“How is the market doing?” This is the most frequently asked question I receive. Neighbors, friends, clients all want to know what is going on in the market. Here in North San Diego the market is doing quite well, actually, and things seem to be picking up.

The HomeDex statistics show that while inventory levels in San Diego county declined in February (slightly over 12.5%), both pending and sold numbers were up. Pending property numbers rose for the second month in a row. Prices have dropped a bit as well, with both single family homes and condos showing lower median prices than the same time last year (2.2% drop in median price from the same time last year for single family homes, 10.2% for condos). Heading into the spring and summer buying seasons this is good news for buyers, and if the inventory picks up it will continue to be a strong buyer’s market.

The one thing we have seen quite a bit of is cash buyers. In February these buyers accounted for 33% of existing home sales, while first time buyers accounted for 34%, according to the National Association of Realtors. Some cash buyers are investors and others are purchasing first or second properties, but all in all there is a rise in these transactions.

Another thing that seems to be on the increase is the number of buyers from out of the country. According to the National Association of Realtors 28% of U.S. Realtors have reported working with at least one foreign buyer in 2010, an increase from 23% in 2009. Reports indicate that Asian buyers are still active in the market, and recently one report said that Israelis are snatching up commercial real estate in the U.S. I have buyers from Australia and Asia right now, so I agree with the reports that there is an influx of out of area buyers.

The dollar is weak in the U.S. compared to other currencies, so now is the ideal time for people to buy. It will be interesting to see whether the disasters in Japan have an effect on Japanese buyers. For many of these buyers our real estate is inexpensive. In fact, one person I know told me that the price per square foot in China in the cities is about $600, so our real estate here is a great buy to those who have the opportunity.

San Diego county is one of the top-rated tourist destinations in the country. Our beautiful weather and coastal, outdoor lifestyle are the envy of many, and if you are in the market to purchase property there is no time like the present.

In case you were wondering, or if you have been sitting on the sidelines waiting to purchase a home in San Diego county, here is some fantastic news: housing affordability in San Diego reached a record high last quarter. Combined with other factors, it is an ideal time for buyers right now in San Diego, especially first-time buyers.

According to data published in the San Diego Union Tribune, 62% of first time homebuyers can afford to purchase a home in the county, the highest percentage going back to 2000. Affordability has tripled since 2006, when it was at an all-time low. Other factors come into play making the timing ripe for buying.

Interest rates, while estimated to climb slightly this year, still are at an all-time low. Even if rates climb a point this year they will still be at historically low levels.

Inventory will likely rise heading into the Spring selling season, although we are still at low levels comparatively speaking. Homes that are already on the market will have more competition with inventory increases, making it a great time to negotiate with those sellers. I have seen a rise in inventory in the last month alone along the north county coast, and overall most sellers are listing their properties comparably.

Short sales and REOs (lender-owned inventory) make for great negotiation possibilities, as long as a buyer is willing to wait a while when considering a short sale. I also see lenders making a return to the market, which is a good sign for housing, but could be competition for buyers as more well-priced inventory makes it’s way to the market.

Loan Products give first-time buyers choices and can make a big difference in the down payment and affordability factor. FHA loans, for example, only require a small down payment, and is a fantastic product for those who qualify otherwise but do not have 20% of the purchase price laying around in a bank account. This reason alone is one of the strongest in the affordability equation for first-time buyers. As long as the buyer has a job and is not self-employed an FHA loan could be a good choice.

Rent increases. Rents have risen across the country and in San Diego county lately, and renting and buying are getting closer from a cost-perspective. This Fall rent increases ranged from 1% to just under 4.5% in the county, leading to more vacancies as well (many people are moving to the outskirts of the county in search of cheaper rents). For many first-time home buyers who do the math it can be enlightening– so if you are still not sure about a home purchase look at the numbers and see if it makes sense for you.

Realtors have been saying for some time that now is a great time to buy, mostly because of the theory that buying when in a down or slow market is a strong financial tactic. But the above points show that there are many factors in play that make this a great time to buy. If you need further information on the local North San Diego market please do not hesitate to contact me.

Here are the home sale statistics for this week in Carlsbad, CA. You can click on “Live Market Data” above to see other North County sales statistics, and also to sign up to receive these every week. If you need statistics from another San Diego city that is not provided on my website, please let me know and I will sign you up to receive those on a weekly basis.

The first chart is for single family detached homes, the second for condos.

Here are the median home prices for this week in Carlsbad.

Single Family Homes

Attached Homes:

People always ask me how the real estate market is doing. It’s not easy to give a quick answer, so I usually say something like, “we have had some tough times but prices seems to have stabilized in North San Diego, and have even slightly increased in some areas.” The fact of the matter is that there are still lots of buyers out there, they are looking for the right home; there are some great buys out there waiting, if you are ready for negotiating and possibly a long escrow (think short sales and REO properties, or different types of loans). I couldn’t believe how many people called me the last few days of escrow on my last listing, wanting to get in to write back-up offers.

In my efforts to remain upbeat but present an accurate version of the state of the market, here is what I have, in a nutshell:

1. May sales were up in San Diego county, June sales dropped a bit, but prices continued to rise. San Diego was the only metro area in the country with 13 months of consecutive home price increases (placing second only to San Francisco).

2. The median price of a home in California increased 13.6% in June.

3. The number of foreclosed homes nationwide has fallen for the third consecutive month (but the numbers are still high historically speaking)

4. Lenders are still being very tough on potential buyers, so be prepared for an extended escrow (a few days to weeks), even if you are golden on paper.

5. There are still some great deals out there, especially with short sale properties, if you are not in a hurry.

6. There is still lower-than-usual inventory in North San Diego right now (although it is technically rising slightly), with many properties having been on the market a while or having fallen out of escrow. I see this as an opportunity…in fact I have personally had my eye on a property that has fallen out of escrow and reduced a few times.

So, what does all this mean? I really try not to read too much into statistics, as often they do not reflect my specific market. I also don’t place too much on analysts’ takes on the market as, again, they often focus on the big picture and not my little niche in the market. Not to mention you can make yourself crazy trying to crunch all the numbers and decipher all the opinions. I usually stick to my instincts, but being that I have a foot in the market so to speak, those instincts are buffered by what I see on a daily basis in my own market. So, I will end with the cliche that many agents spew, however note that this is based on what I see as truths: numbers, buyers out in the market, inventory (or lack thereof), price reductions in my own area, and of course, the good old instincts: NOW IS A GOOD TIME TO BUY REAL ESTATE IN SAN DIEGO COUNTY. You have to form your own opinion, but there is mine in case you wondered.

How great is Carlsbad? I know I say this all the time, but I really mean it! If you are looking for some fun things to do this summer and want to save some money, check out what is going on for free!

2010 TGIF Jazz in the Park Concert Series

These concerts are always a blast…grab a picnic dinner and some blankets and enjoy our beautiful summer weather with free live jazz music. All concerts are from 6:00-8:00 p.m. For more information call 760-434-2904.

June 25, July 2, July 9: Stagecoach Park, 3420 Camino de las Coaches.

July16, 23, 30: Poinsettia Park, 6600 Hidden Valley Road.

August 6, 13, 20: Calavera Hills Park, 2997 Glasglow Drive.

Other Summer Events (the following is copied directly from the city’s website)

Carlsbad City Library’s Summer Reading Programs for Babies, Children, Teens and Adults
June 21-Aug. 6
Programming times vary
760-602-2047 or 760-602-2038
Spend summer adrift in books at the library’s annual summer reading program. Enjoy activities, reading incentives and entertainment.

Community Health and Fitness Expo
July 10, 10 a.m.-3 p.m.
Westfield Plaza Camino Real
760-602-7519
Enjoy shopping, music, seminars/workshops, and fun activities for the whole family the day before the Carlsbad Triathlon.

Carlsbad Triathlon
July 11, 8 a.m.
Carlsbad State Beach (at Tamarack)
760-602-7519
Come cheer on elite athletes and beginners at one of the top five triathlons in the world, brought to you by the City of Carlsbad.

Portraits from the Golden Age of Jazz: Photographs by William P. Gottlieb
July 11-Aug. 29
William D. Cannon Art Gallery
Marvel at Gottlieb’s images of jazz greats, including Duke Ellington, Charlie Parker, Billie Holiday and Frank Sinatra. A special 25th anniversary selection of TGIF Jazz concert photography will be on display, too. Special opening day activities on Saturday, July 11: Lecture by jazz historian Dirk Sutro at 4 p.m. and public reception sponsored by the Carlsbad Friends of the Arts from 5 to 7 p.m.

Family Open Studios
July 17, 11 a.m.-2 p.m.
Batiquitos Lagoon Nature Center (off of Gabbiano Lane)
760-434-2904
An array of fun outdoor arts and nature activities have been designed for all ages to take advantage of the lagoon’s natural beauty.

Library Summer Concert
July 25, 2 p.m.
Georgina Cole Library
760-602-2026
This free concert features Nathan McEuen and Scott Gates performing bluegrass/Americana folk rock. Seating is limited and first come, first served.

Family Open Studios Plus with Classics 4 Kids
Aug. 14, 11 a.m. to 2 p.m.
Carlsbad City Library (Dove Lane)
760-602-2021
Family Open Studios expands to include an appearance of the Classics 4 Kids’ Jazz Ensemble, celebrating the 25th anniversary of the TGIF Jazz in the Parks concert series.

Dates and times may change. For a complete calendar of events, times and locations, visit http://www.carlsbadca.gov.

Enjoy!

The City of Carlsbad welcomes it’s new police chief, Gary W. Morrison, who will begin his new role June 1, replacing retiring Chief Tom Zoll. Morrison is a highly qualified police veteran, with 22 years of experience working in the law enforcement field and an expansive resume.

Residents can come out to welcome Chief Morrison at the swearing in ceremony and reception on June 1 from 3:00-5:00. The reception will be held at the Faraday Center, 1635 Faraday Avenue.

The City of Carlsbad continuously ranks it’s police department favorably, from keeping crime rates low to quick response times, and the men and women who work for the department are a big part of what make our city special. Make sure to give a warm welcome to their new leader and to thank them next time you see them!

Can you feel it? It is beginning to feel like Spring in Carlsbad. The Flower Fields are in full, glorious bloom, birds are singing and the trees and hills are vibrant shades of green. We are in for a really treat for the senses over the next few months thanks to the winter rainfall. So grab your sunscreen and hat and get outside! There are a lot of outdoor opportunities in April and May to help keep Carlsbad beautiful–here are the highlights:

April 10: Trail clean-up at Lake Calavera. Meet at the lake from 8:30-11:30 to help with trail maintenance and beautification. For more information contact Gary Hill at 760-727-5764. The second Saturday of each month is trail cleanup day, with a focus on a different area each time. Check the city’s website for more information at http://www.carlsbadca.gov/services/departments/parksandrec/trails/events/Pages/default.aspx

April 17: Batiquitos Lagoon Cleanup. The Batiquitos Lagoon Nature Center holds a trail cleanup day the first and third Saturday of every month, beginning at 9:00. It usually wraps up around noon. For more information please visit http://www.batiquitosfoundation.org/newsite/index.php, or call the Nature Center at 760931-0800.

April 24: Arbor Day Celebration at Aviara Community Park. Join the fun and help plant trees in celebration of Arbor Day. Registration begins at 8:30 and volunteers must bring a complete volunteer application, which can be downloaded at http://www.carlsbadca.gov/services/departments/parksandrec/Pages/arbor-day.aspx. Volunteers will also aid in park cleanup and maintenance. Various experts will be on hand to provide information on trees and tree maintenance. Tools are provided but volunteers are encouraged to bring shovels, work gloves and hats.

May 1: Carlsbad Beach Fest. The third annual Carlsbad Beach Fest will be held May 1 from 11:00-3:00 at Frazee Beach. This is a great event way for residents to learn how to preserve our local beaches. Aside from assisting with beach cleanup, there are local companies present to help educate the public about what efforts and programs are needed to help preserve the coastal environment–from recycling to water quality to local wildlife preservation. Help make a difference here in Carlsbad! For more information please visit http://carlsbadbeachfest.com/.

All of the above events present great opportunities for adults and children to contribute to the community, make a difference, and keep Carlsbad gorgeous!

Thanks to an a combination of state and federal laws, you could be eligible for up to $18,000 in tax credits if you are a first time homebuyer, or up to $16,500 if you are a non-first time buyer and meet the requirements. But this is only available for a limited time, so if you are in the market to purchase real estate there has never been a better time. Here are the basic requirements for the tax credit programs:

First time home buyers–dual credits:

1. Purchase must be of principal place of residence

2. Escrow must close between May 1, 2010 and June 30, 2010

3. Up to $10,000 tax credit to first time homebuyers under new California law and up to $8,000 credit under federal law

Purchasers of New Homes (Never Been Occupied):

1. Property must be principal place of residence

2. Can be first time or non-first time buyer

3. Up to $10,000 under California law

New California Law:

1. Applies to purchases that close on or after May 1, 2010

2. Must be first time homebuyer or purchaser of new construction (never been occupied home)

3. Up to $10,000 tax credit

4. Must remain in home at least 2 years post sale or pay back money

To make sure you meet all the eligibility requirements, purchase price restrictions, other restrictions and time frames, please visit http://www.car.org/legal/legal-questions-answers/2010-qa/homebuyer-tax-credit-2010/ for a tax credit chart detailing both the Federal and state initiatives.

You can visit the following sites: IRS– http://www.irs.gov/newsroom/article/0,,id=204671,00.html.

California Franchise Tax Board: http://www.ftb.ca.gov/individuals/New_Home_Credit.shtml.

Happy hunting!

On Saturday, April 17 from 9:00 a.m. to 1:00 p.m., the City of Carlsbad is hosting a free hazardous waste drop off program. In order to participate you must be a resident of Carlsbad (with proof of residency), and must make an appointment beginning March 29. To do so please visit http://www.carlsbadca.gov, or call the appointment line at 760-602-7559.

The event will be held at the corner of Orion Way and Impala Drive, and residents may drop off only one carload of waste per scheduled appointment (up to 15 gallons or 125 pounds). If you have more than this you will need to make an additional appointment so as to comply with hazardous waste disposal transport laws (there is a limit as to how much of these substances you can carry in your vehicle).

Acceptable waste includes paint, pesticides and other household cleaners. For a complete list you may visit the City’s website. There are also year-round free drop off centers, one in Vista and one in Oceanside, for your convenience. Addresses and dates are also available on the website.

This is just another way the City of Carlsbad helps it’s residents, and makes Carlsbad a FANTASTIC place to live, work and play!