A large number of buyers these days, especially in more expensive housing markets like Carlsbad (and Southern California in general), are struggling to purchase homes. A major issue is the downpayment.

Part of the problem is the changing requirements by the mortgage companies that make 100% financing hard to find, and not available in many cases. Even if you can afford to make monthly payment, without a downpayment your options may be pretty limited.

Coupled with that is the reality that many buyers, especially first time buyers, do not have much of a down payment (10% for a starter home in our area is $50K, but in some very different housing markets you only need $10K). And if you are putting less than 20% down you will be required to have mortgage insurance which adds  even more to the costs.