What’s Happening in the North County San Diego Real Estate Market?
The new year is usually the low point for housing inventory. As of January 4, inventory had gone down from mid-December. On the other hand, as you can see from the charts below, it’s still much higher than January 18 inventory levels. In addition, we expect more homes to be listed on the market throughout the spring/summer season.
Another trend we have seen throughout the end of 2018 is that homes are taking longer to sell. As a result, the number of days on market has gradually increased since the summer. For instance, the average home seller will have their house on the market for about one month before they accept an offer.
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Carlsbad
In Carlsbad, early January inventory for both detached and attached homes was down 14% from late December. At the same time, the median sales price for detached homes went down 2%, from $1,044,000 in November to $1,018,500 in December. On the other hand, the median sales price for attached homes increased 12%, from $525,000 in November to $590,000 in December. Finally, listings are taking longer to sell: the median number of days on market for detached homes increased from 23 in November to 32 in December.
Over the past 12 months, sales prices for detached homes gradually increased throughout 2018.
Here’s how inventory changed throughout last year for detached homes in Carlsbad. Inventory peaked at the end of the summer. Moreover, 2019 started with over 50% more listings than the year prior.
Encinitas/Cardiff-by-the-Sea
In Encinitas, inventory for both detached and attached homes, increased by 4%. In addition, the median sales price for detached homes increased 12%, from $1,300,000 in November to $1,460,000. (Note that the median sales price in October just higher than December, at $1,480,000.) Similarly, the median sales price for attached homes increased 10%, from $659,500 in November to $730,000 in December. Most homes in Encinitas were sold within 3 weeks.
We have seen a marked increase in sales prices in the Encinitas/Cardiff area. For example, there’s a 23% increase between the median sales price of $1,185,000 in January 2018, and the $1,460,000 in December 2018.
Inventory in Encinitas/Cardiff peaked near the end of summer, and then dropped by the end of the year. At the same time, inventory is still 30% higher than one year ago.
San Marcos
In San Marcos, inventory decreased 6% between late December and early January. At the same time, the median sales price for detached homes increased 5%, from $680,000 in November to $717,450 in December. On the other hand, the median sales price for attached homes went down 2%, from $447,000 in November to $434,500 in December. Finally, properties sat on the market longer – 31 days for detached homes, and 40 days for attached homes.
San Marcos prices held steady throughout 2018. The median price spiked in September, at $733,750.
Inventory in San Marcos has more than doubled since January 2018.
Vista
In Vista, inventory for both detached and attached homes went down 7% between late December and early January. The median sales price for detached homes increased by only $5,000 between November and December. On the other hand, the median sales price for attached homes decreased 15%, from $351,500 in November to $297,000 in December. Finally, the number of days on market almost doubled between November and December – most homes sold within 35 days.
Price levels remained constant throughout 2018. Coincidentally, the median sales price for detached homes was the same $554,000 in both January and December 2018.
Inventory in Vista increased by 52% between January 2018 and January 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, and Vista.
Download – North County San Diego Real Estate Market Report January 2019
Solar Rebates – 30% Federal Tax Credit Available through 2019 – ONLY ONE YEAR LEFT!
THERE’S ONLY ONE YEAR LEFT FOR THE 30% FEDERAL TAX CREDIT! Federal tax code allows for a one-time 30% Residential Energy Credit to purchase home solar photovoltaic systems. In addition, 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% until 2022. For more information, read my Solar for Homeowners article series.
2019 Mortgage Limits
2019 mortgage limits were recently announced. The mortgage limit for conventional, VA, and FHA loans in San Diego County is $690,000. In addition, the conforming loan limit increased to $484,350. As a result, loans at or below this amount usually offer the lowest interest rates.
Loans between $484,350 and $690,000 are called super conforming, or high balance loans. On the other hand, any loans above $690,000 are jumbo loans.
Interest Rates
After a steady increase all year, interest rates have recently dropped. With excellent credit, fixed mortgage rates for 30-year terms hover around 4.5% for conventional loans. VA and FHA loans have slightly lower rates, closer to 4.25%. 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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2018 Tax Season is Here
The newly revised 2018 tax code contains some important changes for homeowners. Read my article about the 2018 tax code, and most importantly, talk to your CPA about how deductions have changed for 2018.
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! I was recently 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.
Most importantly, now is the best time to trim trees – get tree trimming scheduled before the spring!
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
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. 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. These tools can help you budget and plan for the future. 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.
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 can consider a Renovation Loan. Renovation loans finance both the property and the 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.
Any questions? Send me a message.
