What’s the median or average home price in Carlsbad CA? Right now the official tally says it’ll set you back a cool $1.2 million. You can look it up and it will say “The Median Home Price in Carlsbad CA is $1,200,000.00” or close to that number.

– That number is many things to many people – but in the end it’s just a number. I think it would be useful for readers of this article to look at some human terms instead of just numbers. Let’s say you’re one of the rare ones who can afford to buy in Carlsbad CA today. That $1,200,000.00

is likely to be your life savings after working for many years and scrimping and saving every penny you can. You’ve invested in stocks over the years but it’s time to move the money out of there so you can own a home. You decide to use all your stock winnings plus some extra cash your family loaned you to purchase this $1,200,000.00 home.

Congratulations – you just purchased your second or third but unaffordable home! You’re very excited but also nervous because that’s a huge amount of money to spend on just one thing. The good news is that the value of your new home should continue to climb over time providing equity for future purchases like cars, furniture and other things you’ll need to live the good life. You may even want to consider selling your house in a few years and using the equity to buy a better home.

Or the market could do the unexpected or now, highly anticipated and turn downward and you’d be underwater forever or have to go into short sale or foreclosure

Now let’s say that instead of buying your $1,200,000.00 home today, you waited 5 years and saved aggressively bought it with a $325,000 or higher down payment from savings and the sale of your current home. A month or two of temporary living and you’ve realized a huge savings. You just made all that hard to come by spending money because your current home appreciated in value by that much more over the last 5 years. This is a good example of how real estate appreciation works and the reason you see investors buying homes for cash or high down payments instead of using financing.

If you’re not familiar with this kind of profit from primary residence equity then I hope that article helps you understand better how it all works. It can be difficult to wrap your head around at first but once you see it work time and again for yourself, you’ll get the hang of it.

Meanwhile, the price of a home in Murrieta, Temecula or Menifee is only $500k – $600K and Carlsbad is usually less than an hour away. You can hit the beach and all the popular places and get to know the town a lot better before you decide what and where to buy.

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