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Alessandra, Home Buyer in Carlsbad, CA

Is La Costa considered a declining market ?

Asked by Alessandra, Carlsbad, CA Tue Jan 8, 2008

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Alessandra:

La Costa is generally stable, especially for homes in South La Costa that are in the Encinitas and San Dieguito school districts.

Short sales are starting to appear, though, in homes bought or refinanced with marginal financing in 2005-2006.

To see real time market stats for the La Costa area, just click the link below:
0 votes Thank Flag Link Sat Jan 12, 2008
Roberta Murp…, Real Estate Pro in San Diego, CA
MVP'08
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You don't say why you are interested, Alessandra. Nevertheless Margaret has the best answer. I might add the wisdom of the yacht salesman: If you have to ask, you can't afford it.

People who choose luxury homes generally seem to be better off than the huddled masses. Obvious, but I mean that they tend to have resources far beyond what they might need in an economic downturn. Additionally, they generally have fixed-rate mortgages at low interest rates. If they choose to sell they don't have to desperately grab the first offer, they don't have to compete with foreclosed homes in the neighborhood. Finally, I believe there is more demand for high-end homes than low. Low end buyers are waiting for still lower prices.

I don't expect a significant decline in La Costa.
0 votes Thank Flag Link Wed Jan 9, 2008
From what my lender told me, all of So. Cal except for some places in the OC were ALL declining markets hence the 5% required down from almost all lenders.
0 votes Thank Flag Link Tue Jan 8, 2008
Alessandra, I still feel that LaCosta is a strong area, similar to what Margaret H. has to say. If we had cyrstal balls as realtors, we'd all be the next Donald Trump, but I feel that across the board LaCosta will fair pretty well.

Patti Phillips
800-680-9133
0 votes Thank Flag Link Tue Jan 8, 2008
We don't yet know whether La Costa will have a decline in values over the coming year. On the positive side, there are very few foreclosures and REOs in the area. The foreclosures in the inland part of San Diego (e.g., Escondido) have put tremendous downward pressure on values as the banks wholesale properties to get them off their inventory. Since La Costa is not a cheap area, the owners usually have greater means to sustain a negative financial event and most homeowners have equity in their homes that they are not willing to lose to foreclosure. Having said that, I know of one home in particular in a new part of La Costa that is very likely to be foreclosed on in the next few months, and, of course, the wholesaling of that property will not be good for its neighborhood. I think it is highly unlikely that homes in La Costa show any gains in value this year, so at best it will be flat, and there is the possibility of a small decline. I am somewhat doubtful about any major correction in La Costa, but we won't know until the year unfolds and we see what kind of inventory we have as well as buyer confidence. (If your question is any kind of a guide, it may mean that buyer confidence is still a bit shaky.) I'll see if I can go pull some statistics on what is going on in the different value markets in La Costa.

Margaret Hokkanen
0 votes Thank Flag Link Tue Jan 8, 2008
The link below provides information as to the rating of specific zip codes and is relied on by many major lenders: http://decliningmarkets.gmacrescap.com/
0 votes Thank Flag Link Tue Jan 8, 2008
YES, as far a Fannie Mae and other lender guidelines. Actually, San Diego County as a whole is listed as either declining or severely declining depending on the source. La Costa, however, is still desirable but, not untouched by the current market. Still a good place to be and hold for the long run.
0 votes Thank Flag Link Tue Jan 8, 2008
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