The Price of Perfection:

Sales Statistics for the Luxury Home Market in Carlsbad

Sales volume of luxury homes in Carlsbad (homes priced over $1,000,000) has dropped significantly from 2007 to 2008 – over 43%. Yet despite the reduction in the number of homes sold, the average sales price, and sold price per square foot, has held steady with only a small reduction from 2007 to 2008. While the market is holding up so far, the big question is whether this can be sustained. There are currently 175 luxury homes on the market in Carlsbad, which equates to over 12 months of inventory. And when inventory levels get this high it normally means prices will soften.

The good news, however, is that current ‘pending’ sales are at a healthy clip (24), which points to a possible uptick in next month’s sales volume. Another positive trend is that interest rates have remained relatively stable even in the face of tremendous upheaval in the financial markets. With the government stepping in to provide some stability, we could see better sales volume in the near future, including the luxury market.