According to Standard & Poor’s/Case Shiller Home Price Index real estate prices in the greater San Diego area rose by 5.9% year on year in August as home prices continued to grow.
In one beachside community however, prices have recently declined by 1.7% compared to the previous quarter. The median sales price of a home in Carlsbad was $715,000 in the third quarter. Carlsbad is a very popular tourist destination and is home to the Legoland California Resort. With a nickname of “The Village by the Sea”, Carlsbad benefits from mild temperatures. According to the article in MarketWatch.com, one neighborhood in the northern beachside community is officially classified as being hot. This area has a ZIP Code of 92010 and is the community east of Interstate 5 and north of Palomar airport.
In the summer this area was identified by realtor.com as being one of the 10 hottest real estate ZIP Codes in the country as supply and demand is high. In addition the website also pointed out that the community was attractive to millennials looking for a first home costing less than $600,000. Overall, Carlsbad has four ZIP Codes and two of them are located on the coast and not surprisingly have higher real estate prices. The 92010 ZIP Code is located further from the beach and additionally has a large selection of multi-family units, providing greater affordability.
The median price of an attached home in this code was just $471,500 in September, an increase of 8.4% year-on-year. The median sales price of a detached home was $650,500, a 3.4% year-on-year increase. Inventory in the area remains quite tight with less than a two month supply of attached and detached homes. For buyers interested in affordable beachfront properties, it can be worth looking outside Carlsbad.
Oceanside is one of the most affordable beachside communities in southern California and has numerous downtown beachfront condominiums. The town is close to the Camp Pendleton military base which has helped keep prices affordable. The median sales price of a property in Oceanside is just $430,000. Sales prices are gradually increasing but have risen by just 1.4% year on year.
However things are changing in Oceanside and further growth is planned. Developers recently began work on a $21 million mixed use development in the downtown area which will encompass 66 apartments as well as retail and restaurant space and amenities for residents including a fitness centre and courtyard.