With the more stringent requirements in place for obtaining a mortgage, and for a variety of economic reasons, the manner in which buyers are financing a home in Carlsbad and surrounding communities has shifted. As one example, there are more investors buying properties for cash since prices are more favorable.
VA (no money down) and FHA (only 3.5% downpayment needed) have become increasingly popular ways to finance a home in Carlsbad, especially for first time buyers, and because many other loan products have disappeared. FHA can be a challenge in some condo complexes here because of the ownership percentages which exceed in the FHA guidelines of 51%, or in the case of recent conversions to condos in the last 3 years or less.
And some area prices preclude using anything other than cash or jumbo loans because prices far exceed the limits.
So how are people financing a Carlsbad home, and properties in nearby communities?
|
|
Total
|
Cash
|
VA
|
FHA
|
Conventional
|
Other
|
|
Carlsbad
|
615
|
118
|
12
|
70
|
404
|
11
|
|
Encinitas
|
225
|
52
|
3
|
20
|
147
|
3
|
|
Cardiff
|
44
|
10
|
0
|
7
|
26
|
1
|
|
San Marcos
|
652
|
160
|
33
|
136
|
304
|
19
|
|
Oceanside
|
1283
|
356
|
183
|
250
|
457
|
27
|
|
Rancho Santa Fe
|
68
|
27
|
0
|
0
|
34
|
7
|
|
Del Mar
|
72
|
20
|
0
|
0
|
51
|
1
|
|
Solana Beach
|
70
|
25
|
0
|
1
|
43
|
1
|
|
TOTALS
|
3019
|
768
|
231
|
484
|
1466
|
70
|
|
%
|
|
25%
|
8%
|
16%
|
49%
|
2%
|
Cash transactions ranged from a low of 19% of the sales in Carlsbad, to a high of 40% in Rancho Santa Fe, the most expensive real estate market in San Diego and one of the pricier towns in the US in terms of average price (YTD average Rancho Santa Fe sales price was slightly over $3 million).
Conventional loans are still the primary way for folks to finance a Carlsbad home or in the other communities in my area, based on these statistics for YTD 2009, with almost half financed through traditional means. Conventional loans accounted for 36% of the Oceanside and 47% of the San Marcos transactions, communities with large numbers of short sales and REOs, and 50% of the high end loans in Rancho Santa Fe. The other towns saw 59% or more of their sales financed by conventional loans.
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If I can provide more information about Carlsbad and surrounding areas, or the housing market in general, or otherwise assist you in your homes search, please contact me by phone or text at (760) 840-1360 or email me at JDowler@remax.net.
All content copyright © 2009 Jeff Dowler Carlsbad Homes and Real Estate Tidbits
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You have a far higher percentage of conventional and cash than do we.
I suspect that the price range averages higher too.
Very nicely done. I love this stuff.