Coronado Homes Under $1M
The Coronado market in the $600K-$1M range has really heated up, while inventory continues to pile at the upper end. Homes priced below $1M are likely moving due to the following factors:
1) Vacation home buyers from Arizona feel like now is the time to finally afford a beautiful Coronado condo. Condos which previously sold for $1M are selling now for $600K-$750K.
2) First time homeowners are buying condos or tear-down Coronado homes and taking advantage of Obama tax credits and/or FHA loans. TheObama tax credit gives first time home buyers an $8K tax credit. FHA loans are allowing buyers to put as little as 4% down on a loan up to $700,000. Thus, lots of homes are selling in the $715K range, with buyers putting only 4% down.
3) The domino effect…when homes are moving (largely due to reasons 1 and 2 above), prospective home buyers feel a sense of urgency. The urgency is either a) buy now before the best opportunities are gone; or b) buy now because prices are apt to rise with activity heating up.