Carlsbad condo sales remain steady
Carlsbad condominium and townhome sold prices remain flat through 2011 and early 2012.
Thanks in part to low mortgage rates and greater affordability, attached property has found a pricing equilibrium.
The average attached home prices in Carlsbad between November 2011 and January 2012 remain relatively unchanged from a year prior at $326,000.
Home buyers found that with record low mortgage rates (currently below 4 percent for 30-year fixed rate) the cost of owning a condo or townhome was often equal or better to paying current rents. Average time on market is around 55 days for traditional sale property.
Short-sale's are a large part of the attached market in Carlsbad making up 40 percent of the active inventory.
Short-sales, ever the oxymoron, are averaging 155 days on market to sell.
Short sale buyers often have flexible living situations (renting month-to-month) or investors with no immediate need to close. And there are rewards for those who wait the 3-6 months for bank approval.
Short-sale homes often are discounted off market between 3 percent to as much as 8 percent.
Major changes made to VA financing
San Diego now has new VA loan limits for 100 percent financing of $477,000 for 2012.
However, VA has changed and approved lenders are now able to borrow up to $1 million for VA loans. The borrower just has to put down 25 percent of the difference between the sales price and the county limit.
For instance, on a $700,000 property, the down payment required would be $55,750 ($700,000 sales price minus $477,000 county max loan amount times 25 percent = $55,750 down payment).
This is less than 10 percent down and no PMI (Private Mortgage Insurance)! A powerful change and a great alternative to conventional financing that would require 20 percent down on this priced home, as well as avoiding more than $650 per month for FHA.
VA has also become more lenient in their qualifying guidelines, including debt to income ratios and credit score requirements.
If you have ever served in the military, the new VA changes could be very powerful in your home search.
Fixed mortgage rates continue to fall
Average 30-year fixed mortgage rates moved down to a record 3.88 percent at the end of January.
These historically low rates are helping make real estate less expensive and are pushing affordability to an all time high. Real estate investors are cheering low rates, which are enabling the investors to achieve abnormal returns of 15 percent to 30 percent returns.
Home builders are also cheering low rates. Investors are filling the void of traditional buyers in a down economy by snatching up available foreclosures and short-sales at reduced prices. This helps soak up the worrisome "shadow inventory" and glut of homes left over from boom year speculation. After years of record low-building starts, some experts worry that some cities will not have the future inventory necessary to meet future demand. These areas may see a sharp increase in homes prices when supply no longer meets demand.
Carlsbad condominium and townhome sold prices remain flat through 2011 and early 2012.
Thanks in part to low mortgage rates and greater affordability, attached property has found a pricing equilibrium.
The average attached home prices in Carlsbad between November 2011 and January 2012 remain relatively unchanged from a year prior at $326,000.
Home buyers found that with record low mortgage rates (currently below 4 percent for 30-year fixed rate) the cost of owning a condo or townhome was often equal or better to paying current rents. Average time on market is around 55 days for traditional sale property.
Short-sale's are a large part of the attached market in Carlsbad making up 40 percent of the active inventory.
Short-sales, ever the oxymoron, are averaging 155 days on market to sell.
Short sale buyers often have flexible living situations (renting month-to-month) or investors with no immediate need to close. And there are rewards for those who wait the 3-6 months for bank approval.
Short-sale homes often are discounted off market between 3 percent to as much as 8 percent.
Major changes made to VA financing
San Diego now has new VA loan limits for 100 percent financing of $477,000 for 2012.
However, VA has changed and approved lenders are now able to borrow up to $1 million for VA loans. The borrower just has to put down 25 percent of the difference between the sales price and the county limit.
For instance, on a $700,000 property, the down payment required would be $55,750 ($700,000 sales price minus $477,000 county max loan amount times 25 percent = $55,750 down payment).
This is less than 10 percent down and no PMI (Private Mortgage Insurance)! A powerful change and a great alternative to conventional financing that would require 20 percent down on this priced home, as well as avoiding more than $650 per month for FHA.
VA has also become more lenient in their qualifying guidelines, including debt to income ratios and credit score requirements.
If you have ever served in the military, the new VA changes could be very powerful in your home search.
Fixed mortgage rates continue to fall
Average 30-year fixed mortgage rates moved down to a record 3.88 percent at the end of January.
These historically low rates are helping make real estate less expensive and are pushing affordability to an all time high. Real estate investors are cheering low rates, which are enabling the investors to achieve abnormal returns of 15 percent to 30 percent returns.
Home builders are also cheering low rates. Investors are filling the void of traditional buyers in a down economy by snatching up available foreclosures and short-sales at reduced prices. This helps soak up the worrisome "shadow inventory" and glut of homes left over from boom year speculation. After years of record low-building starts, some experts worry that some cities will not have the future inventory necessary to meet future demand. These areas may see a sharp increase in homes prices when supply no longer meets demand.