This April 2016 Real Estate Market Report describes the real estate market conditions in Coastal North County San Diego, and how they have changed over the past year.
Homeowners: The second installment of property taxes is due by April 10 – you can download my worksheet to help you calculate future property tax liability. Also, it’s time to postpone tree trimming until October. Are you ready to lower your water bill? For a limited time, you can apply for a FREE irrigation system checkup. This free service will offer tips to reduce both outdoor and indoor water usage. And, if you have central air conditioning but haven’t upgraded to a digital thermostat, SDG&E will give you an ecobee thermostat for free!
What’s Happening in the North County San Diego Real Estate Market?
Coastal North County real estate continues to experience very low inventory, and growing buyer demand. While inventory levels haven’t changed much over the past year, there are some notable price increases.
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In Carlsbad, the median price per square foot has increased over the past year – for detached homes, it has increased by $22, and for attached homes, it has increased by $25. For a 2500 square foot house, that could mean an increase of $55,000! Sales has increased as well – the number of detached homes that sold in March is double the number of detached homes that sold in February.
In Encinitas, inventory levels have also stayed flat. From one year ago, the median price per square foot for attached housing has increased from $428 to $512. These attached properties don’t last long on the market – the median number of days on market has decreased from 16 in February to only 6 in March!
In San Marcos, current inventory levels are slightly lower compared to one year ago. Prices for detached homes have increased. Out of the 108 detached homes currently listed for sale, 28 are priced above $900,000. Detached homes are also selling more quickly – the median number of days on market has decreased, from 41 in February to only 17 in March.
In Vista, the real estate market has been very stable. There haven’t been large fluctuations in inventory and prices. Most homes are sold within 3 weeks.
Interest Rates
Fixed 30 year mortgage rates have stayed under 4% in 2016. I have a client who just locked in a 3.25% interest rate on an FHA loan. FHA and VA rates are usually lower than conventional 30-year fixed rates.
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Mortgage Limits in 2016 – Conventional, VA, FHA
Effective January 1, 2016, the mortgage limit for conventional, FHA, and VA loans in San Diego County has increased to $580,750.
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 with only 3% down payment, and some of these conventional loans are available with no monthly mortgage insurance. All of these programs can be used for new purchases, or for refinancing existing mortgages.
IT’S STILL TIME TO BUY SOLAR! The 30% tax credit will not expire this year! 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.
Down Payment Assistance
The San Diego Housing Commission provides loans and grants to help first-time home buyers. The California Housing Finance Agency (CalHFA) also offers down payment assistance to low- to moderate-income Californians. HomePath offers a down payment assistance program called the HomePath Ready Buyer Program. Also, check out the Down Payment Resource Directory, an online search tool to identify more down payment assistance programs.
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 the April 2016 Market Report
What’s Next?
Selling Your Home
Are you curious about how much your home is worth? 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.
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 Preapproval, 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 and solar panels. Before you invest in energy efficiency, read about 7 Ways to Finance Energy Upgrades.
In 2015, the Consumer Financial Protection Bureau (CFPB) released a new toolkit to guide consumers through the process of shopping for a mortgage and buying a home. The Home Loan Toolkit is a helpful tool to help you plan your purchase. The CFPB also has a website called “Owning a Home,” full of online tools and resources for prospective home buyers. The CFPB has written guides to the Loan Estimate and the Closing Disclosure.
Any questions? Send me a message.
