What’s Happening in the North County San Diego Real Estate Market?
Inventory
As of February 7, inventory had not really increased since the beginning of the year. On the other hand, as you can see from the inventory charts below, it’s still much higher than one year ago. In addition, we expect more homes to be listed on the market throughout the spring season.
Days on Market
Another trend that has continued through January is how long it takes to sell. The number of days on market has gradually increased since last summer. For example, the average home seller will have their house on the market for just over a month before they accept an offer. One year ago, it took about 3 weeks to sell a home.
Prices
As far as prices go, even though the market has slowed down, prices have remained stable. Some anticipate that market values will increase at a slower rate in 2019, perhaps increasing 5%. I’m interested in seeing what happens during the March/April/May season – spring is usually when inventory and prices both rise.
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Carlsbad
In Carlsbad, early February inventory for both detached and attached homes was almost identical to early January. The median sales price for detached homes increased only slightly, from $1,018,500 in December to $1,027,850 in January. On the other hand, the median sales price for attached homes decreased by 10%, from $590,000 in December to $526,250 in January. (At the same time, the November median sales price was $525,000). The median number of Days on Market is just over 30.
Here’s how sales prices for Carlsbad detached homes have gradually increased over the past year.
Here’s how inventory changed throughout last year for Carlsbad detached homes. Inventory peaked at the end of the summer. We still have over 50% more listings than in early January 2018.
Encinitas/Cardiff-by-the-Sea
In Encinitas, inventory for both detached and attached homes, increased by 6%. In addition, the median sales price for detached homes decreased slightly, from $1,460,000 in December to $1,442,721 in January. At the same time, the median sales price for attached homes increased slightly, from $730,000 in December to $746,000 in January.
The time it takes to sell a home in the Encinitas/Cardiff area has gone up over the past few months. In January 2019, the median number of Days on Market was 42 for detached homes, and 39 for attached homes.
Inventory in Encinitas/Cardiff peaked near the end of summer, and then dropped by the end of the year. At the same time, inventory is still over 40% higher than one year ago.
San Marcos
In San Marcos, total inventory decreased by 4% between early January and early February. At the same time, the median sales price for detached homes decreased 5%, from $717,450 in December to $678,000 in January. (Note that the median sales price in November was $680,000.) On the other hand, the median sales price for attached homes slightly increased, from $434,500 in December to $438,000 in January.
January sales were faster than December sales. Most homes sold within 3 weeks.
San Marcos prices held steady throughout 2018. The median price peaked in September 2018, at $733,750.
Inventory for detached homes in San Marcos has doubled in the past year.
Vista
In Vista, inventory for both detached and attached homes was almost identical between early January (178) and early February (176). The median sales prices for detached homes was almost identical between December 2018 ($554,000) and January 2019 ($553,900). On the other hand, the median sales price for attached homes increased by 12%, from $297,000 in December to $333,500 in January. (November median sales price was $351,500.)
The time it took to sell a home decreased for January sales – 30 days for detached homes, and 8 days for attached homes.
Inventory in Vista increased by 32% between February 2018 and February 2019.
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 Real Estate Market Report February 2019
Solar Rebates – 30% Federal Tax Credit Available through December 31 – only 9 months left!
THE 30% FEDERAL TAX CREDIT ENDS THIS YEAR! Federal tax code currently 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. For more information, read my Solar for Homeowners article series.
2019 Mortgage Limits
The 2019 mortgage limit for conventional, VA, and FHA loans in San Diego County is $690,000. In addition, the conforming loan limit increased to $484,350. As a result, loans at or below this amount usually offer the lowest interest rates.
Loans between $484,350 and $690,000 are called super conforming, or high balance loans. On the other hand, any loans above $690,000 are jumbo loans.
Interest Rates
After a steady increase for over a year, interest rates have recently dropped. With excellent credit, fixed mortgage rates for 30-year terms hover around 4.25% for conventional loans. VA and FHA loans have slightly lower rates, closer to 4%. Above all, your credit score plays a big role in determining your interest rate – read more about how to save $ by improving your FICO.
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2018 Tax Season is Here
The 2018 tax code contains some important changes for homeowners. Read my article about the 2018 tax code, and most importantly, talk to your CPA about how deductions have changed for 2018.
Low Down Payment Loan Programs
FHA Loan Programs offer mortgages with only 3 1/2% down payment. In addition, VA Loan Programs offer $0 down payment mortgages to eligible military active duty and veterans, with no monthly mortgage insurance. On the other hand, conventional loans are available starting at only 3% down payment, and some of these conventional loans are available with no monthly mortgage insurance.
Moreover, all of these loan programs can be used for either 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.
Time to Switch to Waterwise Landscaping
More funding is available to remove your lawn – take advantage before it runs out! I was recently paid $2.75 per square foot to replace my turf grass with native landscaping. To learn more, 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. In addition, the San Diego County Water Authority also offers free California Friendly Landscape Training classes throughout San Diego County.
Most importantly, now is the best time to trim trees – get tree trimming scheduled BEFORE March!
Down Payment Assistance
Low- to median-income borrowers may qualify for down payment assistance. In addition, some programs can be layered on top of each other, to maximize your benefit.
Start by using the California Association of REALTORS® Down Payment Resource Tool to check all available programs. Meanwhile, here are links to my articles about some popular down payment programs:
- CalHFA Down Payment Assistance – deferred loans for first-time home buyers (if you 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
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. Secondly, you can also read about the seller disclosure process. Finally, if you need to sell one home before you can 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
To begin with, if you’re thinking of buying a home, use my Cost to Buy a House Worksheet and my Monthly Housing Costs Worksheet. These tools can help you budget and plan for the future. Secondly, you can also estimate your Mortgage Approval Amount. Finally, learn more about the Cost to Buy a House and the Cost to Own a Home. On the other hand, if you are a cash buyer, read about Closing Costs for Cash Buyers.
Meanwhile, if you need funds for the down payment, read about Down Payment Funding Options.
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. For example, renovation loans can be used to finance energy upgrades and fireproofing upgrades, such as insulation, solar panels, and electric heat pump water heaters. Most importantly, read about 7 Ways to Finance Energy Upgrades before you invest in energy efficiency.
Any questions? Send me a message.
