People wonder about today’s homebuyers – how are they affording these prices?
Most are using a larger down payment.
A check of the tax rolls showed 91 sales of Carlsbad SFRs in May.
Down payments:
All-cash = 9
50-99% = 8
30-49% = 22
21-29% = 11
20% = 21
0-19% = 20
Total = 91
Seventy-one of 91, or 78% of the buyers used at least a 20% down payment.
Hopefully with homeowners having more skin in the game we’ll see more stability in the future.
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Those that were selling were an interesting group:
Bank-owned homes = 19
Sold less than loan amount (non-REO) = 17
These amounted to 40% of the total, and if you take out the ten brand-new homes, 44% of the resales were either bank-owned or short.
Here are a few examples of those that sold:
7332 Circulo Papayo
5 br/4.5 ba, 4,225sf
Fees = $340/mo.
SP: $1,157,500 6/05
SP: $830,000 5/09
This had listed in September for $975,000, and eventually followed the market down. We had seen this one in February – http://www.youtube.com/watch?v=a7tmiDrRj8g
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6836 Citrine
4 br/4.5 ba, 4,913 sf
Fees = $588/mo.
SP: $1,332,000 5/06
SP: $855,000 5/09
This backed to Alicante, the main artery street, and had quite a slope in back. It had a number of offers, and had fallen out of escrow a couple of times – but still sold over the list price of $849,000.
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7153 Tern
4 br/3.5 ba, 3,510sf
Fees = $159/mo.
SP: $1,400,000 4/06
SP: $825,000 5/09
This probably surprised some folks at the bank – they had listed for $929,900 at the end of December, but it didn’t sell until they got the list price down to $829,900. The loans had been $1,260,000.
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3267 Sitio Tortuga
3 br/2.5 ba, 4,053sf
Fees = $446/mo.
LP: $925,000 2/09
SP: $750,000 5/09
KBHome’s model home in the Dolcetto tract in La Costa Ridge. It must have been a long road home, this was built in 2006. Still marked pending too.
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6959 Goldstone
3 br/2.5 ba 2,766sf
Fees = $466
SP: $977,500 5/06 (new)
SP: $725,000 5/09
Another in La Costa Greens that had to be disappointing for the sellers, although this looks like it was a corporate relocation.
Their remarks: WOW! YOU WON’T BELIEVE YOUR EYES JUST REDUCED TO $799,000!!! THIS HOME IS BEAUTIFUL!!!!! Upgrades galore, completely landscaped front & back! Experience La Costa Greens at it’s best! Simply GORGEOUS INSIDE & OUT! Attention to every detail! EXQUISITE limestone, travertine & custom distressed hardwood flooring throughout! FABULOUS relaxing master suite w/retreat room on 1st level, INCREDIBLE 2nd story gameroom! Corporate Owned.
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5450 Los Robles
3 br/2 ba, 2,522 sf
Fees = $0
SP: $625,000 3/02
SP: $1,000,000 5/09
Some ocean view from upstairs in this older (1976) home in Terramar just a block from the beach. This wasn’t on the open market, but the price still feels like retail, and keeps my hopes alive that this neighborhood might survive the coffee bet.
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Of all the 91 reviewed that had previous sales prices from 2002 and 2003, there weren’t any that sold for less than 2003. There also seems to be somewhat of a floor around the FHA limit of $697,500, it’s just a matter of how much house you get, and what location, for $700,000 to $800,000. I think we’ll see many more of the over-4,000sf McMansions slide into this category.
Brand new developments under $200/ft – not bad. Too bad the fees negate some of the discount.
I noticed La Costa Oaks is starting to build up again. ColRich is the builder – anybody heard anything about them?
Having $0 in fees makes up a lot for the higher selling price of the last house.
I assume “fees” means HOA and/or Mello Roos.
I personally would not consider buying a house with these things. I’ll cut the lawn myself thank you very much.
JAP,
You misunderstand. Fees are used to force you to mow your own lawn.
That Goldstone house was on the market forever. Over a year and a half ago it was listed for $965k. I asked the realtor who pointed it out what would be a good offer. Her answer was, “well you don’t want to insult them, so I’d go in at $925k.” To her credit, she was only off by $200k.
“You misunderstand. Fees are used to force you to mow your own lawn.”
Classic! The HOA’s of $200+ at La Costa Ridge are especially ridiculous when you consider there’s no pool or gym. While looking at a house my wife asked what the HOA’s were for then, and the young sales rep just looked confused by the question and said it was normal. We then got in his BMW to head back to the sales office.
I dont mind paying 50 bucks a month in hoa fees to insure the neighborhood is kept up.Helps property values and keeps the rif raf out.200 bucks a month is a joke.do the landscapers have a union yet?
Her answer was, “well you don’t want to insult them, so I’d go in at $925k.” I was told by my agent the same thing. I laugh out load at her it’s business I told her, why would they be insulted I’m not. If the seller doesn’t want to accept an offer they can say no and the buyers moves on. But I will never offer more than I want to pay just to make the seller not feel insulted. Agents are such shills(not you Jim) most of them need to work in a carnival.
And the reason I wouldn’t want to insult sellers who overpriced their home by $200k is…?
Our HOA is $70/mo, goes mostly for watering and clearing common areas and maintaining private roads and a gate. We specifically avoided HOA developments with a lot of “amenities” we knew we’d never use.
“78% of the buyers used at least a 20% down payment.”
Talk about a dagger through the heart. Im beginning to get the feeling that I really have been priced out forever.
haha, Rob Dawg is right on. Ok, so if houses are selling for $700k+ one has to think that there are only so many people who have 20% saved and can afford to finance a $550k mortgage. I would guess there are fewer people than homes available, though prices seem to be quite sticky.
On a different note, why are new listings going with price ranges? What buyer is actually willing to give an offer on a house at the high end of the range? One realtor said it’s marketing technique… I would think the best technique would be to list the lowest price? Maybe I’m living in an alternate universe where this type of tactic works.
I think the main reason for the range is to get it into more computer searches. That is, sometimes people search for, properties under $500k, and sometimes other people search for properties between $550k and $750k. If you set the range from $499.9 to $599.9, it pops up in both searches.
It also seems to mainly be a San Deigo thing; not too common elsewhere.
I checked out the ColRich homes at La Costa Oaks last week and was very impressed. I liked that the HOA at least gets you a community pool. The homes attend La Costa Canyon High which is good. One of the model homes has a sweet ocean view with bifold doors that completely open the living room to the outside. The were listed from $796,000-$865000. The lot size looked pretty good. I think they are worth a look.
when I was shopping the low end foreclosures/short sales in Oceanside, I made several offers at the top of a range pricing, even over the top end, and still lost out to other bidders. I got to the point where I didn’t want to waste my time or my agents by throwing lowball offers out there.
This section of the market is a little different though. I probably wouldn’t recommend offering the top number in a ‘retail’ price range where there is still alot of room to fall.
Walmart is hiring.The recession is officially over.Go buy some stuff this week and keep your neighbor employed.Anyone want to buy a chevy these days?The gubernment is going to be selling cars real soon.They will include one contingency, you must buy a house too.
‘I think the main reason for the range is to get it into more computer searches’
I moved from N. Cal and when I saw VR pricing I about fell out of my chair. If home buyers in S. Cal aren’t smart enough to search, then they certainly aren’t smart enough to figure how much home they can afford.
3clicks, I don’t think anyone really worries about how much they can afford. They simply take out the biggest loan they can get, buy the biggest house they can with it, and literally go for broke.
I dig some of the LC Ridge homes. I’d never pay over $400 a month in a ponzi scheme though.
Genius – kinda like ‘go big or go home’ but without actually having to leave home?
I don’t get HOA fees, unless I’m too old or travel a lot or like today’s pharmacist who suffered a very gracious and minor slip on the tile floor behind the counter, but took 3 minutes to get up because she was overweight. Still $400 +/- in HOA is crazy nonetheless.
Ok, so if houses are selling for $700k+ one has to think that there are only so many people who have 20% saved and can afford to finance a $550k mortgage.
I’d argue that their numbers are very small and dwindling with every sale.
As I’ve stated previously here, the mid-range is all about trade-up equity and (to a lesser extent) interest rates. The first for most people is gone, and the second’s leaving the station as we speak.
Hey Jim,
The newly listed 1500 sqft home on 633 Sonrisa St., Solana Beach, CA 92075 is interesting – original owner from back in the day in ’68 is selling. The asking price is at $482/sq ft west of the 5, but I think the house local is on the up slope and falls short of the crest of the hill so I wouldn’t call it west of the 5. But the house gets me within one click from the beach. I’d like to think they are 100K over list, but its Solana Beach.
I’m pretty surprised at the sale on Los Robles: (1) because it wasn’t on the open market where it might have been bid up and (2) that it did so well ($396/sf). Perhaps the facts are related? The guy that owned that one I’m pretty sure owns two other homes (or more?) in the neighborhood. And there was a lot of upgrading done on that one–pretty sure–after 2002, so the 2002 to 2009 price comparison may not be apples-to-apples.
This sale makes the current listing @5198 Los Robles with the microscopic house at $875K ($879/sf!) look unlikely….
Not to side track, but what are mello roos?
Mello Roos are a local property tax used to pay for improvements. They represent a sort of end run around the limitations placed on property taxes by Proposition 13.
http://en.wikipedia.org/wiki/Mello_Roos
“I don’t get HOA fees, unless I’m too old or travel a lot… Still $400 +/- in HOA is crazy nonetheless”
Then you don’t understand what HOAs are supposed to do. Ours is $550/mo (ouch!) and surely headed up another $50 soon. It sucks, but it pays for a security service that drives through randomly at night, nicely paved roads, a gate and gatehouse, common areas and their maintenance/water, as well as a pretty useless little park.
I hate paying it, but I hate living with neighbors that don’t maintain their homes or yards, have terrible taste in colors/architecture, and do nutty stuff with their landscape.
…”I hate paying it, but I hate living with neighbors that don’t maintain their homes or yards, have terrible taste in colors/architecture, and do nutty stuff with their landscape.”
I hear you. I pay around $80/mo, but we do not have security and a gatehouse. We were very picky where we bought and I have no issues with neighbors that do not maintain their homes and our HOA keeps the colors in check however. That said, it only take one house to ruin the bunch and in this economy it is only a matter until the house of cards fall *fingers crossed*.