This February 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.
What’s Happening in the North County San Diego Real Estate Market?
Coastal North County real estate, no surprise, is still high in demand. Inventory has increased some since early January, thankfully. February is usually the dip before the high spring season, but we haven’t witnessed much decrease in prices from last summer.
Home sellers continue to enjoy a seller’s market. Homes that are well-marketed and priced appropriately continue to sell very quickly, many with multiple offers.
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In Carlsbad, inventory has increased from the beginning of the year, with no change in asking prices. Over twice as many homes were listed in January than in December. Final sales prices for detached homes did not change between December and January, and are still lower than final sales prices in July 2016.
In Encinitas, the inventory is only slightly higher from early January. More homes were listed in January than in December, and fewer homes sold in January than in December. January 2017 final sales prices were actually lower than January 2016 final sales prices.
In San Marcos, inventory has increased from early January. Compared to early January, today’s asking prices are higher for detached homes, and lower for attached homes. Over twice as many homes were listed in January than in December. January final sales prices were significantly higher than in December.
In Vista, the inventory is only slightly higher from early January, and prices are similar. January final sales prices were slightly lower than in December. Homes that sold in January were on the market about one week less than homes that sold in December. The median sales price for detached homes in January 2017 is the same as in December 2015: $475,000.
In all four areas, the median number of days on market for all detached sales ranged between 21 and 53, and for attached sales, between 10 and 20. In other words, it usually takes about a month to sell a detached home, and about two weeks to sell an attached home.
Interest Rates
Fixed mortgage rates continue to hover above 4% for conventional loans. VA and FHA loans have enjoyed lower rates, mostly at or below 4%.
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Mortgage Limits in 2017 – Conventional, VA, FHA
Since January 1, 2017, the mortgage limit for conventional, VA, and FHA loans in San Diego County is $612,950. The conforming loan limit is now $424,100. Loans at or below this amount usually offer the lowest interest rates.
Loans between $424,100 and $612,950 are super conforming loans. Any loans above $612,950 are 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 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.
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.
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 February 2017
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.
