Market update: Full steam ahead
By Tyson Lund
Real Estate Business Analyst
This month we will take a moment and reflect on the 2005 real estate market. San Diego analysts continue to pen cautiously optimistic articles that warn of a possible correction in home prices, while in the very next paragraph reporting the high number of sales and strong sales prices of North County homes. MarketPointe, a San Diego-based data analysis company, stated in their 1st quarter review that in 2005, San Diego has realized the second highest net sales for a first quarter on record, trailing only the number of units sold in the first quarter of 2004. And although the Carlsbad market is very active, the data shows a flat level of appreciation.
Strong market pace
In Carlsbad, the number of single family homes sold in 2005 has closely resembled last year's record performance. From January to May, 838 homes sold within Carlsbad, compared to the 866 that sold during the same period in 2004. However, this does not mean the rapid appreciation seen in 2004 has also occurred. Sales prices have been fluctuating slightly as sellers try to remain competitive. With an increasing number of resale homes entering the market and the 43 new construction developments currently selling in the North County coastal area, homebuyers have a large number of options and are carefully choosing their dream home.
Market time
The average time for a property to be on the market before selling has been hovering around 50 days.
Inventory levels in Carlsbad
As of June 14th, there were around 367 detached and 219 attached properties currently on the market: a number that has been increasing since March. The current inventory levels are around the same as they were in August of 2004 where the average sales price for Carlsbad dropped from an average of $710,000 in July to $650,000 by October due primarily to increased competition.
Summary
The real estate market is moving. Buyers have a number of housing choices and are weighing their options carefully in an uncertain market. Sellers are faced with an enormous amount of competition and are having to price their homes accordingly. Although the amount of appreciation has leveled, Carlsbad property is retaining its value and, as stated in the June issue of the Carlsbad Business Journal, will continue to do so.
By Tyson Lund
Real Estate Business Analyst
This month we will take a moment and reflect on the 2005 real estate market. San Diego analysts continue to pen cautiously optimistic articles that warn of a possible correction in home prices, while in the very next paragraph reporting the high number of sales and strong sales prices of North County homes. MarketPointe, a San Diego-based data analysis company, stated in their 1st quarter review that in 2005, San Diego has realized the second highest net sales for a first quarter on record, trailing only the number of units sold in the first quarter of 2004. And although the Carlsbad market is very active, the data shows a flat level of appreciation.
Strong market pace
In Carlsbad, the number of single family homes sold in 2005 has closely resembled last year's record performance. From January to May, 838 homes sold within Carlsbad, compared to the 866 that sold during the same period in 2004. However, this does not mean the rapid appreciation seen in 2004 has also occurred. Sales prices have been fluctuating slightly as sellers try to remain competitive. With an increasing number of resale homes entering the market and the 43 new construction developments currently selling in the North County coastal area, homebuyers have a large number of options and are carefully choosing their dream home.
Market time
The average time for a property to be on the market before selling has been hovering around 50 days.
Inventory levels in Carlsbad
As of June 14th, there were around 367 detached and 219 attached properties currently on the market: a number that has been increasing since March. The current inventory levels are around the same as they were in August of 2004 where the average sales price for Carlsbad dropped from an average of $710,000 in July to $650,000 by October due primarily to increased competition.
Summary
The real estate market is moving. Buyers have a number of housing choices and are weighing their options carefully in an uncertain market. Sellers are faced with an enormous amount of competition and are having to price their homes accordingly. Although the amount of appreciation has leveled, Carlsbad property is retaining its value and, as stated in the June issue of the Carlsbad Business Journal, will continue to do so.