Carlsbad Palisades like many other Carlsbad communities is suffering from what would be regarded as buyers as a scant level of inventory. If you sell real estate everyday to Carlsbad buyers and Carlsbad sellers such as we do everyday, we can tell you what we say in your community and others each and every day.
Carlsbad real estate inventories are depressed.
Most Carlsbad sellers are reluctant to sell. When you read that about 22 percent of US home owners with a mortgage are still underwater, owing more than their home is currently worth, it doesn't exactly boost a seller's confidence that they are going to get top dollar or anything even reminiscent of it. The majority of Carlsbad home owners don’t tend to sell unless a life-changing event occurs when they’re underwater because they don’t want to take a loss on the sale of their house. CoreLogic, a highly regarded real estate data firm located in Carlsbad, shows that inventories are the most constrained in areas with the highest number of underwater borrowers.
Most of these potentially distressed mortgages are not padded with enough equity for the Carlsbad real estate owner to trade up: often times, these Carlsbad owners rely on the equity from their home to make a down payment on their next home or what we call their 'up leg' or 'down leg.' With fewer Carlsbad home owners seeing equity in their houses, they may cannot afford to move into a pricier home, which is putting the biggest pressure on “up leg” buyers like me (married with two young kids, always looking for a bigger yard and closer to the action and did I mention world-class schools, and a park down the street...and;)
Institutional, regional and local investorschaco have been crushing the market and pushing Heisman straight-arms out to any and all first, second or third time buyers without a big enough down payment are getting passed over by banks (short sales and foreclosures) for the tried and true system of receiving "all-cash-quick-close" (ACQC© my trademark patent should be back from DC any day now;) offers from these cash-rich players. From 2008-2011, investors were flipping properties but today they are land-banking these homes and sitting on them with a 4-8 year hold strategy. This has had a dramatic impact on the inventory today versus just two years ago when many of these same players were putting the slightly remodeled homes back on the market.
National banks are slowing down Carlsbad foreclosures. The Obama administration has required bank to meet new rules in terms of the foreclosure process and this increased regulation is causing banks to move even slower than before as they rethink their business plans oftentimes preferring to do more short sales in lieu of foreclosing and this move have decreased the inventory as many homes will go through 3-4 months of 'short selling' negotiations before a foreclosure is even considered.
Carlsbad builders are doing less building. Look across El Camino Real at Robertson Ranch, those new phases are crawling out a few homes at a time. Carlsbad housing starts were at record lows from 2009 through 2011 so there’s less inventory being added to the market for Carlsbad home buyers. A rebound in Carlsbad's new-home market may be short-lived as the few units that are released are helping the builders maximize interest, sift through the strongest buyers, before committing to building more Carlsbad homes.
That's it for now. If you are working with an inexperienced agent and buying a new home, enjoy!
If you are working with an inexperienced agent and buying a home more than 10 years old, run for the hills and give us a call. In representing more than 43 Carlsbad buyers and sellers, we have only had two buyers/sellers go to short sales and not a single foreclosure - what does this mean? We don't 'sell' you anything, we ensure that you are exposed to and understand Carlsbad real estate values, opportunities and pitfalls. Our family has been representing Carlsbad buyers and sellers full-time, usually 6 days a week, since 1931. Experience counts, don't get burned, don't get sold and give us a call for a one-hour no obligation driving tour of the community/area of your choice, we guarantee you a whole bunch of caffeine that if you aren't impressed with the amount of knowledge you gain from that one hour tour, we'll give a Starbucks card for you valuable time. Go with the winning team, Carlsbad's # 1 agents, Cutter and Chaco Clotfelter, standing by to make sure you win each and every move!
Carlsbad real estate inventories are depressed.
Most Carlsbad sellers are reluctant to sell. When you read that about 22 percent of US home owners with a mortgage are still underwater, owing more than their home is currently worth, it doesn't exactly boost a seller's confidence that they are going to get top dollar or anything even reminiscent of it. The majority of Carlsbad home owners don’t tend to sell unless a life-changing event occurs when they’re underwater because they don’t want to take a loss on the sale of their house. CoreLogic, a highly regarded real estate data firm located in Carlsbad, shows that inventories are the most constrained in areas with the highest number of underwater borrowers.
Most of these potentially distressed mortgages are not padded with enough equity for the Carlsbad real estate owner to trade up: often times, these Carlsbad owners rely on the equity from their home to make a down payment on their next home or what we call their 'up leg' or 'down leg.' With fewer Carlsbad home owners seeing equity in their houses, they may cannot afford to move into a pricier home, which is putting the biggest pressure on “up leg” buyers like me (married with two young kids, always looking for a bigger yard and closer to the action and did I mention world-class schools, and a park down the street...and;)
Institutional, regional and local investorschaco have been crushing the market and pushing Heisman straight-arms out to any and all first, second or third time buyers without a big enough down payment are getting passed over by banks (short sales and foreclosures) for the tried and true system of receiving "all-cash-quick-close" (ACQC© my trademark patent should be back from DC any day now;) offers from these cash-rich players. From 2008-2011, investors were flipping properties but today they are land-banking these homes and sitting on them with a 4-8 year hold strategy. This has had a dramatic impact on the inventory today versus just two years ago when many of these same players were putting the slightly remodeled homes back on the market.
National banks are slowing down Carlsbad foreclosures. The Obama administration has required bank to meet new rules in terms of the foreclosure process and this increased regulation is causing banks to move even slower than before as they rethink their business plans oftentimes preferring to do more short sales in lieu of foreclosing and this move have decreased the inventory as many homes will go through 3-4 months of 'short selling' negotiations before a foreclosure is even considered.
Carlsbad builders are doing less building. Look across El Camino Real at Robertson Ranch, those new phases are crawling out a few homes at a time. Carlsbad housing starts were at record lows from 2009 through 2011 so there’s less inventory being added to the market for Carlsbad home buyers. A rebound in Carlsbad's new-home market may be short-lived as the few units that are released are helping the builders maximize interest, sift through the strongest buyers, before committing to building more Carlsbad homes.
That's it for now. If you are working with an inexperienced agent and buying a new home, enjoy!
If you are working with an inexperienced agent and buying a home more than 10 years old, run for the hills and give us a call. In representing more than 43 Carlsbad buyers and sellers, we have only had two buyers/sellers go to short sales and not a single foreclosure - what does this mean? We don't 'sell' you anything, we ensure that you are exposed to and understand Carlsbad real estate values, opportunities and pitfalls. Our family has been representing Carlsbad buyers and sellers full-time, usually 6 days a week, since 1931. Experience counts, don't get burned, don't get sold and give us a call for a one-hour no obligation driving tour of the community/area of your choice, we guarantee you a whole bunch of caffeine that if you aren't impressed with the amount of knowledge you gain from that one hour tour, we'll give a Starbucks card for you valuable time. Go with the winning team, Carlsbad's # 1 agents, Cutter and Chaco Clotfelter, standing by to make sure you win each and every move!