Update: The Real Estate Market in North County San Diego
Data Source: Mylene’s Real Estate Market Report uses data from CRMLS for 2018-2022 and represents properties listed or sold by various brokers.
Housing Inventory
The number of homes for sale is decreasing as we approach the holiday season. After a brief increase in inventory over the summer, we are back down to April/May levels.
Days on Market
The biggest change over the past few months has been the number of days on market. We have seen the number of days on market increase rapidly since August, going from approximately one week to sell, to between 2-3 weeks to sell. In addition to longer time on the market, fewer homes are selling above asking price. Instead, sellers are finding that they need to reduce the price before they are receive an offer.
Prices going down throughout North County
In North County, prices are steadily decreasing, after peaking earlier in the year.
[widget id=”text-31″]
Carlsbad – $1,450,000
September Sales: The median sales price for detached homes in Carlsbad for September sales was $1,450,000, significantly lower than April’s record of $1,925,000. At the same time, the median sales price for attached homes in September was $863,500, lower than June’s record of $904,000.
Days on Market: The number of days on market in Carlsbad has increased since the beginning of the summer. In July, most homes sold within 9 days. In September, the median number of days on market for detached homes rose to 27. The median number of days on market for attached homes sold in September was 15.
Inventory: Inventory in Carlsbad has been decreasing since the summer. We are currently back down to May levels.
Here’s how the inventory has changed since 2018.
Encinitas/Cardiff-by-the-Sea – $2,137,500
September Sales: The median sales price for detached homes in Encinitas in September was $2,137,500, below May’s historic high of $2,500,000. The median sales price for attached homes in September was $972,500, much lower than May’s record of $1,343,750.
Days on Market: The median number of days on market for September sales has increased to 21 for detached homes and 11 for attached homes.
Inventory: Total inventory levels for Encinitas and Cardiff homes have gone down since the summer began. You can see in the chart below, how it compares to the past 3 years of inventory.
San Marcos – $931,000
September Sales: The median sales price for detached homes in San Marcos in September was $931,000, more than $200k below March’s all-time record of $1,166,557. The median sales price for attached homes was $635,000, almost $100k below June’s record of $732,000.
Days on Market: The median number of days on market have more than doubled since the summer. For September sales, detached homes had a median number of 19 days on the market, with 17 for attached homes.
Inventory: Total San Marcos inventory has decreased steadily since July.
Vista – $895,000
September Sales: The median sales price for detached homes in Vista in September was $895,000, less than May’s record of $950,000. The median sales price for attached homes was $515,000, less than May’s record of $593,500.
Days on Market: The median number of days on market has doubled since the summer. It is now 14 for detached homes, and 12 for attached homes.
Inventory: In Vista, unlike other cities in North County San Diego, the inventory for detached and attached homes keeps increasing. Currently, it is back up to November 2019 levels.
Oceanside – $862,000
September Sales: The median sales price for detached homes in Oceanside in September was $862,000, lower than April’s record of $950,000. The median sales price for attached homes in September was $540,000, less than May’s record of $594,750.
Here’s how sales prices of Oceanside detached homes have changed since January 2019.
Days On Market: Similar to other cities in North County, the number of days on market has doubled since the summer. For September sales, detached homes had a median number of days on market of 19. Attached homes sold within a median number of 18 days.
Inventory: In Oceanside, inventory levels have decreased since July.
Escondido – $870,000
September Sales: The median sales price for detached homes was $870,000, lower than May’s record of $925,000. The median sales price for attached homes in September was $540,000, slightly less than May’s record of $550,000.
Here’s how sales prices of Escondido detached homes have changed since January 2019.
Days on Market: The median number of days on market for detached home sales was 17. The median number of days on Market for attached home sales in September was 19.
Inventory: In Escondido, total inventory has continued to increase this year. It is now back up to December 2019 levels.
Consult the North County San Diego Real Estate Market Report
My Real Estate Market Report covers the areas of Carlsbad, Encinitas/Leucadia/Cardiff-by-the-Sea, San Marcos, Vista, Oceanside and Escondido.
Download – North County San Diego Market Report – October 2022
Solar Rebates – 30% Federal Tax Credit Available through 2032
Are you considering adding solar to your roof? Federal tax code now 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 and shade tree removal. Check with your tax professional.
This incentive will continue for 10 more years, and eventually taper down to 26% in 2033.
For more information, read my Solar for Homeowners article series.
2022 Mortgage Limits
The 2022 mortgage limit for conventional and FHA loans in San Diego County increased significantly in January. The conforming loan limit increased from $548,250 to $647,200. The high balance (non-jumbo) loan limit for San Diego County increased from $753,250 to $879,750. As a result, loans at or below this amount usually offer the lowest interest rates.
Loans between $647,000 and $879,750 are super conforming, or high balance loans. Any loans above $879,750 are jumbo loans.
Since January 1, 2020, there is no mortgage limit for VA loans. The lender will determine a VA borrower’s maximum loan amount. VA borrowers are no longer required to bring in a specific down payment amount; the loan program is determined solely by the lender.
Interest Rates
Interest rates have gone up quickly in 2022. With excellent credit, fixed mortgage rates for 30-year terms hover around 7% for conventional loans. VA and FHA loan programs usually offer lower rates, closer to 6.5%.
The best interest rates are available to borrowers with excellent credit scores. Read more about how low interest rates help you save money.
Above all, your credit score plays a big role in determining your interest rate – read more about how to save $ by improving your FICO.
[widget id=”text-5″]
Low Down Payment Loan Programs
FHA Loan Programs offer mortgages with only 3.5% 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, depending on purchase price, 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! As a result of the programs, I was 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 WaterSmart Landscape Training classes throughout San Diego County.
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
Finally, you are invited to attend a no-cost online home buyer workshop. Freddie Mac provides this comprehensive homeownership education course. CreditSmart® Homebuyer U offers six modules to promote education, homebuyer preparedness, and financial management.
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, which can 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
My real estate market report can help you see how home values are changing throughout North County. Are you considering becoming a homeowner in this area?
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. 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.
If you’re interested in buying a fixer property, you can consider a Renovation Loan. Renovation loans finance both property and 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.
Finally, 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.
Any questions? Would you like market data for San Diego areas not included in my Real Estate Market Report? Send me a message.
