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Solana Beach Real Estate - Solana Beach Market Report for February 2009

By
Real Estate Agent with eXp Realty of California, Inc. CA DRE #01490977

Solana Beach real estate market report - Jeff Dowler

Solana Beach is an affluent coastal town south of Encinitas and Cardiff, and among the more expensive coastal communities. Despite changes in prices over the last several years Solana Beach has seen less dramatic changes in their real estate market than some other nearby towns. 

READ MORE: Solana Beach Real Estate 

As a buyer or seller in the Solana Beach real estate market, understanding recent trends and current market conditions is essential in order to make informed decisions; area media reports focus on general market conditions and therefore will not provide an accurate picture of the local housing market in Solana Beach. 

Solana Beach seen from the hills - Jeff DowlerThe following data are taken from the San Diego MLS (private sales are not included in these statistics, nor are multifamily properties). The data are believed to be reliable but are not guaranteed. 

In February 2009 there were 8 homes sold in Solana Beach, as compared to 10 sold in January (a 20% decrease in sales). Here's the breakdown of overall activity.

  • All the homes were attached homes; no detached homes closed escrow in February (vs. 7 closing in January)
  • The average sales price was $653,000 and the median was $561,250 (the sales price is generally much higher for detached homes - $1.549 million for year-end 2008, and $1.289million for the 7 closing in January 2009)
  • Attached homes that sold in February were on the market an average of 113 days
  • The average home sold at 92% of the asking price

At the end of February 2009 there were 102 Solana Beach homes for sale (59 detached, priced from $475K up to $4.995 million, and 43 attached homes, priced from $549K to $1.95 million). This represents an inventory of 7.6 months for attached homes and 14.5 months for detached based on the current rate of sales over the last 6 months.  These absorption rates are encouraging when compared to many other parts of the country, some of which have over 2 years of inventory.

In February 25 homes came on the market: 16 detached and 9 attached. During this time 7 homes went pending (1 detached, 6 attached). 

This overview of the Solana Beach real estate market is based on information provided by the MLS for homes that went under contract in the last couple of months and closed in December. More details can be provided if needed with regard to current activity as well.

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If I can provide more information about Solana Beach, 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.

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All content copyright © 2008 Jeff Dowler Carlsbad Homes and Real Estate Tidbits

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Jeff Dowler, CRS
Certified Residential Specialist / Realtor®


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Sharon Paxson
Sharon Paxson, Realtor® EQTY Forbes Global Properties - Newport Beach, CA
Newport Beach Real Estate

Jeff - very nice market report. I particularly like how you included the absorption rates. Nice job.

Mar 09, 2009 04:52 AM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Sharon - well some people don't seem to care about the absorption rate I find it useful, especially for sellers. And it varies from area to area.

Jeff

Mar 11, 2009 03:07 AM
Anonymous
Dave

Hi Jeff, 

I am not a real estate expert, just a prospective buyer.  I have read your analysis and am seeking a little clarification. 

Wouldn't the fact that 25 homes coming on the market vs. only 7 homes selling in february show that the "Months of inventory" stat that you are calculating is likely to start trending upwards quite quickly?  If 3-4 times more homes come on the market vs. the number of homes that sell won't the months of inventory be rapidly increasing?  What does this trend along with the fact that there is already 14.5 months inventory for detached homes in Solana Beach tell you about the future price direction?

Thank you for the Blog postings and analysis, I have enjoyed reading them!

 

Dave 

Apr 03, 2009 09:39 AM
#3
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Dave:

You raise a good point, and the data for March will show whether the trend toward increased months of inventory is true or not. As we are seeing in other communities, while the inventory is increasing the volulme of sales is as well. I will be publishing the March data for Solana Beach very shortly.

Thanks for your thoughts and questions. Glad you are enjoying the posts. If there is other stuff you are wondering about don't hesitate to let me know.

Jeff

Apr 05, 2009 05:06 AM
Anonymous
Dave

I guess I have my own personal theory or "hunch" regarding more affluent costal areas.  It seems properties in  newer neighborhoods and in starter type price segments (further out from the coast) have suffered the greatest price declines due to foreclosures and a larger percentage of homes that are underwater.  Properties like the ones in solana beach and also del mar, la jolla, etc. strike me as more move up buyer type homes.  These neighborhoods seem to be more established and presumably have fewer people that purchsed without down payments and fewer people that purchased at or around the price peak.  As homes in these neighborhoods come on the market, for whatever reasons, where are the move up buyers going to be?  Will the be selling their starter homes or borrowing against them to raise downpayments?  It seems that there could be a case for large price declines in upper price point homes and neigborhoods as sellers realize that not many buyers have the down payment or can qualify for $800k+ homes (not to mention the higher jumbo rates).  As a prospective move up buyer, I see a trend of increasing inventory and will continue to wait to buy as it seems likely that prices and inventory will favor me more in the future.  Would you agree with this assessment?  What are you seeing in terms of new inventory vs. sales in other high dollar zip codes (La Jolla, Del Mar, Carmel Valley, etc.)?

Apr 07, 2009 09:15 AM
#5