Peak Pricing Vs. Now

by | Sep 21, 2013 | Jim's Take on the Market, North County Coastal, Sales and Price Check | 7 comments

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
2006#
Avg $/sf
DOM
2013#
Avg $/sf
DOM
Cardiff
20
$581
49
26
$519
45
Carlsbad NW
43
$437
77
57
$378
35
Carlsbad SE
126
$319
58
188
$300
28
Carlsbad NE
35
$322
65
34
$282
34
Carlsbad SW
58
$357
55
85
$327
32
Carmel Valley
116
$390
58
148
$373
28
Del Mar
36
$662
61
60
$705
40
Encinitas
115
$431
57
150
$453
32
La Jolla
73
$856
72
91
$704
45
RSF
75
$680
108
82
$488
91
Solana Beach
21
$640
52
29
$558
43
NSDCC
718
$484
66
950
$436
38

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?

7 Comments

  1. tj & the bear
    tj & the bear on September 21, 2013 at 12:52 pm

    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.

  2. Jim the Realtor
    Jim the Realtor on September 21, 2013 at 12:58 pm

    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.

  3. avgjoe
    avgjoe on September 21, 2013 at 2:43 pm

    you cant go wrong with real estate in the long run.

  4. tj & the bear
    tj & the bear on September 21, 2013 at 3:08 pm

    Excellent point — touche’, Jim!

  6. Susie
    Susie on September 21, 2013 at 11:26 pm

    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…

  7. Jim the Realtor
    Jim the Realtor on September 22, 2013 at 7:56 am

    $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.

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