This December 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 month and year.
What’s Happening in the North County San Diego Real Estate Market?
Coastal North County real estate is still high in demand, and the inventory is lower than from one month ago. December is typically the “slow” season in real estate, but we have not seen a dramatic change in sales prices this season.
Fortunately for home sellers, there is still plenty of buyer activity. Homes that are well-marketed and priced appropriately continue to sell very quickly.
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In Carlsbad, inventory is slightly lower than one month ago. Fewer properties were listed in November than in October, and fewer properties were sold in November than in October. Sales prices haven’t changed significantly in the past month.
In Encinitas, the inventory for detached homes is down 15% from one month ago. Fewer properties were listed in November than in October. Detached home sales in November took about twice as long on the market to sell than October sales.
In San Marcos, the inventory for detached homes is down over 20% from one month ago. Fewer properties were listed in November than in October. November sales prices for detached homes increased – the median sales price increased from $574,900 in October to $654,000 in November. Also, the number of days on market for detached home sales decreased from 26 in October to only 16 in November.
In Vista, the inventory for detached homes is down 11% from one month ago. Fewer homes were listed in November than in October. Sales prices were stable between October and November.
Interest Rates
Fixed mortgage rates have increased following Election Day, and hover above 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 will be $612,950. Loans between $424,100 and $612,950 will be super conforming loans. Any loans above $612,950 will be 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 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.
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.
North County San Diego Market Report December 2016
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.
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 and solar panels. Before you invest in energy efficiency, read about 7 Ways to Finance Energy Upgrades.
Any questions? Send me a message.
