Local Housing Market Conditions for Carlsbad CA and Nearby Communities (September 2012)
There’s a lot of confusion out there about what is going on in the housing market. And that can lead to indecision about homes for sale in Carlsbad, and nearby.
The media is a big part of that.
It’s no wonder, since there are all sorts of media reports and headlines, sometimes conflicting, plus they focus on the general market rather than the specifics of the local communities.
Buyers and sellers need to hear and understand what really is happening in their local markets where they plan to sell and or purchase, and what this means for them.
In an earlier post for August 2012 I talked about the current inventory and pricing I am seeing, based on the MLS, in my local area – Carlsbad as well as nearby communities. And the importance of accurate information about the housing market in Carlsbad. Take a look.
So have things shifted at all?
And if so, how?
Here are some data from the MLS, for single family detached homes, to help you understand the kind of housing market we are in as of the end of September, where average sales prices are, and how much inventory there is to consider!
More importantly, how have things changed from the prior month and what are the implications for Carlsbad buyers and sellers?
Compared to AUGUST 2012...
As you can see, the Carlsbad housing market and most other nearby markets are seller markets, where overall conditions favor the sellers based on supply and demand. The exceptions are Cardiff, Del Mar and Solana Beach which are balanced markets…a balance between available inventory/supply and buyer demand. The high-end Rancho Santa Fe community is a buyer market, not surprising given average sales prices there are in the mid $2 millions. But it is a normal buyer market not an extreme one.
All of this is simply more direct evidence that real estate is local, and media reports that speak to us in generalizations cause more confusion.
These data tell us the Carlsbad market has been become even more competitive, with less inventory (under 3 months), which in many situations means multiple offers and potentially higher prices. As a buyer you are dealing with more competition on your typical house, and even your best offer may not be good enough.
Knowing all this can help you plan a home search and offer strategy with your REALTOR.
Sellers need to understand what this means as well. But it doesn’t mean you can hold out for a price that is outside market value. Despite the competition, buyers these days are pretty savvy and they aren’t willing to overpay.
Plus homes that are not a cash purchase have to appraise against tough lender guidelines.
Will this market be sustained? It’s hard to say. There certainly are some seasonal factors at play here and as we approach the holidays market conditions in our area will likely shift further. But what sellers CAN expect is that those buyers who are out there looking are SERIOUS – the others are at the mall or shopping on-line.
Stay tuned for updates on what our local market is up to. And please feel free to let me know if I can help you make more sense out of your buying and selling choices.