This August 2017 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?
Not much has changed this summer. Inventory is still low – there’s a HUGE buyer demand, and little seller supply. Prices have also remained stable – higher in some areas, lower in others. The large pool of well-qualified buyers, along with limited inventory and stable prices, all indicate a strong, steady real estate market. The median sales prices in June for all of North County were $705,000 for detached homes, and $440,000 for attached homes.
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In Carlsbad, inventory levels stayed flat over the past month. Compared to June, fewer homes were listed in July, and fewer homes closed escrow. July sales prices showed an increase in price-per-square-foot, even though the sales prices for detached homes were lower. The median sales price for detached homes dropped from $955,000 in June to $901,056 in July. At the same time, the median sales price for attached homes increased, from $524,083 in June to $560,250 in July.
In Encinitas, inventory levels are slightly lower from one month ago. There were fewer closed escrows in July than in June. Median sales prices, which had shot up between May and June, came back down to historically consistent levels. The median sales prices for all July sales were $1,180,000 for detached and $559,000 for attached homes.
In San Marcos, inventory is almost identical to one month ago. Fewer homes sold in July than in June. While the median sales price for detached homes decreased from $670,000 in June to $635,250 in July, the median sales price for attached homes increased from $432,500 in June to $451,000 in July.
In Vista, inventory has dropped slightly since July. The median sales price for detached homes decreased from $542,500 in June to $530,000 in July. The median sales prices for attached homes also decreased, from $340,000 in June to $325,000 in July.
Interest Rates
Interest rates have been steady, and are projected to remain steady for the remainder of the year. Fixed mortgage rates continue to hover around 4% for conventional loans. VA and FHA loans have enjoyed lower rates, mostly below 4%.
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Mortgage Limits in 2017 – Conventional, VA, FHA
Effective January 1, 2017, the mortgage limit for conventional, VA, and FHA loans in San Diego County is $612,950. The conforming loan limit is now $424,100. Loans at or below this amount usually offer the lowest interest rates.
Loans between $424,100 and $612,950 are super conforming loans. Any loans above $612,950 are jumbo loans.
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 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.
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% in 2022. Read my Solar for Homeowners article series.
Tree Trimming Season is Over (for the season)
We are in the middle of nesting season, so please delay your tree pruning until September or October. Read more about when to prune your trees.
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)
- 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
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.
North County San Diego Market Report August 2017
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.
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 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 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, 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.
