This December 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. But first…
First Installment of 2017-2018 Property Taxes is Due
Property tax bills for 2017-2018 were mailed to homeowners in September. The first installment is due in November, and must be paid by December 11 to avoid late charges. If you want to apply for the Property Tax Postponement Program, apply right away: if your application is accepted after the first installment is due, then you will need to pay the first installment. Read more about Property Tax Calculation.
2018 Mortgage Limits Have Been Announced
Effective January 1, 2018, the mortgage limit for conventional, VA, and FHA loans in San Diego County will increase to $649,750. The conforming loan limit will go up to $453,100. Loans at or below this amount usually offer the lowest interest rates.
Loans between $453,100 and $649,750 are super conforming loans. Any loans above $649,750 are jumbo loans.
Programs that are ending this month – Apply Now!
Both homeowners and renters in San Diego County are eligible for these free programs. Unfortunately, funding is supposedly ending next month… so please apply right away!
Free Solar Analysis from Center for Sustainable Energy
Anyone considering going solar can have a free analysis by the Center for Sustainable Energy. It’s called a “Shade Analysis,” but it’s more than that. An inspector from the Center for Sustainable Energy comes to your property, inspects your roof, and answers all of your questions about solar. These aren’t salespeople, so they can help you choose the right size for your home based on your actual energy needs. Since solar systems are priced based on size, choosing the right size can save you $$$. Sign up here for a free analysis.
You can also read my Solar for Homeowners article series, to learn what to do (and what to ask) before buying a solar PV system.
Free Irrigation Checkup
Have you signed up for your free irrigation checkup? San Diego County residents are eligible for this free program, that can save you $$$ on your water bill! A consultant comes to your home and tests out your irrigation system. From this visit, you will receive a report that includes any recommendations to improve water coverage and water conservation.
You can also qualify for a rebate for a rain barrel, to capture rainwater for irrigation.
Free Energy and Water Tune-Up from Center for Sustainable Energy
Limited time only – FREE energy and water tune-ups are going away after 2017! All SDG&E residents are eligible, so sign up today! This program includes free testing of many components of your home, AND you get lots of free stuff, like LED bulbs, water temperature thermometer, water aerators, and water heater pipe insulation!
What’s Happening in the North County San Diego Real Estate Market?
Many people don’t want to sell their homes during the holiday season. As a result, the inventory has dropped even lower than before. There are plenty of buyers who want to take advantage of the slow season, so I expect much of the current inventory to be sold before the beginning of the new year.
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In Carlsbad, inventory has dropped by 24% from one month ago. The November median sales price for detached homes decreased by over 5%, from $985,000 in October to $930,000 in November. Still, this is almost $100,000 higher than one year ago, when the median sales price for detached homes was $839,000. For November sales, most homes in Carlsbad were sold within 3 weeks.
In Encinitas, inventory has also dropped in the past month. There are 12% fewer homes for sale than one month ago. The median sales price for detached homes was identical between October and November, at $1,250,000. The median sales price for attached homes decreased by 10%, from $661,000 in October to $592,500 in November. The median number of days on market also increased to 25 days for detached homes, and 15 days for attached homes.
In San Marcos, inventory has dropped by 20% from one month ago. The November median sales price for detached homes increased 9% from October, from $627,500 to $685,000. Most homes sold within two weeks.
In Vista, inventory has dropped by 19% from one month ago. The median sales price for detached homes increased 9% from October, from $525,300 to $572,500. In November, most homes sold within 3 weeks.
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 Real Estate Market Report December 2017
Interest Rates
Interest rates have been stable throughout the year. Fixed mortgage rates for 30-year terms continue to hover around 4.5% for conventional loans. VA and FHA loans have enjoyed lower rates, at or below 4.5%.
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Loan Program Update
FHA Loan Programs offer mortgages with only 3 1/2% down payment. VA Loan Programs 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.
Solar Rebates – 30% Federal Tax Credit Available through 2019
THERE’S 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 Back
It’s time to schedule your tree pruning! Read more about when to prune your trees.
Cooler Weather = Time to Switch to Waterwise Landscaping
You can get paid to switch our your turf for more sustainable landscaping. 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. 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. 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
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.
