What’s Happening in the North County San Diego Real Estate Market?
Inventory
As expected, inventory has continued to increase since January. The supply and demand are rising together. As more homes are being listed on the market, according to statewide lockbox access data, more buyers are touring properties.
Days on Market
In some markets, March sales showed a reduced number of days on market from February. Overall, properties are selling more quickly than they did at the beginning of the year.
Prices
Even though the market has slowed, prices remain stable. Some anticipate that market values will increase at a slower rate in 2019, perhaps increasing 5% over the year.
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Carlsbad
In Carlsbad, early April inventory for both detached and attached homes increased 10% from early March. The median sales price for detached homes increased by 15%, from $883,700 in February to $1,025,000 in March. (This 15% increase shows that the prices are stable: note that the median sales price had decreased 14% between January and February.)
The median sales price for attached homes increased by 6%, from $536,650 in February to $569,500 in March. The median number of Days on Market went down in March, to just under 3 weeks.
Here’s how sales prices for Carlsbad detached homes have changed over the past year.
Here’s how inventory changed throughout last year for Carlsbad detached homes. Inventory peaked at the end of last summer, and we’re climbing back up to pre-holiday levels.
Encinitas/Cardiff-by-the-Sea
In Encinitas, inventory for both detached and attached homes increased by a whopping 23%. At the same time, the median sales price for detached homes decreased by 4%, from $1,480,000 in February to $1,415,000 in March. At the same time, the median sales price for attached homes increased by 39%, from $520,000 in February to $725,000 in March. This big increase shows the stability of the market, though, since the median price in January was $746,000.
Detached homes in Encinitas are selling more quickly than earlier this year. The median number of Days on Market was only 10 for detached homes, and 29 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 of detached homes is still 46% higher than one year ago.
San Marcos
In San Marcos, total inventory decreased 11% between early March and early April. At the same time, the median sales price for detached homes increased 9%, from $660,000 in February to $725,000 in March. Similarly, the median sales price for attached homes increased 13%, from $421,750 in February to $480,000 in March.
March sales of detached homes took longer than February sales. Most homes sold within 4 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 dropped for the holiday season, and hasn’t yet recovered. Still, the inventory for detached homes in San Marcos is 13% higher than one year ago.
Vista
In Vista, inventory for both detached and attached homes increased 4% between early March and early April. The median sales prices for detached homes decreased slightly, from $545,000 in February to $542,250 in March. Additionally, the median sales price for attached homes decreased 9%, from $405,000 in February to $366,000 in March.
The time it took to sell a home increased for March sales – the median number of days on market for detached home sales was only 27 in March, compared to 27 in February.
Inventory in Vista has increased by 42% between April 2018 and April 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 – April 2019 North County San Diego Real Estate Market Report
Solar Rebates – 30% Federal Tax Credit Available through December 31 – only 7 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. Any loans above $690,000 are jumbo loans.
Interest Rates
After a steady increase for over a year, interest rates have recently dropped to 18-month lows. With excellent credit, fixed mortgage rates for 30-year terms hover around 4% for conventional loans. VA and FHA loans have slightly lower rates, closer to 3.75%.
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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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.
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.
