If you’re planning to buy or sell North County San Diego real estate, start keeping track of market trends. My real estate market report will inform you about market conditions in Coastal North County San Diego, and how they have changed over the past year.
Homeowners: don’t forget to get your free rain barrel, and to schedule your tree trimming before spring.
What’s Happening in the North County San Diego Real Estate Market?
Buyer activity continues to slow down, more than we usually expect for the season. The inventory of homes for sale has also decreased. There are fewer homes in escrow now than one month ago. The reduced buying activity has forced many home sellers in San Marcos and Vista to reduce their prices.
On the other hand, property values in coastal areas, such as Carlsbad, Encinitas, Leucadia, and Cardiff-by-the-Sea continue to increase slightly, and they are going into escrow more quickly than last month. Most listings have accepted offers within a month. There is a consistently high demand for coastal real estate.
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Interest Rates
Fixed 30 year mortgage rates continue to hover around the high 3%/low 4% range. In late November, one of my clients locked in an interest rate of 3.75% for a fixed-rate VA loan. VA and FHA rates tend to be lower than conventional loan rates.
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Mortgage Limits in 2016 – Conventional, VA, FHA
Effective January 1, 2016, the mortgage limit for conventional, FHA, and VA loans in San Diego County has increased to $580,750.
Loan Program Update
FHA Loan Programs provide a way to buy a home with only 3 1/2% down payment. VA Loan Programs continue to offer $0 down payment mortgages to eligible military active duty and veterans. Conventional loans are available with only 3% down payment. All of these programs can be used for new purchases, or for refinancing.
If you’re interested in financing energy upgrades, such as solar panels, there are a number of options to choose from. You can read my article about PACE financing to learn about PACE, and other options, such as Energy Efficient Mortgages.
SOLAR UPDATE: The 30% tax credit will not expire this year! 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. If you’re interested in going solar, read my Solar for Homeowners article series.
Down Payment Assistance
The California Housing Finance Agency (CalHFA) 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.
What’s Next?
Selling Your Home
Are you curious about how much your home is worth? Are you considering buying a home in a certain neighborhood? If you’re interested in a particular property or area, contact me for a specific market analysis. I also provide information about seller closing costs, to give you a good idea of the true cost of buying or selling real estate, depending on the property.
If you’re thinking of selling, you can also use my Seller Net Proceeds Worksheet, to estimate your bottom line. You can also read about the seller disclosure process.
Buying a Home
If you’re thinking of buying, you can use my Cost to Buy a House Worksheet and my Monthly Housing Costs Worksheet, to help you budget and plan for the future. I recently created a worksheet to help you estimate your Mortgage Approval Amount. You can also read 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 Preapproval, 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. These 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.
In 2015, the Consumer Financial Protection Bureau (CFPB) released a new toolkit to guide consumers through the process of shopping for a mortgage and buying a home. The Home Loan Toolkit is a helpful tool to help you plan your purchase. The CFPB also has a website called “Owning a Home,” full of online tools and resources for prospective home buyers.
Effective October 3, 2015, the loan disclosure forms have changed nationwide. These changes are designed to help home buyers clearly understand the terms of the mortgage and the escrow and other closing costs. The CFPB offers guides to the Loan Estimate and the Closing Disclosure.
Any questions? Send me a message.
