This monthly 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?
It might be Halloween season, but there’s nothing eerie about the real estate market. San Diego real estate in 2018 has experienced a steady trajectory of gradual increases, with some corrections along the way. During some months, the final sales prices have gone up, only to go down the following month. The overall changes we see are gradual increases in sales prices. In past couple of months, we have also seen many price reductions and longer market times for high-priced listings.
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In Carlsbad, inventory for both detached and attached homes is only 2% lower than one month ago. The September median sales price for detached homes is identical to August, at $1,045,000. The median sales price for attached homes increased 9%, from $582,000 in August to $635,000 in September. Most homes in Carlsbad were sold within 3 weeks.
In Encinitas, inventory for both detached and attached homes is almost identical to one month ago. The median sales price for detached homes is almost identical between August and September. The median sales price for attached homes decreased 12%, from $748,500 in August to $655,000 in September. Most homes in Encinitas were sold within 24 days.
In San Marcos, inventory is only 2% higher than last month. The August median sales price for detached homes increased 4%, from $699,950 in August to $733,750 in September. For attached homes, the median sales price dropped 14%, from $445,000 in August to $380,000 in September. Most homes sold within 3 weeks.
In Vista, inventory for both detached and attached homes is down 6% between August and September. The median sales price for detached homes decreased 5%, from $570,000 in August to $539,500 in September. The median sales price for attached homes is almost identical. For attached homes, the median number of days on market increased from 12 in August to 38 in September.
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.
Download – North County San Diego Market Report October 2018
2018 Mortgage Limits
The mortgage limit for conventional, VA, and FHA loans in San Diego County is $649,750. The conforming loan limit is $453,100. Loans at or below this amount usually offer the lowest interest rates.
Loans between $453,100 and $649,750 are called super conforming, or high balance loans. Any loans above $649,750 are jumbo loans.
Interest Rates
Interest rates have been steadily going up all year. With excellent credit, fixed mortgage rates for 30-year terms hover around 5% for conventional loans. VA and FHA loans have slightly lower rates, closer to 4.75%. Also, your credit score plays a big role in determining your interest rate.
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Low Down Payment Loan Programs
FHA Loan Programs offer mortgages with only 3 1/2% down payment. VA Loan Programs 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.
Have you had a bankruptcy, short sale, or foreclosure? Find out how long you need to wait to buy again, which depends on the event and the type of loan you want to obtain.
Solar Rebates – 30% Federal Tax Credit Available through 2019
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% until 2022. Read my Solar for Homeowners article series.
Time to Switch to Waterwise Landscaping
More funding is available! You can get paid to switch our your turf for more sustainable landscaping. Read my article about rebates for turfgrass removal. If you want to learn more about water-wise landscaping, the Metropolitan Water District of Southern California offers free California Friendly Landscape classes online. The San Diego County Water Authority also offers free California Friendly Landscape Training classes throughout San Diego County.
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) – new updates for 2018!
- 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
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. Thinking about becoming an investor? Read my article about how to choose a rental property.
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 need funds for a down payment, read about Down Payment Funding Options. 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 can 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.
