Ready to buy your or maybe you've been first Carlsbad home this spring? Maybe you already own a
home and are looking to sell and buy something bigger or closer to the ocean. No matter what your situation, if you are looking to buy be ready for some really stiff competition.
If you read my previous blog about Carlsbad being the 6th hottest market in the country, you know that with lack of inventory and plenty of pre-approved buyers searching, bidding wars have broken out. This isn't a problem for just Carlsbad as just about every City in San Diego County is lacking the inventory needed for starving buyers.
With interest rates still at historic lows but the threat of possible increases this summer driving buyers into a frenzy, this only helps sellers with the task of getting multiple offers.
Here are a few more factors Carlsbad home buyers will see causing challenges -
Lack Of Low Priced Homes
Carlsbad - like all North County Coastal Cities - has a lack of affordable homes anyway. Factor in so few on the market and you will have bidding wars on many of these homes. If your a first time home buyer be sure to read this article I wrote on 5 tips For First Time Home Buyers. Because of the heavy demand for lower priced homes, prices are rising fast.
Fewer Distressed Homes For Sale
Everyone remembers the housing boom we had and then the huge amount of foreclosed and short sale homes that followed. This market is all but non-existent now in Carlsbad and barely exists in the rest of San Diego county. The reason? The number of homes in some stage of foreclosure is down 12 percent from a year ago, a lot of that has to do with the rebound in pricing over the last 18 months.
Investors Are Not As Involved In Our Market
As far back as 2010, cash investors became heavily involved in the San Diego market. Cash sales rose to as high as 28% in 2013! Far above our average of 8% back in 2005. However, this year the number of cash sales has dropped to 22%, a trend I think will continue. Why? Investors are looking for deals and with Carlsbad being such a hot market and prices rising steadily, I expect them to look for homes in other areas of the country. This will lead to more traditional buyers bidding on homes which is why it is crucial you have all your ducks in a row when submitting an offer. Not sure how to accomplish this? Contact me for a free, no obligation consultation.
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