What’s Happening in the North County San Diego Real Estate Market?
Source: Mylene’s Real Estate Market Report uses data from CRMLS for 2018 through 2019 and represents properties listed or sold by various brokers.
Inventory
North County inventory has been declining all season. We saw a big decrease between early November and early December:
- Carlsbad: over 10% down
- Encinitas/Cardiff: over 15% down
- San Marcos: over 16% down
- Vista: 11% down
- Oceanside: almost 16% down
- Escondido: over 15% down
Days on Market
The median number of days on market hasn’t changed much between October and November sales. Across North County, most homes are selling within 3 weeks.
Prices
Prices have been stable all year. Between October and November, final sales prices decreased in some areas, and increased in others. It’s also worth noting that Carlsbad, Vista, and Oceanside all had the highest median sales prices in recent history.
Looking at the charts below, we can see how large increases or decreases usually correct themselves within a month or two.
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Carlsbad
November Sales: The median sales price for detached homes in Carlsbad increased by almost 8%, from a high of $1,060,000 in October to a NEW high of $1,143,000 in November. At the same time, the median sales price for attached homes increased 4%, from $590,000 in October to $617,000 in November.
Days on Market: The median number of Days on Market for detached homes decreased from 30 in October to 22 in November. Attached homes sold in November were on the market for a median number of 29 days.
Inventory: Inventory for both detached and attached homes in Carlsbad decreased over 10% between early November and early December.
Here’s how the inventory has changed since the beginning of 2018. Current inventory for detached homes in Carlsbad is back down to early 2018 levels.
Encinitas/Cardiff-by-the-Sea
November Sales: The median sales price for detached homes in Encinitas decreased almost 11%, from a high of $1,515,000 in October to $1,350,000 in November. At the same time, the median sales price for attached homes decreased 17%, from $760,000 in October to $630,000 in November.
Days on Market: Most homes in Encinitas are selling within about 3 weeks. The median number of days on market in November was 23 for detached homes, down from 27 in October. Attached homes sold in November were on the market for a median number of 16 days, down from 22 in October.
Inventory: inventory levels decreased over 15% between early November and early December. Encinitas/Cardiff inventory is back down to early spring levels.
San Marcos
November Sales: The median sales price for detached homes in San Marcos increased 3%, from $650,000 in October to $674,900 in November. At the same time, the median sales price for attached homes decreased over 11%, from $462,500 in October to $408,180 in November.
Days on Market: Detached homes in San Marcos took more time to sell in November than in October. The median number of days on market went up from 16 in October to 25 in November.
Inventory: Total San Marcos inventory dropped over 16% between early November and early December. The drop brings us down to spring 2018 levels.
Vista
November Sales: The median sales price for detached homes in Vista reached a new high of $600,000 in November. The median sales price for attached homes increased 16%, from $372,500 in October to $433,000 in November.
Days on Market: For November sales, most Vista homes sold in less than 3 weeks. The time it took to sell a detached home in November was 19 days. The number of days on market for November attached home sales was 14 days.
Inventory: In Vista, inventory for both detached and attached homes has decreased 11% between early November and early December. The inventory in Vista hasn’t been this low since spring 2018.
Oceanside
November Sales: The median sales price for detached homes in Oceanside reached a 2019 high of $605,750 in November, beating October’s record of $600,000. At the same time, the median sales price for attached homes increased 4%, from $370,000 in October to $385,000 in November.
Here’s how sales prices of Oceanside detached homes have changed over the past year.
Days On Market: For November sales, most Oceanside homes sold in less than 3 weeks. The median number of days on market for detached home sales increased from 15 in October to 18 in November. The median number of days on market for attached home sales increased from 19 in October to 20 in November.
Inventory: In Oceanside, inventory for detached homes decreased almost 16% between early November and early December. We are at the lowest levels for all of 2019.
Escondido
November Sales: The median sales price for detached homes decreased 5%, from the high of $600,000 in October to $570,000 in November. The median sales price for attached homes decreased slightly, from $356,000 in October to $351,000 in November.
Here’s how sales prices of Escondido detached homes have changed over the past year.
Days on Market: Homes also took less time to sell in November, compared to October. The median number of days on market for both detached and attached homes in November was 22.
Inventory: In Escondido, inventory dropped over 15% between early October and early November, to the lowest levels of 2019.
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, Vista, Oceanside and Escondido.
Download – December 2019 North County San Diego Real Estate Market Report
Solar Rebates – 26% Federal Tax Credit Available through 2020
The 30% Federal Tax Credit will taper down to a 26% Federal Tax Credit on January 1, 2020. Federal tax code will allow for a one-time 26% Residential Energy Credit to purchase home solar photovoltaic systems. The credit may include any repairs necessary to install the panels, including roofing repairs and shade tree removal. Check with your tax professional. (This incentive will taper down to 10% by 2022.)
For more information, read my Solar for Homeowners article series.
2020 Mortgage Limits
Effective January 1, 2020, the 2020 mortgage limit for conventional and FHA loans in San Diego County is currently $701,500. In addition, the conforming loan limit has increased to $510,400. As a result, loans at or below this amount usually offer the lowest interest rates.
Loans between $510,400 and $701,500 are called super conforming, or high balance loans. Any loans above $701,500 are jumbo loans.
Starting in 2020, there will be no mortgage limit for VA loans. The lender will determine a VA borrower’s maximum loan amount.
Interest Rates
Interest rates are still at multi-year lows. As a result, with excellent credit, fixed mortgage rates for 30-year terms hover around 3.625% for conventional loans. VA and FHA loans enjoy slightly lower rates, closer to 3.5%. Read more about how low interest rates help you.
Another great benefit to home buyers will small down payments is LPMI rates. This stands for “lender paid mortgage insurance.” The LPMI rates are very low right now. Recently, I represented a family that paid only 5% down. Instead of paying monthly mortgage insurance, they locked in a slightly higher fixed rate on their mortgage. While LPMI rates were usually around 5%, their rate was only 4%. LPMI rates are usually available to borrowers with good to excellent credit scores. Read more about how low interest rates help you.
Above all, 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. In addition, VA Loan Programs offer $0 down payment mortgages to eligible military active duty and veterans, with no monthly mortgage insurance. On the other hand, conventional loans are available starting at only 3% down payment, and some of these conventional loans are available with no monthly mortgage insurance.
Moreover, all of these loan programs can be used for either 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 to remove your lawn – take advantage before it runs out! As a result of the programs, I was paid $2.75 per square foot to replace my turf grass with native landscaping. To learn more, 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. In addition, 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. In addition, some programs can be layered on top of each other, to maximize your benefit.
Start by using the California Association of REALTORS® Down Payment Resource Tool to check all available programs. Meanwhile, here are links to my articles about some popular down payment programs:
- CalHFA Down Payment Assistance – deferred loans for first-time home buyers (if you 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
UPDATE: Effective 2020, there is a new, no-cost online home buyer workshop. This new tutorial is a comprehensive homeownership education course. CreditSmart® Homebuyer U offers six modules to promote education, homebuyer preparedness, and financial management.
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, which can give you the true cost of selling a home.
You can also use my Seller Net Proceeds Worksheet, to estimate your bottom line. Secondly, you can also read about the seller disclosure process. Finally, if you need to sell one home before you can 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
To begin with, if you’re thinking of buying a home, use my Cost to Buy a House Worksheet and my Monthly Housing Costs Worksheet. Secondly, you can also estimate your Mortgage Approval Amount. Finally, learn more about the Cost to Buy a House and the Cost to Own a Home. On the other hand, if you are a cash buyer, read about Closing Costs for Cash Buyers.
Meanwhile, if you need funds for the down payment, read about Down Payment Funding Options.
If you’re interested in buying a fixer property, you can consider a Renovation Loan. Renovation loans finance both property and renovations, in one single mortgage payment. For example, renovation loans can be used to finance energy upgrades and fireproofing upgrades, such as insulation, solar panels, and electric heat pump water heaters. Most importantly, read about 7 Ways to Finance Energy Upgrades before you invest in energy efficiency.
Finally, 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.
Any questions? Would you like market data for San Diego areas not included in my Real Estate Market Report? Send me a message.
