This October 2017 Real Estate Market Report describes the real estate market conditions in Coastal North County San Diego, and how they have changed over the past month and year.
What’s Happening in the North County San Diego Real Estate Market?
The fall season has brought us lower inventory, and similar sales prices. The San Diego real estate market enjoys a large pool of well-qualified buyers, who continue to compete for a limited inventory. This has kept the market stable, to the advantage of people owning and selling homes.
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In Carlsbad, there are 2.5% fewer homes for sale than one month ago. The number of days on market for attached homes is still 11, but for detached homes, it increased from 14 in August to 22 in September. The September median sales price for detached homes dropped to $894,000 from $982,250 in August. The median sales price for attached homes increased from $520,563 in August to $589,000 in September. Both attached and detached sales in September have a median price-per-square-foot of about $377.
In Encinitas, inventory is down 8% from one month ago. The number of days on market dropped in September, from 21 to 15 for detached homes, and from 19 to 11 for attached homes. Median sales prices in September were lower than in August – they dropped from $1,330,000 to $1,025,000 for detached homes, and from $700,000 to $595,000 for attached homes.
In San Marcos, inventory is down 3% from one month ago. Sales prices and demand were very similar between August and September. Most homes sold within two weeks. Median sales prices were $634,950 for detached homes, and $438,000 for attached homes.
In Vista, inventory is 3% down from one month ago. The number of days on market increased from 16 to 19 for detached homes, and from 6 to 23 for attached homes. Median sales prices for detached homes increased from $544,500 to $565,000, and prices for attached homes increased from $302,500 to $323,500.
Interest Rates
Interest rates recently hit 2017 lows. Fixed mortgage rates for 30-year terms continue to hover around 4% for conventional loans. VA and FHA loans have enjoyed lower rates, mostly below 4%.
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Mortgage Limits in 2017 – Conventional, VA, FHA
The 2017 mortgage limit for conventional, VA, and FHA loans in San Diego County is $612,950. The conforming loan limit is now $424,100. Loans at or below this amount usually offer the lowest interest rates.
Loans between $424,100 and $612,950 are super conforming loans. Any loans above $612,950 are jumbo loans.
Loan Program Update
FHA Loan Programs offer mortgages with only 3 1/2% down payment. VA Loan Programs continue to offer $0 down payment mortgages to eligible military active duty and veterans, with no monthly mortgage insurance. Conventional loans are available starting at only 3% down payment, and some of these conventional loans are available with no monthly mortgage insurance.
All of these loan programs can be used for new purchases, or for refinancing existing mortgages.
THERE’S STILL TIME TO BUY SOLAR! Federal tax code allows for a one-time 30% Residential Energy Credit to purchase home solar photovoltaic systems. The credit may include any repairs necessary to install the panels, including roofing repairs. Check with your tax professional. This 30% incentive will be available through December 31, 2019, before tapering to 10% in 2022. Read my Solar for Homeowners article series.
Tree Trimming Season is Back
It’s time to schedule your tree pruning! Read more about when to prune your trees.
Property Taxes for 2017-2018 are Due
Property tax bills for 2017-2018 were mailed out to homeowners last month. The first installment is due in November, and must be paid by December 11 to avoid late charges. If you want to apply for the Property Tax Postponement Program, apply right away: if your application is accepted after the first installment is due, then you will need to pay it. Read more about Property Tax Calculation.
Down Payment Assistance
Low- to median-income borrowers may qualify for down payment assistance. Some programs can be layered on top of each other, to maximize your benefit.
Use the California Association of REALTORS® Down Payment Resource Tool to check all available programs. Here are links to my articles about some popular down payment programs:
- CalHFA Down Payment Assistance – deferred loans for first-time home buyers (haven’t owned a home in 3 years)
- San Diego Housing Commission – deferred loans and grants
- Fannie Mae HomePath Ready Buyer Program – grants up to 3% for Fannie Mae owned homes
- Golden State Finance Authority – grants up to 5% for down payment and closing costs
Consult the Real Estate Market Report for Your Area
My Real Estate Market Report covers the areas of Carlsbad, Encinitas/Leucadia/Cardiff-by-the-Sea, San Marcos, and Vista.
North County San Diego Market Report October 2017
What’s Next?
Selling Your Home
Are you curious about how much your home is worth? The Real Estate Market Report is a good start, but if you’re interested in the market value a particular property or area, contact me for a specific market analysis. In addition to my Real Estate Market Report, I also provide information about seller closing costs, to give you the true cost of selling a home.
You can also use my Seller Net Proceeds Worksheet, to estimate your bottom line. You can also read about the seller disclosure process. If you need to sell one home to buy another, here’s how to sell and buy a home at the same time.
If you’re a real estate investor and want to defer paying capital gains taxes by exchanging one property for another, then read my article about 1031 Exchanges.
Buying a Home
If you’re thinking of buying a home, use my Cost to Buy a House Worksheet and my Monthly Housing Costs Worksheet, to help you budget and plan for the future. You can also estimate your Mortgage Approval Amount. Learn more about the Cost to Buy a House and the Cost to Own a Home. If you are a cash buyer, read about Closing Costs for Cash Buyers.
For information about mortgages, you can read my articles about Choosing a Lender, How to Get Mortgage Approval, and How Much Home You Can Qualify to Buy.
If you’re interested in buying a fixer property and hiring contractors to make repairs and renovations, you should consider a Renovation Loan. Renovation loans finance both the property and the renovations, in one single mortgage payment. Renovation loans can be used to finance energy upgrades, like insulation, solar panels, and electric heat pump water heaters. Before you invest in energy efficiency, read about 7 Ways to Finance Energy Upgrades.
Any questions? Send me a message.
