Archive for the 'Carlsbad City' Category
“Old” Carlsbad positively leads the cities housing market
September 14th, 2008 Categories: Carlsbad Business Community, Carlsbad City, Carlsbad Real Estate, Carlsbad South, Carlsbad Village, Carlsbad schools
CARLSBAD-Of Carlsbad’s four zip codes, 92008, 92009, 92010 and92011, the best real estate data are coming from the “old” area of the city.
The San Diego Union Tribune reported on data from DataQuick this weekend that approximately two-thirds of sellers lost money when selling their home.
For Carlsbad, the 92008 “village” zip code had the lowest rate of homes sold for a loss in the city and was in the top 6 for the entire county. From June 22 through August 22, there was a total of 40 transactions of which 10 were for a loss. Additionally, when looking at detached homes, 92008 has the second best affordabilty of 15% which is double from its last year mark of 7%.
Turning our attention towards 92010, in the same data used revealed that the 92010 had the lowest difference on median price from previous sale of 6.9%. This is also the fifth lowest for the entire county. To put this number in perspective, the area hardest hit, Golden Hills, had a median loss of 55% which translates to a return of only $45,000 for every $100,000 in initial purchase price. The other areas of Carlsbad saw approximately twice as much loss at approximately 13.7%.
In more good news for the area, 92010 maintains its position as the most affordable area of the city at 16% for detached homes and just over 26% 
when combined with attached homes.
The 92011 zip code was not included in the article. The study was done on zip codes wth 10 or more transactions during this two month period and with 60 closed transactions, 92011 should have been included. I have contacted the author to see if I could get an explanation.
Contact me any time, I am here to help.
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Carlsbad home buyers… let do this!!!
September 9th, 2008 Categories: Carlsbad Business Community, Carlsbad City, Carlsbad Real Estate
CARLSBAD– As most everyone knows by now, on Sunday, the federal government put both Fannie Mae and Freddie Mac in to conservatorship.
Placing the companies in conservatorship, rather than receivership, could signal that the government does not intend to nationalize or liquidate Fannie Mae and Freddie Mac. Instead, under the terms of a federal law passed this summer, conservatorship is designed to allow the government to restructure the companies and return them to private control. Treasury officials have previously compared the process to Chapter 11 bankruptcy.-Seeking Alpha, 9/6/2008
So what does this mean to Carlsbad’s current and potential homeowners?
There are two primary impacts to our housing market.
Firstly, for existing homeowners, interest rates have already started to fall on fixed rate loans and are expected to continue trending downward for the next 3–6 months. This is great news for homeowners with loans that have rate adjustments coming in the future. However, being realistic, the changes in loan program, new qualifying guidelines and loss of equity, are 
going to be factors limiting the number of homeowners that can take advantage of this.
Secondly, for potential buyers and sellers, more importantly is the cause of the lower interest.
The reason rates have already gone down, currently at 5.88% down from 6.26% last week, is the potential for a large and consistent infusion of cash in to the mortgage market from the government. This infusion will ‘loosen’ the flow money which should help lower underwriting standards.(Isn’t this how we got into this predicament in the first place?)
The government hopes that loosening the purse strings will prompt lenders to lower underwriting standards and ease the credit crunch that has kept many potential home buyers on the sidelines.-San Diego Union Tribune,9/9/2008
With the significant drop in home pricing and our market’s high inventory, if you have been waiting to purchase, I would give serious consideration to the current market. Your new home is waiting for you and remember, if you are renting, you are buying a home. Just not yours.
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Hey Carlsbad, get your FREE TREES!!!
September 3rd, 2008 Categories: Carlsbad City, Carlsbad Outdoor Events
CARLSBAD– What does a New Zealand Christmas, a Chinese Flame and a London Plane have in common? They are three of the up to 19 varieties of shade trees available for free from the California Center for Sustainable Energy Cool Communities Shade Tree Program. This program is now in jeopardy due to a loss of funding.
Started in 2002, the shade tree program was designed to provide homeowners with free trees to plant strategically on their property. With proper placement, homeowners could save energy by using shade trees to help keep their homes cool in San Diego’s year round summers. An added benefit of course is that trees help beautify the homes and help our environment. Since the programs inception over 36,000 trees have been distributed.
Prior to 2006, the program had been funded by the California Public Utilities 
Commission with funds collected for the public purpose program charge. This charge is tied to to our SDGE based on natural gas usage. While the monies will still be collected, it is the shift in oversight of the funds to SDGE that has caused the program to loss its funding. SDGE is looking to use the funds for more immediate energy efficiency benefits.
“It’s a great program,” said Brian Jordan, who has received about 10 trees for his Carlsbad property since 2003. “We live in a concrete jungle. A lot of neighborhoods around San Diego County could use trees, just for aesthetic appeal.” – San Diego Union Tribune, 9/2/2008
The program is funded through 2008 and unless new funding is found, it will most likely be terminated then. Here’s your chance to beautify your home, neighborhood, save energy and help the environment all at once.. FOR FREE!!
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Carlsbad’s desalination plant unanimously approved
August 23rd, 2008 Categories: Carlsbad Business Community, Carlsbad City, Carlsbad Outdoor Events, Carlsbad Real Estate
CARLSBAD– The States Land Commission unanimously approved the desalination project slated to be built on the Encina power plant site in Carlsbad. This was the final regulatory approval the project needed in order to start construction next year with the goal of water production starting in 2011.
The plant, which will produce about 50 million gallons of freshwater from 200 million gallons, will be the largest desalination in the western hemisphere according to Reuters.
With the Carlsbad project receiving final approval, this helps clear the way for approval of approximately 20 other desalination project proposed for the California coast.
Earlier this week the first of what will probably be several legal challenges was rejected by the State Water Resources Control Board. The suit filed by the Surfrider Foundation said plans to minimize environmental damage the plant would cause were 
insufficient.
The Coastal Commission also this month approved a second plant to be built on the Monterey Peninsula to provide water for a development near Cannery Row. This plant is much smaller and will produce about 25,000 a day.
While I believe these projects are necessary and I support the idea, I fear not much good will actually come from them if they are tied to development such as the Monterey project. We need new water sources to help meet our current needs. This is evident by the state’s current drought situation.
“It is easy for Sacramento to put off dealing with the water infrastructure,” Schwarzenegger said. “But as we now see, there is no more time to waste, because nothing is more vital than to protect our economy, to protect our environment, and to protect our quality of life.” -CNN.com, June, 5, 2008
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NORTH COUNTY HOME SALES TURN SKYWARD IN JULY!!!!
August 14th, 2008 Categories: Carlsbad City, Carlsbad Real Estate
CARLSBAD– I REALLY like the North County Times. No REALLY like the North County Times. See instead of creating a catching headline and article bent on the negative side of our current real estate market, they saw the bright side. The old ‘glass half full’!!!
In Tuesday’s edition of the paper, the headline read, “Area home sales jump”, and the accompanying article and chart broke it all down for us.
“Sales leaped 22 percent from the same time a year ago, the first substantial increase in sales since purchases tanked in 2006.”– North County Times, 8/13/2008
Now, I REALLY like the North County Times, and we sure could use some good news, but these jumps in numbers were not across the board.
Areas jump, while Carlsbad’s housing sales flop
Two of the three zip codes, 92083, 92084 and 92027, that saw the biggest gains, 525%, 214% and 211%, had median home sales of less than $275,000. In fact these areas, Vista and Escondido, saw all there zip codes 
make huge sales improvements.
Unfortunately, Carlsbad’s best change was 0% percent for 92009. The other three zip codes saw negative change of 18, 27 and 33 percent. Carlsbad most affordable zip code, 92010, saw the least negative change of 18%.
While the magic number seemed to be $350,000, as every zip code at or below that number saw improvement, the big number for Carlsbad seems to be $500,000, as there now are 26 single family detached homes for sale at or below that price point. A year ago this would not be the case. To take advantage of the current market, contact Brian Long for more information or further assistance.
To see all the data, click on the chart pictured. Also, if you are considering buying or selling contact your Carlsbad realtor Brian Long here.
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Carlsbad builder losing both affordable and luxury projects?
August 12th, 2008 Categories: Carlsbad Business Community, Carlsbad City, Carlsbad Real Estate
SAN DIEGO– This weekend, The North County Times reported that Carlsbad based Barrat America was close to losing its City Square project in Escondido. This once award winning project, that in August of 2007 was reported to be ‘debunking market trends’, was suppose to help anchor a revitalized and modern downtown.
City Square’s failure stems from Bank of America’s decision to freeze Barratt’s $125 million credit line, Pattinson(Barratt America CEO) said. He also questioned the bank’s motives, saying it is not interested in exploring workable solutions, such as extending the life of a loan.-North County Times, 8/10/2008
However, while in October of 2007, Barratt was announcing winning awards at one project, they apparently were not paying their sub-contractors. The NC Times article also reported that since November of 2007, 80 civil lawsuits have been filed against Barratt America and most of those have been filed by unpaid sub-contractors.
The luxury community additionally effected is Carlsbad’s Magnolia Estates. 
While looking through SANDICOR, San Diego’s MLS, for foreclosure activity, it seems as though the whole of Magnolia Estates is facing foreclosure proceedings and have lawsuits attached to them, presumably from the subcontractors looking to get paid.
Hopefully Barratt America, which has reportedly laid off 100 of its 130 employees, will be able to find new financing or work out a solution with Bank of America as neither city benefits from the blight, whether townhomes or luxury homes, decaying uninhabited.
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Carlsbad desalination plant gets coastal commission approval
August 6th, 2008 Categories: Carlsbad Beaches, Carlsbad Business Community, Carlsbad City
CARLSBAD– After a 10+ hour meeting today held at Oceanside city hall, the California coastal commission gave final approval to the desalination plant that was proposed to be built on the Encinas power plant site.
The plant will produce approximately 50 million gallons of freshwater a day from 100 million gallons of seawater. The plant will actually pump in excess of 300 million, what is is not sent through the reverse osmosis process is used to dilute the brine left over from the 
process.
To offset damage to marine life from the plant operation there will be 55.4 acre habitat restoration site to be built in two phases. One the size of Poseidon’s proposed 37 acres in the first two years and then an additional 18.4 acres added within the next five years.
With regard to a carbon offsets requirement, Poseidon stated that they will use as much solar power as possible. Also, there may be an actual energy usage reduction if you take in to account that pumps, theoretically, will no longer be necessary to bring 50 million gallons of water to San Diego daily from northern Caliornia.
The project will now go to theCalifornia State Lands commission which meets August 22nd in Los Angeles. If approved there, construction on the project should begin in mid 2009.
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Mayor’s back Carlsbad Desal Plant
August 2nd, 2008 Categories: Carlsbad Business Community, Carlsbad City, Carlsbad Outdoor Events
CARLSBAD– Seven regional Mayors, including Carlsbad’s Bud Lewis, got together and held a news conference Friday to ask the California Coastal Commission to finalize the conditional permit it approved in November of 2007 for the Carlsbad desalinization plant. The plant would be built on the site of the current Encinas power plant which I have written about here and here.
Funny thing, but in one of the posts I have linked above I stated that, while I think the plant needs to be built, it will create an attitude in city government that the Pacific Ocean is an unlimited supply of fresh water and in turn this philosophy will fuel continued area population expansion. Well, that and an economic turnaround.
“First, more building will take place because the thought that the Pacific Ocean is huge and we can always build another plant will permeate the governmental minds.”– Brian Long, 11/18/2007
Well how about this quote from Jerry Sanders from the San Diego Union Tribune article dated 8/1/2007.
“Seawater desalination will provide a drought-proof water supply,” Sanders said
NICE!!!
The commission will be meeting this Wednesday, 9:00 at Oceanside City Hall which is located at 300 N. Coast Highway. I would be VERY surprised if this did not get approved. Besides the water it will add much needed jobs and dollars to our community.
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How the housing bill may effect Carlsbad’s real estate market
July 28th, 2008 Categories: Carlsbad City, Carlsbad Real Estate
CARLSBAD– Well congress pulled a weekend session and passed the housing bill intended to buoy our sinking housing market. President Bush has already indicated he would in turn sign this in to law. I have been asked by quite a few people what I thought about the bill over the last several weeks, but have withheld any real opinion until I could read more about it and digest that information. So here are my thoughts.
Probably the real impact of the bill nationwide will be the portion that allows the FHA to insure and help refinance, into fixed rate, some 400,000 loans for homeowners that are in some part of the foreclosure process. Two things here however. The homeowners would have to show that they can indeed afford the payment and the banks would have to accept any loss. The problem I see with this is that most of these homeowners will not be able to afford the new payment especially if 
they got loans based on stated income or had a change in their ‘economic’ picture such as disability, loss of job, taking on more consumer debt, etc. Additionally, there is a clause in the bill that protects lenders from investor lawsuits over loss revenue caused from restructuring loans. This is probably the most beneficial to the consumer group as a whole of this portion.
The 3.9 billion earmarked for buying and or maintaining/ rehabing foreclosed homes will go to companies with government ties so I really don’t see this as being very beneficial to the populous. This will benefit some companies with the right connections and quite honestly I just see opportunity for abuse. Hopefully the money will go to housing non profits that have a strong history of benefiting the community. Did you read about the Iraq prison in todays paper?
Now the 15 billion earmarked for housing tax breaks will help quite with a tax credit up to 10% of the purchase price up to 
$7500. In order to earn this credit, the home purchase must fall between April 9, 2008 and July 1, 2009. However, from what I have been able to find this is a credit for low income and first time buyers only. Additionally, this credit will have to be paid back in equal payments over 15 years. So this really is 0% loan. Also, as with most everything associated with tax filings there are income restrictions.
What I believe will have the greatest impact on Carlsbad’s real estate 
market is the provision that makes the increase in the loan amount the FHA can insure permanent. Currently the FHA can insure loans up to $625,000 in high cost market areas. This amount used to be $417,000 and was set to revert back at the end of the year. Why this is important to us, is that the borrower can get a more favorable because of the assurance to cover the loan from the FHA. In July the average single family home sold in the combined zip codes of Carlsbad was over $730,000, so this is very important to us.
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Carlsbad’s Alga Norte park placed on hold…. again
July 24th, 2008 Categories: Carlsbad 'best of', Carlsbad Business Community, Carlsbad City, Carlsbad Community Events, Carlsbad Outdoor Events, Carlsbad Real Estate
CARLSBAD– The Alga Norte Park project has been delayed yet again. This time the council in a 4–1 vote decided it was prudent to wait for the state to produce a signed budget. The state’s budget can have a significant impact on revenue to the city’s.
However in a surprise to me and probably many others, San Diego county assessor Gregory Smith announced that assessed property values in San Diego were up 4.8% to 409.3 billion. This is more than double the value in 2000.
After building what is believed to be the most expensive municipal golf course in the country, the city council owes the average citizen of Carlsbad this park. It has been promised for over 4 years and is in the budget as noted by Councilwoman Ann Kulchin, the lone dissenting vote. This project would have the most SIGNIFICANT impact on citizens of all economic class not just those that can afford $60–80 dollar green fees.
Kulchin said the city has promised its residents for years that it would build the park’s proposed swim complex and that it should go ahead and obtain the construction bids while waiting for news about the state budget situation.
“This is in our budget,” she said of the money for the construction work. “We promised- and I think this is the time. We can’t just keep putting off, putting off.”– North County Times, July 22, 2008
I love Carlsbad and generally feel that the council does a great job, but they have lost site of what it means to serve. If the increasing costs was received as ‘unpleasant news’ in 2006, it will not get any better the more time that elapses before the bid process.
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