This monthly 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?
In December, many sellers take their homes off the market for the holidays, and many buyers take a break from shopping for homes. In North County, inventory went down, as predicted. The November sales prices showed the same steady, gradual increase in property values that we have seen all year.
I’m currently working on graphs that show median sales prices for each month of 2018. A 2018 Summary article should be out by sometime early January.
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In Carlsbad, late December inventory for both detached and attached homes is down 16% from early November. The median sales price for detached homes went up 5%, from $985,500 in October to $1,044,000 in November. (These numbers have held steady since the summer. Note that the median sales prices in August and September were $1,045,000.) The median sales price for attached homes was almost the same, going from $535,000 in October to $525,000 in November. Most homes in Carlsbad were sold within 4 weeks.
In Encinitas, inventory for both detached and attached homes, which hadn’t changed much since August, is down 26% between early November and late December. The median sales price for detached homes decreased 12%, from $1,480,000 in October to $1,300,000 in November. (Note that the median sales price in September was similar to November, at $1,325,000.) The median sales price for attached homes decreased 4%, from $627,000 in October to $659,500 in November. (The September median sales price was similar to November, at $655,000.) Most homes in Encinitas were sold within 3 weeks.
In San Marcos, inventory is 20% lower than in early November. The median sales price for detached homes increased 3%, from $657,500 in October to $680,000 in November. For attached homes, the median sales price went down 4%, from $469,500 in October to $447,000 in November. Most homes sold in less than 4 weeks.
In Vista, inventory for both detached and attached homes went down 7% between early November and late December. The median sales price for detached homes decreased 3%, from $567,450 in October to $549,000 in November. The median sales price for attached homes was almost the same in October and November. Most homes sold in less than 2 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.
Download – North County San Diego Real Estate Market Report December 2018
Solar Rebates – 30% Federal Tax Credit Available through 2019 – ONLY ONE YEAR LEFT!
THERE’S ONLY ONE YEAR LEFT FOR THE 30% FEDERAL TAX CREDIT! 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% until 2022. Read my Solar for Homeowners article series.
2019 Mortgage Limits
2019 mortgage limits were recently announced. The mortgage limit for conventional, VA, and FHA loans in San Diego County is $690,000. The conforming loan limit increased to $484,350. Loans at or below this amount usually come with 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 all year, interest rates have recently dropped. With excellent credit, fixed mortgage rates for 30-year terms hover around 4.5% for conventional loans. VA and FHA loans have slightly lower rates, closer to 4.25%. Also, 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. 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.
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 – take advantage before it runs out! I was recently paid to replace my turf grass with native landscaping, at $2.75 per square foot. 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.
Also, now is the best time to trim trees – get tree trimming scheduled before the spring!
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) – new updates for 2018!
- 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. Thinking about becoming an investor? Read my article about how to choose a rental property.
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 need funds for a down payment, read about Down Payment Funding Options. 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 can 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.
