Here are the statistics from North SD County’s Coastal region (La Jolla to Carlsbad), comparing house sales closed between June 1st and August 31.
In some areas, the summer of 2007 was just as hot as the previous year, but for the majority, the highest average pricing was in 2006 – let’s compare it to the summer of 2013 (DOM = average days on market):
| Area or Town | ||||||
| Cardiff | ||||||
| Carlsbad NW | ||||||
| Carlsbad SE | ||||||
| Carlsbad NE | ||||||
| Carlsbad SW | ||||||
| Carmel Valley | ||||||
| Del Mar | ||||||
| Encinitas | ||||||
| La Jolla | ||||||
| RSF | ||||||
| Solana Beach | ||||||
| NSDCC |
In Del Mar and Encinitas, the average cost-per-sf was higher this year than in 2006. Carmel Valley and South Carlsbad were both within 10% too.
Anyone with a pulse could get a mortgage in 2006, yet look at how the number of sales is higher now in almost every area!
We talked yesterday about the average days on market, and whether the faster sales are a result of market efficiency, or outright desperation on behalf of the buyers – it’s probably some of both?
30 year fixed averaged 6.5% in 2006 vs. 4% this past year. That translates to 1/3 more purchasing power, yet prices aren’t 1/3rd higher than 2006… yet.
No, rates were about the same because nobody wanted those ridiculously high fixed rates when you could get 3.95% on something called an option arm.
Buyers didn’t know the difference between an arm or a leg, they just wanted in. Later they found out about the fine print.
you cant go wrong with real estate in the long run.
Excellent point — touche’, Jim!
http://www.bls.gov/data/inflation_calculator.htm
$662 in 2006 dollars is 2013 dollars in $768 dollars so we are still have a little more to go with $705 for Del Mar.
Ah yes, option arms, JtR! I remember years ago a mortgage broker told me how cool they were. “You don’t have to pay all of your mortgage each month if something comes up! You have choices!”
Then she said she it was such a good decision for me to grab one that she said she would give me a $5,000 at closing! I literally shook my head while listening to her sales pitch on the phone, and then after hanging up, laughed at the absurdity.
And today? I have a 4% 30-year fixed. Yeah, I sleep very well at night after putting down (the old-fashioned) 20% down payment…
$662 in 2006 dollars is 2013 dollars in $768 dollars so we are still have a little more to go with $705 for Del Mar.
Still a nice comeback.