North County San Diego Real Estate Market Report – December 2015

December 5, 2015

If you’re planning to buy or sell North County San Diego real estate, start keeping track of market trends. My real estate market report will inform you about market conditions in Coastal North County San Diego, and how they have changed over the past year.

Property tax bills for the 2015-2016 fiscal year have been sent to homeowners. The first installment is due on December 10. You can read my article about Property Tax Calculation for an explanation of how tax is calculated, or you can simply contact me to discuss your bill.

Homeowners: don’t forget to get your free rain barrel, and to schedule your tree trimming before spring.

What’s Happening in the North County San Diego Real Estate Market?

Buyer activity has slowed down more than we usually expect in the fall. The reduced buying activity has forced many home sellers to reduce their prices. As a result, the time it takes for a home seller to accept an offer has increased slightly. Still, prices have increased year-over-year, and most homes go into escrow within a month.

The exception to this slowing trend is the Leucadia/Encinitas/Cardiff-by-the Sea area; that market has remained very stable. There is a consistently high demand for real estate, which keeps prices increasing slowly.

Interest Rates

Rates haven’t changed much all year. Fixed 30 year mortgage rates are still in the high 3%/low 4% range. In late November, one of my clients locked in an interest rate of 3.75% for a fixed-rate VA loan.
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Mortgage Limits in 2015 – Conventional, VA, FHA

The 2015 mortgage limit for San Diego County is $562,350. Starting January 1, 2016, the mortgage limit for conventional loans in San Diego County will increase to $580,750. We are still waiting for 2016 loan limits to be announced for VA and FHA borrowers.

Loan Program Update

FHA Loan Programs provide a way to buy a home with only 3 1/2% down. VA Loan Programs continue to offer $0 down mortgages to eligible military active duty and veterans. Conventional loans are available with only 3% down payment. All of these programs can be used for new purchases, or for refinancing.

If you’re interested in financing energy upgrades, such as solar panels, there are a number of options to choose from. You can read my article about PACE financing to learn about PACE, and other options, such as Energy Efficient Mortgages.

Down Payment Assistance

The California Housing Finance Agency (CalHFA) 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

What’s Next?

Selling Your Home

Are you curious about how much your home is worth? Are you considering buying a home in a certain neighborhood? If you’re interested in a particular property or area, contact me for a specific market analysis. I also provide information about seller closing costs, to give you a good idea of the true cost of buying or selling real estate, depending on the property.

If you’re thinking of selling, 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, you can 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 read 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. These 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.

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.

Effective October 3, 2015, the loan disclosure forms have changed nationwide. These changes are designed to help home buyers clearly understand the terms of the mortgage and the escrow and other closing costs. The CFPB offers guides to the Loan Estimate and the Closing Disclosure.

Any questions? Send me a message.