What’s Happening in the North County San Diego Real Estate Market?
Data Source: Mylene’s Real Estate Market Report uses data from CRMLS for 2018-2021 and represents properties listed or sold by various brokers.
COVID-19 Update
The pandemic has helped to create a market with very few sellers, and very competitive buyers. We continue to follow safety protocols, such as wearing masks and using hand sanitizer. There are no public open houses at this time. To help limit exposure, only buyers and their agents can attend showings.
Many homeowners have received some financial assistance through COVID-19 assistance programs and the California property tax penalty cancellation request program. FHFA is extending the foreclosure moratorium through March 31, 2021. In addition, the forebearance allowance period is now 15 months.
Inventory
The biggest challenge facing buyers continues to be a lack of inventory. As you can see below, the inventory keeps dropping. There are many buyers out searching for homes, and finding themselves competing with each other. Over the past few weeks, more buyers are offering prices significantly higher than asking, and removing contingencies to make their offers more attractive.
On the other side, many sellers find that their homes are selling quickly, and at a much higher price than expected. Many investors have noticed the increase in value of their rental properties, and are deciding to sell this year.
Days on Market
Properties with an appropriate list price usually receive offers within one week. For January 2021 sales, most homes went into escrow within 11 days.
Prices
Throughout 2020, prices increased consistently. January 2021 median sales prices for detached homes set new records in Carlsbad and Encinitas.
Looking at the charts below, we can see that any sharp changes in median prices usually correct themselves within a month or two.
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Carlsbad
January Sales: The median sales price for detached homes in Carlsbad was a new all-time high of $1,242,500. At the same time, the median sales price for attached homes was $619,000 in January.
Days on Market: The median number of Days on Market for detached homes sold in January was 12, up from 6 in December. Attached homes sold in January were on the market for a median number of 21 days, down from 16 in December.
Inventory: Inventory for both detached and attached homes in Carlsbad decreased 21% between mid-January and mid-February.
Here’s how the inventory has changed since 2018. Current inventory for detached homes in Carlsbad is half of how many were available only four months ago.
Encinitas/Cardiff-by-the-Sea
January Sales: The median sales price for detached homes in Encinitas reached an all-time high of $2,052,500 in January. The median sales price for attached homes was $735,000 in January.
Days on Market: The median number of days on market for January sales was 16 for detached homes, and 10 for attached homes.
Inventory: Inventory levels for Encinitas/Cardiff homes hasn’t changed much since the beginning of the year. Inventory continues to stay low, limiting choices for buyers.
San Marcos
January Sales: The median sales price for detached homes in San Marcos was $750,000 in January. At the same time, the median sales price for attached homes was $515,000.
Days on Market: The median number of days on market was only 5 for detached homes, and only 6 for attached homes.
Inventory: Total San Marcos inventory stayed the same between mid-January and mid-February. Current inventory levels for detached homes is less than half of what was available only 4 months ago.
Vista
January Sales: The median sales price for detached homes in Vista was $675,000. This is slightly down from the all-time high in November. The median sales price for attached homes was $440,000.
Days on Market: The median number of days on market for January detached home sales was 7 days. Attached homes were also on the market for a median number of 11 days.
Inventory: In Vista, inventory for detached and attached homes decreased 35% between mid-January and mid-February. Current inventory is less than half of what was available only five months ago.
Oceanside
January Sales: The median sales price for detached homes in Oceanside in January was $660,000. This is slightly down from the all-time high of $669,910. The median sales price for attached homes was $415,000.
Here’s how sales prices of Oceanside detached homes have changed over the past two years.
Days On Market: For January sales, detached Oceanside homes sold within a median number of 6 days. The median number of days on market for attached home sales was 10.
Inventory: In Oceanside, inventory for detached homes decreased 22% between mid-January and mid-February. You can see below how inventory has decreased over time.
Escondido
January Sales: The median sales price for detached homes decreased from the all-time high in October of $680,000, to $650,000 in January. The median sales price for attached homes was $317,000 in January.
Here’s how sales prices of Escondido detached homes have changed over the past two years.
Days on Market: Most Escondido homes sell within 2 weeks. The median number of days on market for detached homes sold in January was 8. The median number of days on market for attached homes was 11.
Inventory: In Escondido, total inventory decreased 26% between mid-January and mid-February. Today’s inventory of detached homes is less than half of how many homes were available eight months ago.
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 – North County San Diego Market Report – February 2021
Solar Rebates – 26% Federal Tax Credit Available through 2022
The 30% Federal Tax Credit tapered down to a 26% Federal Tax Credit on January 1, 2021. 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 22% in 2023.
For more information, read my Solar for Homeowners article series.
2021 Mortgage Limits
The 2021 mortgage limit for conventional and FHA loans in San Diego County is $753,250. In addition, the conforming loan limit has increased to $548,250. As a result, loans at or below this amount usually offer the lowest interest rates.
Loans between $548,250 and $753,250 are called super conforming, or high balance loans. Any loans above $753,250 are jumbo loans.
As of January 1, 2020, there is no mortgage limit for VA loans. The lender will determine a VA borrower’s maximum loan amount.
Interest Rates
Interest rates are still at all-time lows. As a result, with excellent credit, fixed mortgage rates for 30-year terms hover around 2.625% for conventional loans. VA and FHA loans enjoy slightly lower rates, closer to 2.25%.
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 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
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 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.
