Local Condo Market Conditions for Carlsbad CA and Nearby Communities (as of December 2012)
I recently reported on the local market conditions for single family detached homes in Carlsbad and surrounding communities, to help alleviate some of the confusion about what is going on in the housing market so buyers and sellers can make informed decisions about selling and/or buying.
Local Housing Market Conditions for Carlsbad CA and Nearby Communities
So how is the condo market doing in Carlsbad and nearby North San Diego coastal communities? Are we seeing some of the same trends that are appearing on a national level (see infographic below, courtesy of Keeping Current Matters).
How are local prices and how much inventory do buyers have to consider?
So did the local condo market shift at end of 2012 as compared to the end of Q3? Let’s see.
1. In general the MLS data show that Carlsbad condo housing conditions and nearly all nearby communities remain seller markets, where overall conditions favor the sellers based on supply and demand.
2. Some of these local markets lost more inventory as of the end of December as compared to September, with Carlsbad, Del Mar, Cardiff and Vista easing a bit but still fairly strong seller markets.
3. Average sales prices also shifted, decreasing in some areas but rising in others, another indication of the local nature of our condo real estate market without a consistent pattern.
So what does mean for Carlsbad area condo buyers and sellers?
It’s clear real estate is local. Media reports do not do a good job of representing what is happening in the local area which creates more confusion for consumers who need to sell and/or buy a condo.
Like the market for detached single family homes, the Carlsbad market, and most others nearby, remain very competitive, with less inventory (under 3 months in most cases) than earlier in the year and with strong demand. The supply and demand for condos means multiple offers in many cases and potentially higher prices. As a buyer you are dealing with more competition on a well-priced condo, and even your best offer may not be good enough.
Knowing all this can help you plan your home buying strategy with your REALTOR.
Sellers need to understand that while they may receive multiple offers, it is essential to pay close attention to both price and terms/conditions to determine the best offer. Most buyers these days are pretty savvy and aren’t willing to overpay.
Keep in mind that homes that are not a cash purchase still need to appraise against tough lender guidelines. 47% of the condo sales in these communities in December were for cash, which means tough competition for buyers with loans, and 30% were short sale transactions.
Will this market be sustained? Or will things shift now that the holidays are over and we are approaching the traditional Spring market? Time will, of course, tell, but I don’t expect a rapid uptick in inventory although it looks like more is coming on the market. Buyers who want to buy need to be prepared to move quickly.
Stay tuned for updates on our local housing market. And please feel free to let me know if I can help you make more sense out of your buying and selling choices in Carlsbad CA area and other nearby coastal communities.
SEARCH FOR CARLSBAD CONDOS FOR SALE
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