It's hard to believe but you CAN buy a condo in North County Can Diego for less than $100,000. And some of them are 2 and 3 bedroom.

If you are seeking a new home in our area in this price range, check out my recent post on condos for less than $100,000.

BTW, if you would like a customized list of homes, under $100,000 or otherwise, in a San Diego community, please send me an email and I will send you the information you need.

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If I can provide more information about 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.

All content copyright © 2009 Jeff Dowler

The Union Tribune reported some negative AND postive news on the housing market yesterday. The "bad" news is that the number of sales declined again, the 34th month in a row. No real surprise there.

However, the good news (well, more so if you are a seller) is that housing prices rose across all three categories of housing - resale homes, resale condos, new condos and homes.

Here's a link to the full article. I suspect we will continue to see more buyers coming into the market as has been happening for the last couple of months. Stay tuned for more updates.

There continues to be lots of talk, and reports, in the media, of the housing market in general, with recent headlines noting the drop off in sales and in the median price. The big headlines, particularly in the large newspapers or on the Internet, often refer to the statistics on a national level. And that's all well and good. However it can really distort the impressions of what is going on in your particular market (if you are selling) or  the one you are pursuing for your relocation. A good example is Austin, Texas (as just one location) where the trends in the housing market are markedly different than what the papers are reporting.

My thinking on this has been inspired by a recent article in REALTOR Magazine, edited by Robert Freedman, about NAR's Chief Economist, David Lereah and his thoughts on the DNA of local markets titled "What's Your Area's DNA"  (and his recent book on "All Real Estate is Local"). There are tangible and intangible characteristics of all communities, present and past, that can impact real estate in those communities.And this makes a lot of sense to me, given what I have seen here in San Diego and from tracking the MLS market statistics, where one sometimes sees a different pattern in prices, supply and demand, marketing time, absorption rate, homes for sales and so on, even on a month to month basis.There is also the impact that comes from published studies that cite certain towns or communities as being the most desirable for jobs, or safety, or having the best educational resources, and so on.

My emphasis is that you really need to focus on the local market and understand, if you will, the "genetic makeup" of that market. And a knowledgeable agent will have this information. While prices may be rising, or dropping in a general area, a local market might not be experiencing the same changes. But the statistics that you hear about or read may create an erroneous impression.

Local markets, including specific neighborhoods or even particular high rise or other condo buildings, can be impacted by a variety of factors - the desirability, available inventory vs. demand (some local areas have almost none while the large community may have an excess), demographics, price range, local economic conditions (some neighborhoods are seeing more foreclosures and short sales than others), views, proximity to desired amenities, proposed changes in the area (e.g., a new upscale shopping mall), status as a specialized community (e.g., large percentage of retirees, age-restricted community), schools (e.g., are school boundaries changing, is there a new principal, is a new school being built), newness (e.g., brand new construction not previously seen in the area), among others. So understanding the specifics of the area you are in, or interested in, will help you understand what is going on with prices and demand. And what in happening on one area may not be true in others.

This is not to say you should not pay attention to the statistics for more general areas. Certainly the larger trends can, and sometimes do, trickle down to local communities, but often at a later point in time. But your focus should be more local, and over a period of time, so you are as educated as possible and can make the most informed decision about buying and selling.

If you are contemplating moving to the Carlsbad area and are interested in new construction, or if your interest is simply learning more about master planned communities as an alternative for your next home, you might want to visit my community profile on La Costa Ridge.

La Costa Ridge is the newest master planned community in the south Carlsbad area known as La Costa, located on the highest hill with dramatic views in all directions. While still being built, there are currently a number of homes for sale in La Costa Ridge. 

Each of the 4 builders has model homes to explore, and some of the completed homes are ready for occupancy. You can also buy pre-construction which can provide some opportunities for site selection and customization depending on the builder options.

Are you considering a move to the Carlsbad area?

La Costa Greens is a new master planned community that offers a range of housing in 6 neighborhoods built by 4 well-known area builders.

Take a look at the community profile and learn more about homes for sale, amenities (including The Presidio, the residents' private club) and more.

If I can answer questions about the area, the housing market, relocation, or if you are a first time buyer, please let me know. Fans of Coastal San Diego has more information on life here in "paradise."

Sellers - what percentage are you?

Is your home priced correctly so it will sell quickly, say this month? Or you going to be one of the sellers whose homes does not sell and becomes a statistic for next month?

In the communities near me (North San Diego County) , for February 2007 approximately 19% of the homes that were active on the market went under contract and/or sold. That means, of course, that a whopping 81% of the homes that were on the market did not sell. That's 4 out of every 5 homes. [obviously these numbers may be different in your area...maybe even higher!]

So which percentage do YOU want to be?

• Did you price your home correctly to be one of the 20% that will sell?
• If you are planning to market your home, don't you WANT to be the 1 out of 5 homes that DOES SELL next month?
• Or are you going to price your home higher than the market will bear and become the 80% that is still listed a month later?

It's your choice. Choose wisely. Use a REALTOR and find out what you need to know.

It costs you money EVERY DAY that your home does not sell.

I just posted a Market Update Guest Blog which focuses on the mortgage industry and recent issues, especially in the subprime market. The next few weeks will be telling in terms of the impact this may have on some buyers (those who would have normally been looking for 100% financing).

It is helpful reading, and reprinted verbatim with the author's permission. Good article for both buyers and sellers in this housing market.

I recommend you take a look at it.

Jeff

I am often asked by buyers if this is a good time to buy. My answer is - it depends.

Certainly there are come factors now that would encourage you to buy depending on your personal and financial situation. There is alot of inventory, and our prices are remaining stable in most areas, with some small drops in median prices in other communities. The rates are very favorable, and because of the market buyers are finding they are in a better position to negotiate with sellers, and to obtain some concessions.

So if you need to buy, or want to move up or down in size, now is probably a good time for you. One issue that holds some buyers back is the question of where the market is going, and we just don't have a crystal ball. It appears that things will remain fairly strong and prices are not going to plunge. So if rates go up you could end up spending more for the same house down the road. That is a risk you will have to decide on for yourself. If you are not sure the time is right, then I would wait it out.

So sellers, is this a good time for you? Well, again, it depends on your situation. If you have to relocate, or move due to a change in family circumstances, etc. then it's a good time. Just price your place very competitively due to the competition and don't be greedy. And if you are in a short sale or pre-foreclosure situation you don't really have a choice.

If you NEED to get a certain amount of money, or want to break even based on what you paid for a couple of years ago it may not, in many communities, be prudent for you to sell. With appreciation being fairly flat in the last 1-2 years, after paying a commission you will not come out ahead.

The worst thing is to encourage someone to buy or sell when the time is not right for them, for whatever reason. And that is something I simply will not do.

If you have any questions, please feel free to contact me so we can discuss your options.

Are you thinking about moving to Southern California?

Here's a marketing piece on Carlsbad (where I live) to help you learn more about the area's housing, restaurants, shppoing, beaches and more. I hope you will enjoy it. Just click on the surfboard and surf away.

And if you have some feedback, I would love to hear it.

BTW - If you are interested in other areas of  San Diego, let me know and I will share more information about them and even provide some pics.

Jeff

I am inviting a number of folks I know in real estate related professions to contribute their thoughts to my blog, as I want to make sure that I continue to provide the information consumers would probably like to have, whether buying, selling, or simply out of general interest. I think you'll enjoy my guests.

I will keep you posted on who will be joining me here and on my other blogs, First Time Buyer Central and Fans of Coastal San Diego.

I just posted a market update from Chris Comer at Pacific Capital Mortgage. Take a look. Chris will be providing more information about the mortgage industry and answering questions, so please feel free to write in with any specific mortgage questions that you have.

Have a great weekend!

The headlines have blasted us with negative information about the housing market in San Diego throughout 2006

Be careful when reading the headlines, and don't draw your conclusions from them. Rather, read the entire article, as you will often find the news to be more positive than the headlines would lead you to believe. After all, negative news tends to sell papers.

If you want the lowdown on the housing market, read my post on the year-end housing market stats for San Diego. The news is pretty positive (although house prices are still high), and encouraging for the year ahead.

Jeff

If you are moving here from another part of the country, especially one that is not on the list of most expensive cities in the US (e.g., Boston, New York, Washington, DC), you are probably experiencing sticker shock as you start looking at homes for sale.

Even though you have most likely seen some of the articles in the newspapers or on the Internet about the realities of home prices here on the West Coast, somehow it always seems worse when you are actually searching for a home, rather than simply reading about the plight of others living in expensive areas such as ours. And while the market has changed drastically in the last couple of years, it does not mean that it is inexpensive to live here now.

There was also a recent article in the Union-Tribune entitled Locked out of the Market, which focused on the many folks living here who cannot afford to buy since their salaries are lower than that needed to buy the median priced home. Scary stuff, but not a surprise for those who live here.

Keep in mind that the median price home they used was $477,000, and it IS the median, i.e., 50% of the homes cost less. Now, while that doesn't mean there are lots of properties, or any in our area, costing $100K (except for mobile homes), there are options - in my general area there are well more than 250 properties with at least 2 bedrooms for $350K or less. Still a high price compared to places like Austin, TX, but  it does mean there are some options for people relocating here who have lived in far less expensive places - there are just trade offs, and major adjustments.

This, in no way, means that we do not have a serious housing problem, here and elsewhere, and the problem is likely to get worse unless salaries rise dramatically and there is more affordable housing created. And it's a challenge for many even to find affordable rentals. There are many people here, and elsewhere, who may never realize the dream of owning a home, even with creative financing options for first time buyers, seller concessions, price drops in some communities, and more.

So, if you are frustrated, I do understand. And coming from Boston was a shock even for me. But there are some good loan programs out there, especially for first time buyers, and with the inventory, sellers are willing to negotiate much more than in the past. Will the prices drop further? Hard to say. The changes we have seen are, in the overall picture, pretty minimal. If I can help in any way, or answer any questions about the market and the options you have, please let me know.

You've heard me mention this before, and perhaps you are already not paying much attention to the media, but the negative headlines have continued, with perhaps a few positive notes here and there. I attended a very well done training session today for agents, mortgage/title/escrow professionals (about a hundred folks) and the consensus remains that the media is NOT doing a good job of reporting the reality of what the market is doing, at least in general. Negative reports sell papers, and draw people's attention.

Is everything wrong? Absolutely not. And there have been a few positive reports (see top of this page)

It is true that the overall volume of sales has dropped way off, but given we had a couple of record years the number of sales is really pretty good. It is also true that compared to a year ago or so that many communities have seen prices drop a percentage or so ( in some case a few points). But again, given where prices had gone this is not a bad thing...and good for buyers. Plus in many areas they are not dropping month after month as has been predicted.

Other good news - interest rates are the best they have been in a very long time. The inventory is substantial, giving buyers some of the best choices they have had in over 7 years (at least here in Southern California). And while sellers now cannot expect their homes to sell quickly at full price (although we have seen perhaps 5-10% of  the new listings in the last 2 months in a number of towns sell within a couple of weeks of being listed), when you consider what houses cost in our area on average 5 years ago, the typical home has gone up 80 - 90% - not a bad return (sme tpowns have seen even greater appreciation, and some less of course).

My advice - if you read the media reports do so with a very cautious eye. Better yet, if you are serious about buying or selling, hook up with a knowledgeable REALTOR who knows the statistics and true market conditons to get the low down, and learn about the trends to get a better feel for what is really happening. You'll be a wiser consumer.