What’s Happening in the North County San Diego Real Estate Market?
Inventory
Inventory has moderately increased in most markets between early June and mid-July.
Days on Market
The number of days on market has slightly increased since last month. Even so, properties are taking less time to sell than they did earlier this year. Most homes are selling in about 2 weeks.
Prices
Prices have been stable all year. Between June and July, we saw an increase in final sales prices.
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Carlsbad
In Carlsbad, mid-July inventory for both detached and attached homes was almost identical to early June. The median sales price for detached homes increased only slightly, from $1,015,000 in May to $1,019,000 in June.
Median sales prices for attached homes increased 5%, from $540,000 in May to $570,000 in June. The median number of Days on Market for both attached and detached homes sold in June was 15 days.
Here’s how sales prices for Carlsbad detached homes have changed over the past year.
Here’s how inventory has changed since the beginning of 2018. Inventory for detached homes in Carlsbad peaked at the end of last summer, but current levels are still higher than one year ago.
Encinitas/Cardiff-by-the-Sea
In Encinitas, inventory levels increased by 15% between early June and mid-July. At the same time, the median sales price for detached homes increased by 11%, from $1,321,000 in May to $1,475,000 in June. The median sales price for attached homes increased by only 2%, from $695,000 in May to $715,000 in June.
Detached homes in Encinitas are selling more quickly than earlier this year. The median number of days on market in May was only 15 for detached homes, and 27 for attached homes.
Inventory in Encinitas/Cardiff has reached a new high for 2019 (and 2018).
San Marcos
In San Marcos, total inventory increased by 13% between early June and mid-July. At the same time, the median sales price for detached homes increased by 5%, from $679,000 in May to $719,000 in June. Sales prices for attached homes increased 18%, from $415,000 in May to $492,500 in June.
Homes in San Marcos sold more quickly in June than in May. The median number of days on market in May was only 12 for detached homes, and 15 for attached homes.
Inventory for detached homes in San Marcos has increased since the holidays, and is 29% higher than one year ago.
Vista
In Vista, inventory for both detached and attached homes has slightly increased between early June and mid-July. The median sales prices for detached homes increased 5%, from $530,000 in May to $558,750 in June. At the same time, the median sales price for attached homes decreased by 13%, from $418,750 in May to $364,000 in June.
The time it took to sell an attached home decreased for June sales – the median number of days on market for attached home sales was only 16 in June, compared to 24 in May. The median number of days on market for detached homes increased from 10 in May to 14 in June.
Inventory in Vista has increased since the beginning of the year.
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. Coming soon: Oceanside and Escondido data!
Download – July 2019 North County San Diego Real Estate Market Report
Solar Rebates – 30% Federal Tax Credit Available through December 31 – only 5 months left!
THE 30% FEDERAL TAX CREDIT ENDS THIS YEAR! Federal tax code currently 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% until 2022. For more information, read my Solar for Homeowners article series.
2019 Mortgage Limits
The 2019 mortgage limit for conventional, VA, and FHA loans in San Diego County is currently $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. Any loans above $690,000 are jumbo loans.
Interest Rates
Good news! Interest rates recently dropped to pre-2017 lows. As a result, with excellent credit, fixed mortgage rates for 30-year terms hover around 3.75% for conventional loans. VA and FHA loans enjoy slightly lower rates, closer to 3.5%.
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
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
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.
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.
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.
