It gets mentioned regularly how the demographics don’t support the housing prices around here. It makes you wonder, how can so many expensive homes keep selling when the San Diego median income is around $60,000 – doesn’t something have to give?
We’ve seen it consistently over the last year or two – buyers are utilizing bigger down payments to keep the monthly payments down.
Here’s how the SFRs that sold in October were financed in three mid-range areas of the North SD County Coastal region – from the tax rolls:
| Area or Town | Zero Down | FHA | 5-19% | 20%-25% | 30%-49% | 50%+ | Cash | SP=$1M+ |
| Carlsbad SE | ||||||||
| Encinitas | ||||||||
| Carmel Vly | ||||||||
| Totals |
Sixty percent of the buyers used at least a 30% down payment, and only 6 FHA deals. It lends more credence to the haves vs. havenots theory – those with ample firepower are buying, with many paying quite a bit more than those who may qualify, but are more frugal.
The three low-down sales in Carmel Valley (2 FHA, one 100% fin) were all at Manzanita Trail. Not surprised to hear that the new-tract lender is finding every available opportunity to assist with sales.
