Real Estate Market Report

North County San Diego Real Estate Market Report – December 2021

Update: The Real Estate Market in North County San Diego

Data Source: Mylene’s Real Estate Market Report uses data from CRMLS for 2018-2021 and represents properties listed or sold by various brokers.

Housing Inventory

As you can see in the charts below, the inventory is still very low, and it continues to drop as we reach the end of the year.

The biggest factor driving the market, as has been the case all year, is the dismally low supply. As I mentioned last month, buyers will stop bidding aggressively when the inventory increases, which would immediately disperse the demand.

We need more sellers, of course, but many potential sellers are waiting for more inventory before listing their homes. Whether selling to upsize or downsize, they don’t want to sell until they know they’ll be able to find a replacement home.

Days on Market

Because the inventory is so low, homes are selling quickly. For November 2021 sales, most detached homes went into escrow within 10 days.

Prices – New sales price records in 5 out of 6 cities

Throughout 2021, prices have kept increasing throughout San Diego County. In North County alone, November 2021 median sales prices set new records for detached homes in Carlsbad, Encinitas/Cardiff, San Marcos, Vista AND Oceanside.

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Carlsbad – NEW RECORD – $1,639,000

November Sales: The median sales price for detached homes in Carlsbad for November sales set a new record of $1,639,000, beating August’s all-time high of $1,600,000. At the same time, the median sales price for attached homes was $750,000, down from September’s record of $809,005.

Days on Market: Most homes sell within two weeks. The median number of days on market for detached homes sold in November was 5, down from 7 in October. Attached homes sold in November were on the market for a median number of 6 days, down from 12 in October.

Inventory: Inventory for both detached and attached homes in Carlsbad dropped 23% between early November and early December.

Here’s how the inventory has changed since 2018. Current inventory for detached homes in Carlsbad is only one-fifth of what we had two years ago. (!!!)


Encinitas/Cardiff-by-the-Sea – NEW RECORD – $2.3M

November Sales: The median sales price for detached homes in Encinitas in November reached a new historic high of $2,300,000, beating September’s all-time record of $2,065,250. The median sales price for attached homes in November also set a new record of $1,200,000, significantly higher than June’s all-time high of $1,019,000.

Days on Market: The median number of days on market for November sales was 6 for detached homes, and 10 for attached homes.

Inventory: Total inventory levels for Encinitas and Cardiff homes decreased 21% between early November and early December. You can see on the 2018-2021 chart how it compares to the past 3 years of inventory. Our current inventory of detached homes for sale is half of what we had one year ago.


San Marcos – NEW RECORD – $997,575 (almost $1M!)

November Sales: The median sales price for detached homes in San Marcos set another record of $997,575, beating August’s all-time high of $964,887. The median sales price for attached homes was $602,500, not quite matching September and October’s all-time high of $637,000.

Days on Market: The median number of days on market was only 7 days for detached homes, and 8 days for attached homes.

Inventory: Total San Marcos inventory decreased 28% between early November and early December. Today’s inventory levels for detached homes are half of what we had one year ago.


Vista – NEW RECORD – $865,000

November Sales: The median sales price for detached homes in Vista set a new record of $865,000, beating September’s record of $825,000. The median sales price for attached homes was $485,000, less than October’s high of $535,000.

Days on Market: The median number of days on market for detached homes was 9 days, and for attached homes was 7 days.

Inventory: In Vista, inventory for detached and attached homes decreased 10% between early November and early December. Detached inventory is a little higher than what we had one year ago.


Oceanside – NEW RECORD – $825,000

November Sales: The median sales price for detached homes in Oceanside in November reached an all-time high of $825,000, beating September’s all-time record of $814,500. The median sales price for attached homes in November set a new record of $565,000, beating October’s record of $530,181.

Here’s how sales prices of Oceanside detached homes have changed since January 2019.

Days On Market: For October sales, detached homes sold within a median number of 7 days, and attached homes sold within a median number of 6 days.

Inventory: In Oceanside, inventory levels dropped 7% between early November and early December.  Inventory levels are higher than at the end of 2020.


Escondido

November Sales: The median sales price for detached homes was $799,999, down from  May’s record high of $841,495. The median sales price for attached homes in November was $389,000, down from April’s record of $460,000.

Here’s how sales prices of Escondido detached homes have changed since January 2019.

Days on Market: The median number of days on market for detached home sales was 11. The median number of days on market for attached homes sold in November was 7.

Inventory: In Escondido, total inventory decreased 38% between early November and early December. You can see in the chart below that detached inventory has dropped to a fraction of what we had two years ago.


Consult the North County San Diego Real Estate Market Report

My Real Estate Market Report covers the areas of Carlsbad, Encinitas/Leucadia/Cardiff-by-the-Sea, San Marcos, Vista, Oceanside and Escondido.

Download – North County San Diego Market Report – December 2021

Solar Rebates – 26% Federal Tax Credit Available through 2022

Are you considering adding solar to your roof? Federal tax code allows 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.

The 30% Federal Tax Credit tapered down to a 26% Federal Tax Credit on January 1, 2021. This incentive will taper down to 22% in 2023.

For more information, read my Solar for Homeowners article series.

2022 Mortgage Limits

The 2022 mortgage limit for conventional and FHA  loans in San Diego County is increasing significantly in January. The conforming loan limit will increase from $548,250 to $647,200. The high balance (non-jumbo) loan limit for San Diego County will increase from $753,250 to $879,750. As a result, loans at or below this amount usually offer the lowest interest rates.

Starting in January, loans between $647,000 and $879,750 will be super conforming, or high balance loans. Any loans above $879,750 are jumbo loans.

Since January 1, 2020, there is no mortgage limit for VA loans. The lender will determine a VA borrower’s maximum loan amount. VA borrowers are no longer required to bring in a specific down payment amount; the loan program is determined solely by the lender.

Mortgage limits are announced in November for the following year.

Interest Rates

Interest rates have remained low all year, although they trended up. With excellent credit, fixed mortgage rates for 30-year terms hover around 3% for conventional loans. VA and FHA loan programs usually offer lower rates, closer to 2.5%.

The best interest rates are available to borrowers with excellent credit scores. Read more about how low interest rates help you save money.

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 3.5% 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, depending on purchase price, 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 WaterSmart 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:

Finally, you are invited to attend a no-cost online home buyer workshop. Freddie Mac provides this 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

My real estate market report can help you see how home values are changing throughout North County. Are you considering becoming a homeowner in this area?

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 insulationsolar 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.