The local real estate market surpassed expectations this winter as properties sold quickly and for near full asking price. Carlsbad homes priced under $1 million sold in an average of 30 days, with many selling in the first week of being listed. With multiple offers, brokers have been able to secure closer to asking prices. In some cases, slightly over asking.
The winter market is traditionally characterized by higher market time, fewer signed contracts and less overall activity. 2012's winter market bucked tradition with the average home securing 99 percent of asking price and a 28 percent increase in signed contracts per-month over the same winter period in 2011. The winter sales activity could have been even higher, but there were too few homes listed for-sale during the holidays.
October-through-December inventory levels stayed at or below one-month of for-sale property. With an even market having 6 to 8 months of inventory, this qualifies as a bona fide scarcity. The activity was not isolated in Carlsbad. Throughout San Diego County, real estate professionals are reporting a resurgence of multiple offers, higher asking prices and faster sales than in the previous 18 months.
A direct result of lower mortgage rates, lower prices low and changing buyer sentiment toward the overall future of real estate.
Carlsbad luxury home market is experiencing a resurgence of activity as nearly double the number of luxury home sales over $1 million occurred in 2012 versus 2011. Capable homebuyers are finding fewer options in the $800,000 to $1.1 million range and are moving their price range up to buy semi-custom estates with larger yards and superior improvements.
Without the ample short sale or foreclosure homes beating down neighborhood pricing, worthy homes now have the opportunity to secure a buyer.
These are the price ranges that are defined by large half-acre and above lots with extensive rear yard improvements such as outdoor fireplaces, luxury pools and sport courts.Carlsbad condo home sales in winter quarter of 2012 were robust.
Average sale price for attached property in Carlsbad was up over 10 percent from the winter quarter of 2011; $365,000 from $322,000. The average time it took to sell a condo or townhome took 60 percent less market time in 2012 with multiple offers on many of the available properties.
Carlsbad condos and townhomes have attracted more investors in 2012. With the new lower mortgage rates, Investors are able to borrow 75 percent of the value of the condo at a 4 percent 30 year fixed mortgage rate. This leverage has enabled investors to secure super-sized return on capital of 6 percent-10 percent.
Understand the changing market
For years the local real estate market has been flooded with an ample supply of available single-family property. In 2010, supply of homes began to lessen and the price declines stabilized.
Buyers still felt no urgency to purchase. Some even expected another wave of foreclosures and short sales to push prices further. In 2012 with a growing supply of positive news on real estate and fewer, not more, foreclosures and short sales, homebuyers became more positive on the future of real estate. Coupled with the current shortage of available for-sale property, today's homebuyers is having trouble finding a suitable home. And those desirable homes often have multiple parties interested.
Some relief from the shortage may come during this new year. Typically, there is a gradual increase in available homes for-sale that come on the market from January to March. Through the first 60 days of 2013, homebuyers can expect to see a 15 percent increase in the number of available homes.
This means more homes and choices for a home buyer to consider. Homebuyers should take every effort to become a "qualified buyer" and go through the steps of full prequalification. This will help you stand out among other offering parties.
Homeowners considering selling their property should know that fewer competing properties means better opportunity to get a higher price for your home.
But today's homebuyers are selective and those homes needing remodeling and/or major repairs are typically overlooked. Plan accordingly.
Valuating a home is harder
With fewer homes selling in the North County market, an accurate valuation of a property remains a challenge. Those homeowners wanting to refinance will have fewer comparative sales. Homeowners looking to sell property may not have direct comparatives to easily compare and gauge an accurate asking price.
Low inventory is good for homeowners looking for higher prices, but how much higher can you ask and still not 'overprice' the market. Here are three quick tips to help you get a better feel on value of your property.
1. Ignore short-sales: Short-sale property are not characteristic of true market value. Many of these homes are priced below market value
to compensate for costs not typically in a traditional transaction. Also, a short sale owner is not motivated to get more on their price, as they will walk away from the property with nothing – regardless of the sale price.
2. Watch market time: If a neighbors property sells in the first week to multiple offers, the price of the next comparable home may need
to be priced slighly higher. Asking 3% to 5% more than homes sold 6-12 months ago could be a risk worth taking. Smart agents will research to the "why's" a property sold quickly as to make sure the quick sale was not just a fluke that leads to an overpriced listing and an unhappy client
3. Watch your competition: Fewer homes means fewer competing homes and a better chance to get more for your home. Look for homes with similar utility: same bedrooms, similar rear yard size and/or improvements that may attract a certain buyer. If you're the only home in the general area with a massive rear yard and pool, you may have an opportunity to secure a strong price.
Lund can be reached at [email protected]
The winter market is traditionally characterized by higher market time, fewer signed contracts and less overall activity. 2012's winter market bucked tradition with the average home securing 99 percent of asking price and a 28 percent increase in signed contracts per-month over the same winter period in 2011. The winter sales activity could have been even higher, but there were too few homes listed for-sale during the holidays.
October-through-December inventory levels stayed at or below one-month of for-sale property. With an even market having 6 to 8 months of inventory, this qualifies as a bona fide scarcity. The activity was not isolated in Carlsbad. Throughout San Diego County, real estate professionals are reporting a resurgence of multiple offers, higher asking prices and faster sales than in the previous 18 months.
A direct result of lower mortgage rates, lower prices low and changing buyer sentiment toward the overall future of real estate.
Carlsbad luxury home market is experiencing a resurgence of activity as nearly double the number of luxury home sales over $1 million occurred in 2012 versus 2011. Capable homebuyers are finding fewer options in the $800,000 to $1.1 million range and are moving their price range up to buy semi-custom estates with larger yards and superior improvements.
Without the ample short sale or foreclosure homes beating down neighborhood pricing, worthy homes now have the opportunity to secure a buyer.
These are the price ranges that are defined by large half-acre and above lots with extensive rear yard improvements such as outdoor fireplaces, luxury pools and sport courts.Carlsbad condo home sales in winter quarter of 2012 were robust.
Average sale price for attached property in Carlsbad was up over 10 percent from the winter quarter of 2011; $365,000 from $322,000. The average time it took to sell a condo or townhome took 60 percent less market time in 2012 with multiple offers on many of the available properties.
Carlsbad condos and townhomes have attracted more investors in 2012. With the new lower mortgage rates, Investors are able to borrow 75 percent of the value of the condo at a 4 percent 30 year fixed mortgage rate. This leverage has enabled investors to secure super-sized return on capital of 6 percent-10 percent.
Understand the changing market
For years the local real estate market has been flooded with an ample supply of available single-family property. In 2010, supply of homes began to lessen and the price declines stabilized.
Buyers still felt no urgency to purchase. Some even expected another wave of foreclosures and short sales to push prices further. In 2012 with a growing supply of positive news on real estate and fewer, not more, foreclosures and short sales, homebuyers became more positive on the future of real estate. Coupled with the current shortage of available for-sale property, today's homebuyers is having trouble finding a suitable home. And those desirable homes often have multiple parties interested.
Some relief from the shortage may come during this new year. Typically, there is a gradual increase in available homes for-sale that come on the market from January to March. Through the first 60 days of 2013, homebuyers can expect to see a 15 percent increase in the number of available homes.
This means more homes and choices for a home buyer to consider. Homebuyers should take every effort to become a "qualified buyer" and go through the steps of full prequalification. This will help you stand out among other offering parties.
Homeowners considering selling their property should know that fewer competing properties means better opportunity to get a higher price for your home.
But today's homebuyers are selective and those homes needing remodeling and/or major repairs are typically overlooked. Plan accordingly.
Valuating a home is harder
With fewer homes selling in the North County market, an accurate valuation of a property remains a challenge. Those homeowners wanting to refinance will have fewer comparative sales. Homeowners looking to sell property may not have direct comparatives to easily compare and gauge an accurate asking price.
Low inventory is good for homeowners looking for higher prices, but how much higher can you ask and still not 'overprice' the market. Here are three quick tips to help you get a better feel on value of your property.
1. Ignore short-sales: Short-sale property are not characteristic of true market value. Many of these homes are priced below market value
to compensate for costs not typically in a traditional transaction. Also, a short sale owner is not motivated to get more on their price, as they will walk away from the property with nothing – regardless of the sale price.
2. Watch market time: If a neighbors property sells in the first week to multiple offers, the price of the next comparable home may need
to be priced slighly higher. Asking 3% to 5% more than homes sold 6-12 months ago could be a risk worth taking. Smart agents will research to the "why's" a property sold quickly as to make sure the quick sale was not just a fluke that leads to an overpriced listing and an unhappy client
3. Watch your competition: Fewer homes means fewer competing homes and a better chance to get more for your home. Look for homes with similar utility: same bedrooms, similar rear yard size and/or improvements that may attract a certain buyer. If you're the only home in the general area with a massive rear yard and pool, you may have an opportunity to secure a strong price.
Lund can be reached at [email protected]