The Carlsbad real estate has remained strong in 2006, despite a well publicized slow-down of the San Diego market. The change from the dominant sellers market of 2004 and 2005 has brought relief to many buyers as they regain their negotiating power. This competitive marketplace has left many sellers with questions of how the changing market affects them.
What the experts are saying
The California Association of Realtor's vice President and Chief Economist Leslie Appleton-Young, in her September 2006 market forecast, expects prices in the state to continue to rise. However, in the areas where there has been double-digit gain, such as Carlsbad, Young says, "we should face a potential leveling off of median price gains compared with the 10 percent gain we expect for the state as a whole." The leveling of the average selling price in Carlsbad is apparent, as appreciation has been flat and average sales prices have remained at the same levels for nearly 7 months.
How long to sell a home?
The Multiple Listing Service tracks real estate statistics; however the numbers have been skewed as agents continue to 'refresh' their listings. 'Refreshing' is when an agent will re-list the property they represent in order to present the home as new on the market and gather renewed interest from potential buyers.
An accurately priced home in the current market should take between 30 to 60 days to sell. If a property has been on the market longer than 90 days and has not sold, it should be re-evaluated for a price correction. There are currently around 80 homes and 40 condominium properties selling each month and they have been selling within 5% of their asking price.
Interest Rates
The Federal Reserve made headlines a few months back by halting their interest rate increases and mortgage rates have lowered slightly to their current levels of around 6.5%. This is excellent news for many in the real estate market. Borrowers with adjustable rate mortgages have more time to consider a refinance and those contemplating a purchase have excellent rates to counter the high cost of housing.
Supply of Homes
There are nearly 400 condominiums currently for sale and only about 40 are selling each month, leaving a 10 month supply of attached homes for sale. The competition has been fierce for most of the year as buyers continue to weigh their options when considering their new home. When a three bedroom attached home is selling for nearly $500,000, and you include HOA fees with any Mello-Roos fees, it may be close to the cost of a single family home at $600,000 without any fees.
There are currently 600 detached homes on the market and around 75 to 80 selling per month, leaving Carlsbad with a normal, 8 month supply of single family homes. Demand continues to be strong for Carlsbad property, shown in the number of sales and stable sales prices.
How to win in a competitive market?
For a seller, the goal is to stand-out against the competition, receive the highest number of showings from qualified buyers to create the opportunity to receive an offer at the highest market price. To do this, sellers must first price their home accurately and competitively.
A majority of Carlsbad homeowners(over 55%) have utilized Value Range Marketing and priced their home with a low and a high value. Homes priced on a range will come up in more property searches, exposing the property to more buyers. Another popular method is to gain the attention of the professionals working with qualified buyers, and thus the average buyer's agents' commissions have risen above 3%.
Offering increased incentives and pricing on a range can help a seller in a slower market, however if the value of the property does not match the asking price, the property will not sell.
What the experts are saying
The California Association of Realtor's vice President and Chief Economist Leslie Appleton-Young, in her September 2006 market forecast, expects prices in the state to continue to rise. However, in the areas where there has been double-digit gain, such as Carlsbad, Young says, "we should face a potential leveling off of median price gains compared with the 10 percent gain we expect for the state as a whole." The leveling of the average selling price in Carlsbad is apparent, as appreciation has been flat and average sales prices have remained at the same levels for nearly 7 months.
How long to sell a home?
The Multiple Listing Service tracks real estate statistics; however the numbers have been skewed as agents continue to 'refresh' their listings. 'Refreshing' is when an agent will re-list the property they represent in order to present the home as new on the market and gather renewed interest from potential buyers.
An accurately priced home in the current market should take between 30 to 60 days to sell. If a property has been on the market longer than 90 days and has not sold, it should be re-evaluated for a price correction. There are currently around 80 homes and 40 condominium properties selling each month and they have been selling within 5% of their asking price.
Interest Rates
The Federal Reserve made headlines a few months back by halting their interest rate increases and mortgage rates have lowered slightly to their current levels of around 6.5%. This is excellent news for many in the real estate market. Borrowers with adjustable rate mortgages have more time to consider a refinance and those contemplating a purchase have excellent rates to counter the high cost of housing.
Supply of Homes
There are nearly 400 condominiums currently for sale and only about 40 are selling each month, leaving a 10 month supply of attached homes for sale. The competition has been fierce for most of the year as buyers continue to weigh their options when considering their new home. When a three bedroom attached home is selling for nearly $500,000, and you include HOA fees with any Mello-Roos fees, it may be close to the cost of a single family home at $600,000 without any fees.
There are currently 600 detached homes on the market and around 75 to 80 selling per month, leaving Carlsbad with a normal, 8 month supply of single family homes. Demand continues to be strong for Carlsbad property, shown in the number of sales and stable sales prices.
How to win in a competitive market?
For a seller, the goal is to stand-out against the competition, receive the highest number of showings from qualified buyers to create the opportunity to receive an offer at the highest market price. To do this, sellers must first price their home accurately and competitively.
A majority of Carlsbad homeowners(over 55%) have utilized Value Range Marketing and priced their home with a low and a high value. Homes priced on a range will come up in more property searches, exposing the property to more buyers. Another popular method is to gain the attention of the professionals working with qualified buyers, and thus the average buyer's agents' commissions have risen above 3%.
Offering increased incentives and pricing on a range can help a seller in a slower market, however if the value of the property does not match the asking price, the property will not sell.