Real estate prices in Carlsbad have slid as much as 25 percent from the high values in 2005. The average three bedroom home in Carlsbad is selling for $575,000.
The same three bedroom, 2,000-square-foot home in Carlsbad sold for $757,800 in 2005. Low prices aside, today's homebuyer is gifted thousands of dollars from the federal government, new home builders and the state of California to purchase a home this year.
People should feel good about buying this year as price declines are leveling off in many areas of North County. Such is the case in the lower price ranges in Oceanside.
It is difficult to find a three bedroom, more than 1,600-square-foot home in Oceanside for less than $300,000. For almost eight months, the prices have tried to dip below $300,000, only to find multiple bidders pushing the price back up to $300,000 to $310,000.
The same could be said for the low $500,000's in Carlsbad. The condition and location of the home are always a determining factor.
Tax credits
Homebuyers who purchase this year will be eligible for up to an $8,000 tax credit. Unlike a deduction, the credit is a dollar-for-dollar savings.
The tax credit is not required to be paid back, provided the homeowner retains ownership of their home for three years. The deduction is for those who have not owned a home in several years, thus it does not benefit the move-up buyer.
California is offering an additional state tax credit of $10,000 for those who purchase new construction in 2009. Homebuyers are encouraged to visit the few remaining new construction projects in La Costa Greens and La Costa Ridge, as the builders also are including their own incentives.
Carlsbad sales summary
During the first three months of 2005, which is considered a high point in the real estate market, the average selling price was $828,095, the average market time was 55 days and 219 homes were sold.
In 2009, the average selling price of a single-family home was $661,859, the average market time was 81 days and only 123 homes sold. With 403 detached homes currently for sale, 64 percent are more than $700,000.
Yet, those homes only account for 29 percent of the homes sold in 2009. Today's buyers are more conservative and are risking less money by buying more affordable homes.
Attached home sales in Carlsbad were sluggish for the first three months of the year. A newer, three bedroom townhome can be found for as little as $290,000; the same townhomes that sold for $450,000 in 2005.
Sales have been slow in the condo market in Carlsbad. Although pickings are slim, buyers are waiting for a deal in the single-family home market. But with the right location, townhomes in desirable areas, such as Aviara, remain in high demand.
Condo's around the La Costa golf course are attracting investors as condo buyers can find a two bedroom, 1,345-square-foot condo for as little as $190,000. A 20 percent down, 30-year fixed payment at today's rates is $1,000 a month.
Average mortgage rates on 30-year fixed loans are around 5 percent. Buyers and investors are able to buy down rates even lower into the mid 4 percent range.
Consult a qualified mortgage broker for best rate and terms.
Refinancing
The Homeowner Affordability and Stability Plan, also known as the Making Home Affordable Plan, was announced by the Obama Administration last month. It is a powerful stimulus program because it allows refinancing up to 105 percent of the appraised value of the home.
This is a program for conforming loans; those under $417,000. This is another powerful government stimulus tool that assists homeowners in refinancing out of troublesome mortgages.
Although it does not apply to those holding jumbo mortgages or loans more than the $417,000 conforming rate, this program will help keep homeowners in their homes and restricts the number of homes going for sale, stabilizing home prices. The program is expected to be ready by April 4.
Real estate prices in Carlsbad have slid as much as 25 percent from the high values in 2005. The average three bedroom home in Carlsbad is selling for $575,000.
The same three bedroom, 2,000-square-foot home in Carlsbad sold for $757,800 in 2005. Low prices aside, today's homebuyer is gifted thousands of dollars from the federal government, new home builders and the state of California to purchase a home this year.
People should feel good about buying this year as price declines are leveling off in many areas of North County. Such is the case in the lower price ranges in Oceanside.
It is difficult to find a three bedroom, more than 1,600-square-foot home in Oceanside for less than $300,000. For almost eight months, the prices have tried to dip below $300,000, only to find multiple bidders pushing the price back up to $300,000 to $310,000.
The same could be said for the low $500,000's in Carlsbad. The condition and location of the home are always a determining factor.
Tax credits
Homebuyers who purchase this year will be eligible for up to an $8,000 tax credit. Unlike a deduction, the credit is a dollar-for-dollar savings.
The tax credit is not required to be paid back, provided the homeowner retains ownership of their home for three years. The deduction is for those who have not owned a home in several years, thus it does not benefit the move-up buyer.
California is offering an additional state tax credit of $10,000 for those who purchase new construction in 2009. Homebuyers are encouraged to visit the few remaining new construction projects in La Costa Greens and La Costa Ridge, as the builders also are including their own incentives.
Carlsbad sales summary
During the first three months of 2005, which is considered a high point in the real estate market, the average selling price was $828,095, the average market time was 55 days and 219 homes were sold.
In 2009, the average selling price of a single-family home was $661,859, the average market time was 81 days and only 123 homes sold. With 403 detached homes currently for sale, 64 percent are more than $700,000.
Yet, those homes only account for 29 percent of the homes sold in 2009. Today's buyers are more conservative and are risking less money by buying more affordable homes.
Attached home sales in Carlsbad were sluggish for the first three months of the year. A newer, three bedroom townhome can be found for as little as $290,000; the same townhomes that sold for $450,000 in 2005.
Sales have been slow in the condo market in Carlsbad. Although pickings are slim, buyers are waiting for a deal in the single-family home market. But with the right location, townhomes in desirable areas, such as Aviara, remain in high demand.
Condo's around the La Costa golf course are attracting investors as condo buyers can find a two bedroom, 1,345-square-foot condo for as little as $190,000. A 20 percent down, 30-year fixed payment at today's rates is $1,000 a month.
Average mortgage rates on 30-year fixed loans are around 5 percent. Buyers and investors are able to buy down rates even lower into the mid 4 percent range.
Consult a qualified mortgage broker for best rate and terms.
Refinancing
The Homeowner Affordability and Stability Plan, also known as the Making Home Affordable Plan, was announced by the Obama Administration last month. It is a powerful stimulus program because it allows refinancing up to 105 percent of the appraised value of the home.
This is a program for conforming loans; those under $417,000. This is another powerful government stimulus tool that assists homeowners in refinancing out of troublesome mortgages.
Although it does not apply to those holding jumbo mortgages or loans more than the $417,000 conforming rate, this program will help keep homeowners in their homes and restricts the number of homes going for sale, stabilizing home prices. The program is expected to be ready by April 4.