Mewborn Team Real Estate Consultants: CoastalLuxurySanDiego.com

August 22nd, 2009

Are You Considering Downsizing?

Categories: Buyers, Carlsbad, Market Trends, Relocation, Sellers

Carlsbad, Ca – According to the US Census Bureau, for the first time since 1994 – the average home size dropped. Home size actually went down by almost 7%.

There are many possible reasons for smaller homes:
1. Aging boomers: As people are living longer, more Carlsbad couples are selling the big houses in favor of a smaller, single story home with less yard (and maintenance). We are finding that La Costa and Carlsbad single story homes are often on the market for a fraction of the time as a similar square footage two-story. The demand for these homes are increasing dramatically! Also as baby boomers are becoming empty nesters, many are choosing to trade in their big home for an RV or more vacations.

2. Affordability – We often find that Carlsbad real estate buyers stretch to buy the biggest, best house they can afford. In times of economic distress – layoffs, declining property values, decreasing wages, people just can’t afford the big house any more. Factor in increases in San Diego energy and water costs, more homeowners are realizing that maybe they need to revisit their monthly housing expenses.

3. Tight credit markets – Any loan above $417k is still a jumbo loan. Even though homes within the expanded limits are often called high balance conforming loans – these and other jumbo mortgages are harder (and more expensive) to get. As Carlsbad interest rates rise, home buyers will be able to afford less and less.

If you have any questions Carlsbad, Oceanside, Encinitas, and other north county coastal San Diego real estate or mortgage topics, please contact us. We are always happy to answer your questions.

Tags: Carlsbad, La Costa

Posted by Mike and Amy Mewborn//