Across the country, builders are reducing prices and offering incentives to buyers in order to get rid of their inventory of homes and land. Builders are accepting losses in order to get rid of the burden of continuing interest and holding costs. What is the average home seller doing? It appears that a lot of homeowners are following the same trend.
In Carlsbad, a major builder just reduced the price on a $1,308,585 home by $50,000 AND is offering $50,000 in incentives. That's an effective discount of 7.64%. In Chula Vista that same builder is offering a $54,000 price discount and an incentive of $40,000 on a $631,925 home; an effective price adjustment of a total of 15%! AND, they're adding a "Dream Kitchen" in the package.
We took a look at the Carlsbad market to see what sellers are doing in 92008, 92009, 92010, and 92011. In north eastern Carlsbad, north of Palomar Airport Road and east of El Camino Real (92008), there are 117 active detached single family homes. Of those listings, 52 had price adjustments of an average of 9.71%. The average discount was $112,191. That's according to Sandicor, the San Diego Multiple Listing Service (MLS), which we believe is accurate, but not guaranteed. All information in this article is based on single family detached homes listed in the MLS as of October 25, 2007.
In 92010 (northern Carlsbad, west of El Camino Real, north of Palomar Airport Road) of the 58 active listings 30 have had price adjustments (51.72%), averaging a discount of 9.8%. The average was $73,473.
In 92009, south of Palomar Airport Road and East of El Camino Real, there are 216 active listings, of which 100 have had discount price adjustments of 6.5%. The average discount was $64,709. Four listings had price increases!
In 92011, the west side of El Camino Real, 60 homes out of the 145 active listings, had price discounts of 7.83%, and average of $88,726.
In Carlsbad, it appears that somewhere between 41% and 52% of active listings have had price discount adjustments, and the discounts appear to be competitive with the advertised discounts by the builder who recently advertised here in Carlsbad.
As you can see from the variation of results from the different areas of Carlsbad it's important to look at your own particular neighborhood. If you, family, or friends are thinking about buying or selling a home, contact us to so we can help them evaluate the market before making a choice. You can reach us at 760-492-5151.
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