Update: The Real Estate Market in North County San Diego
Data Source: Mylene’s Real Estate Market Report uses data from CRMLS for 2018-2022 and represents properties listed or sold by various brokers.
Housing Inventory
You can see in the charts below, that the inventory in early January is even lower than in December. Inventory tends to drop during the holiday season, but you can see how it’s unusually low at the very beginning of 2022.
We need more sellers, of course. But, many potential sellers are waiting for more inventory before listing their homes. Whether selling in order to upsize or downsize, they are waiting to sell until they know that they will be able to find a replacement home.
Days on Market
Because the inventory is so low, homes are selling quickly. For December 2021 sales, most detached homes went into escrow within 9 days.
Prices – New sales price records for Vista and Oceanside
Throughout 2021, prices kept increasing throughout San Diego County. In North County, December set new price records for attached home sales in Vista, and detached home sales in Oceanside.
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Carlsbad
December Sales: The median sales price for detached homes in Carlsbad for December sales was $1,505,000, down from November’s all-time record of $1,639,000. At the same time, the median sales price for attached homes was $778,500, down from September’s record of $809,005.
Days on Market: Most homes sell within two weeks. The median number of days on market for detached homes sold in December was 7, up from 5 in November. Attached homes sold in November were on the market for a median number of 8 days, down from 6 in November.
Inventory: Inventory for both detached and attached homes in Carlsbad dropped 40% between early December and early January.
Here’s how the inventory has changed since 2018. You can see that in September 2018, there were 240 detached homes for sale. On January 4, there were only 15. That is 1/16, yes, ONE-SIXTEENTH, of the inventory from September 2018.
Encinitas/Cardiff-by-the-Sea
December Sales: The median sales price for detached homes in Encinitas in December was $2,230,000, not quite reaching November’s historic high of $2,300,000. The median sales price for attached homes in December was $1,110,000, lower than November’s all-time record of $1,200,000.
Days on Market: The median number of days on market for December sales was 10 for detached homes, and 8 for attached homes.
Inventory: Total inventory levels for Encinitas and Cardiff homes decreased 32% between early December and early January. You can see in the chart below, how it compares to the past 3 years of inventory. Our current inventory of detached homes for sale is less than half of what we had one year ago.
San Marcos
December Sales: The median sales price for detached homes in San Marcos was $950,000, below November’s all-time high of $997,575. The median sales price for attached homes was $547,500, below September and October’s all-time high of $637,000.
Days on Market: The median number of days on market was only 7 days for detached homes, and 5 days for attached homes.
Inventory: Total San Marcos inventory decreased 42% between early December and early January. Today’s inventory levels for detached homes are almost one-third of what we had just one year ago.
Vista
December Sales: The median sales price for detached homes in Vista was $820,000, below November’s record of $865,000. The median sales price for attached set a new record of $580,000, beating October’s high of $535,000.
Days on Market: The median number of days on market for detached homes was 9 days, and for attached homes was 5 days.
Inventory: In Vista, inventory for detached and attached homes decreased 47% between early December and early January. Detached inventory is only ONE-SIXTH of what we had two years ago.
Oceanside – NEW RECORD – $835,950
December Sales: The median sales price for detached homes in Oceanside in December reached an all-time high of $835,950, beating November’s all-time record of $825,000. The median sales price for attached homes in December was $538,000, below November’s record of $565,000.
Here’s how sales prices of Oceanside detached homes have changed since January 2019.
Days On Market: For December sales, detached homes sold within a median number of 6 days, and attached homes sold within a median number of 7 days.
Inventory: In Oceanside, inventory levels dropped 43% between early December and early January. Inventory levels are one half of what we had two years ago.
Escondido
December Sales: The median sales price for detached homes was $792,500, down from May’s record high of $841,495. The median sales price for attached homes in December was $439,000, down from April’s record of $460,000.
Here’s how sales prices of Escondido detached homes have changed since January 2019.
Days on Market: The median number of days on market for detached home sales was 9. The median number of days on market for attached homes sold in December was 5.
Inventory: In Escondido, total inventory decreased 25% between early December and early January. You can see in the chart below that detached inventory has dropped to less than one-third of what we had two years ago.
Consult the North County San Diego Real Estate Market Report
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 2022
Solar Rebates – 26% Federal Tax Credit Available through 2022
Are you considering adding solar to your roof? Federal tax code allows 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.
The 30% Federal Tax Credit tapered down to a 26% Federal Tax Credit on January 1, 2021. This incentive will taper down to 22% in 2023.
For more information, read my Solar for Homeowners article series.
2022 Mortgage Limits
The 2022 mortgage limit for conventional and FHA loans in San Diego County increased significantly in January. The conforming loan limit increased from $548,250 to $647,200. The high balance (non-jumbo) loan limit for San Diego County increased from $753,250 to $879,750. As a result, loans at or below this amount usually offer the lowest interest rates.
Loans between $647,000 and $879,750 are super conforming, or high balance loans. Any loans above $879,750 are jumbo loans.
Since January 1, 2020, there is no mortgage limit for VA loans. The lender will determine a VA borrower’s maximum loan amount. VA borrowers are no longer required to bring in a specific down payment amount; the loan program is determined solely by the lender.
Interest Rates
Interest rates have remained low all year, although they trended up. With excellent credit, fixed mortgage rates for 30-year terms hover around 3.25% for conventional loans. VA and FHA loan programs usually offer lower rates, closer to 2.75%.
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 3.5% 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, depending on purchase price, 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 WaterSmart 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.
