What’s Happening in the North County San Diego Real Estate Market?
Source: Mylene’s Real Estate Market Report uses data from CRMLS for 2019 and 2020 and represents properties listed or sold by various brokers.
Inventory
North County inventory has been declining all season. We saw another big decrease between early December and early January:
- Carlsbad: 18% down
- Encinitas/Cardiff: 18% down
- San Marcos: 21% down
- Vista: 16% down
- Oceanside: 17% down
- Escondido: 23% down
Days on Market
The median number of days on market didn’t change much between November and December sales. Across North County, most detached homes are selling within 4 weeks.
Prices
Prices have been stable all year. Between November and December, final sales prices decreased in some areas, and increased in others. It’s also worth noting that San Marcos had a record median sales price last month.
Looking at the charts below, we can see how large increases or decreases usually correct themselves within a month or two.
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Carlsbad
December Sales: The median sales price for detached homes in Carlsbad decreased 5%, from a high of $1,143,000 in November to $1,085,000 in December. At the same time, the median sales price for attached homes decreased 4%, from $617,000 in November to $565,000 in December.
Days on Market: The median number of Days on Market for detached homes decreased from 22 in November to 20 in December. Attached homes sold in December were on the market for a median number of 25 days.
Inventory: Inventory for both detached and attached homes in Carlsbad decreased 18% between early December and early January.
Here’s how the inventory has changed since 2018. Current inventory for detached homes in Carlsbad is back down to early 2018 levels.
Encinitas/Cardiff-by-the-Sea
December Sales: The median sales price for detached homes in Encinitas increased 7%, from $1,350,000 in November to $1,455,000 in December. At the same time, the median sales price for attached homes increased 13%, from $630,000 in November to $715,000 in December.
Days on Market: Most homes in Encinitas are selling within a month. The median number of days on market in December was 27 for detached homes, down from 23 in November. Attached homes sold in December were on the market for a median number of 7 days, down from 16 in November.
Inventory: inventory levels decreased over 18% between early December and early January. Encinitas/Cardiff inventory is back down to early 2019 levels.
San Marcos
December Sales: The median sales price for detached homes in San Marcos increased almost 8%, from $674,900 in November to a new high of $728,000 in December. At the same time, the median sales price for attached homes increased 17%, from $408,180 in November to $480,000 in December.
Days on Market: Detached homes in San Marcos took more time to sell in December than in November. The median number of days on market went up from 25 in November to 29 in December.
Inventory: Total San Marcos inventory dropped 21% between early December and early January. The drop brings it down to spring 2018 levels.
Vista
December Sales: The median sales price for detached homes in Vista decreased 9% from $600,000 in November to $544,000 in December. The median sales price for attached homes decreased 14%, from $433,000 in November to $370,000 in December.
Days on Market: For December sales, most Vista homes sold in less than a month. The time it took to sell a detached home in December was 16 days. The number of days on market for November attached home sales was 38 days.
Inventory: In Vista, inventory for both detached and attached homes has decreased 16% between early December and early January. There are fewer homes for sale than there have been in recent history.
Oceanside
December Sales: The median sales price for detached homes in Oceanside decreased 4%, from the historical high of $605,750 in November to $578,500 in December. At the same time, the median sales price for attached homes increased 2%, from $385,000 in November to $393,000 in December.
Here’s how sales prices of Oceanside detached homes have changed over the past year.
Days On Market: For December sales, detached Oceanside homes sold in less than 3 weeks. The median number of days on market for detached home sales increased from 18 in November to 20 in December. The median number of days on market for attached home sales increased 20 in November to 27 in December.
Inventory: In Oceanside, inventory for detached homes decreased 17% between early December and early January. This is half the inventory from only one year ago.
Escondido
December Sales: The median sales price for detached homes slightly increased, from $570,000 in November to $575,497 in December. The median sales price for attached homes decreased almost 9%, from $351,000 in November to $325,000 in December.
Here’s how sales prices of Escondido detached homes have changed over the past year.
Days on Market: Homes also took more time to sell in December, compared to November. The median number of days on market for detached homes increased from 22 in November to 28 in December.
Inventory: In Escondido, inventory dropped 23% between early December and early January, down over 50% from only 6 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 January 2020
Solar Rebates – 26% Federal Tax Credit Available through 2020
The 30% Federal Tax Credit tapered down to a 26% Federal Tax Credit on January 1, 2020. 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 10% by 2022.)
For more information, read my Solar for Homeowners article series.
2020 Mortgage Limits
Effective January 1, 2020, the 2020 mortgage limit for conventional and FHA loans in San Diego County is $701,500. In addition, the conforming loan limit has increased to $510,400. As a result, loans at or below this amount usually offer the lowest interest rates.
Loans between $510,400 and $701,500 are called super conforming, or high balance loans. Any loans above $701,500 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 multi-year lows. As a result, with excellent credit, fixed mortgage rates for 30-year terms hover around 3.625% for conventional loans. VA and FHA loans enjoy slightly lower rates, closer to 3.5%. Read more about how low interest rates help you.
Another great benefit to home buyers will small down payments is LPMI rates. This stands for “lender paid mortgage insurance.” The LPMI rates are very low right now. Recently, I represented a family that paid only 5% down. Instead of paying monthly mortgage insurance, they locked in a slightly higher fixed rate on their mortgage. While LPMI rates were usually around 5%, their rate was only 4%. LPMI rates are usually available to borrowers with good to excellent credit scores. Read more about how low interest rates help you.
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
UPDATE: Effective 2020, there is a new, no-cost online home buyer workshop. This new tutorial is a 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.
