The previous video showed how similar homes in La Costa Oaks were selling in a wide range, and being manipulated by one realtor’s fraud and deceit. About a mile away in La Costa Valley, where the inventory has been much tighter and rarely a foreclosure, there’s a different story – even though they are both in the Encinitas/San Dieguito school districts.
The La Costa Oaks REO on Corte Romero in the previous video is 3,465sf, listed for $699,900.
The La Costa Valley regular sale seen below is 2,602sf, listed on the range $795,000 to $825,000.
Both went pending in the first 16 days on the market:
(I was going off memory on the price and sf in the video)
Carlsbad in general seems to be held down due to the overselling in the recent past, currently, and with all that land untouched, in the future.
When I filter out all the higher priced comps I get to a price I like. Works every time.
One huge difference between LCO and LCV is when the houses were sold. LCO was sold at the peak of the bubble so all of the original buyers are underwater. By contrast, LCV was sold much earlier and hence the owners that didn’t cash out refi still have equity.
Perhaps houses are bringing more in LCV because buyers’ perceive the ‘hood to be more stable. While fraud and distress can destroy values in a neighborhood it can also create opportunity for a buyer with a long-term time horizon.
Price can really fluctuate depending on where the house is within a particular subdivision. If you take a look at the active inventory of LCO, you will notice that there has been 4 recent listings ranging in price from $1.2M-2.1M in Col Rich and Davidson areas of LCO. Though I feel these seem to be priced FAR too aggressively, that is quite a range from the $600-700s just down the street! There is one area of LCV near El Camino Real and Calle Barcelona that has heavy power lines and road noise–that area seems to be a tough sell as compared to the rest of LCV.
Local Boy, I would think it would be hard to comp out view homes against their non view neighbors. I know Jim had a 100K premium on views but another way to look at it is what is the alternative choices for that same view. For instance, one side of Stern Way sells for > 2M and the other side of the street, same floor plans, sell for 1M at most. That blows the 100K premium away.
I agree with “May Grey” ,”For instance, one side of Stern Way sells for > 2M and the other side of the street, same floor plans, sell for 1M at most. That blows the 100K premium away”…. “Premium” lots with outstanding ocean/pano views demand at least 500k more.Don’t forget the three most important things. Location,Location,Location!!
A buyer with young kids in South Carlsbad who wants the ultimate looks in La Costa Valley, not La Costa Oaks. That is the difference. Come back on a Friday afternoon once this house has closed and you will see a culdesac full of kids with the parents enjoying a beverage outside in beach chairs. I live two culdesacs over and there are 16 kids under the age of 10! That is why we live here and if had to do it over again would pay more to live here over a larger, newer house in La Costa Oaks.
ps… that seller is moving two streets over (staying in La Costa Valley).
LV Res–The same can be said for San Elijo Hills and look what has happened to the values there. It seems that people who want views and proximity to the High School have preferred LCO–just a thought.
Local Boy:
Good thoughts, but not accurate.
LV in significantly better location than SEH. Not comparable.
Proximity to ECC more important than proximity for LCC for people with young kids <10.
The seller of this house has 3 kids under <10. We'll see, but I would bet the buyer has kids <10, too.
Agreed that you cannot compare their locations, but I wasn’t. I was pointing out that cul-de-sac’s full of kids do not necessarily ensure that a neighborhood’s value will hold-up. Your point for LV holding up was due to its “cul-de-dac’s full of kids.” We have friends in SEH and you should see the amount of kids under 10 on their cul-de-sac (25-30?) and their value has not held-up as well as LV. As we are all aware, many things effect value. For me, I go back to what another blogger pointed out was the timing in which LV was built (02)–people built more equity than LCO (or SEH), rather than the number of kids on the street.
Hey Local Boy,
Just checked back in on this one. My point was LCV has held up better than LO (same school district; relatively the same location) because of the kids. It is an X factor that is often not accounted for significantly enough. It is true that folks have equity, but it is also true that houses sell for much more of a premium in LV because of the X factor (which was the original point of the video – trying to answer the question why the same house for more in LO was not selling as quickly as the one in LCV). It is because the buyers of the LCV house looked at the LO house which was bigger and less expensive in relatively the same location with the same school district and were willing to pay the a premium because of the X factor.