What’s Happening in the North County San Diego Real Estate Market?
Source: Mylene’s Real Estate Market Report uses data from CRMLS for 2018-2020 and represents properties listed or sold by various brokers.
COVID-19 Update
In spite of all the not-so-great news lately, there is one thing to appreciate: real estate is considered an essential service! This means that people who need to buy and sell homes can still do so. Home inspectors, appraisers, title and escrow companies, lenders, and real estate agents and brokers are staying busy during the shutdown.
The biggest challenge facing real estate salespeople is the lack of inventory. As you can see in the charts below, the inventory keeps dropping. There are many buyers out searching for homes, and finding themselves competing with offers. On the other side, sellers are finding that their homes are selling in less time, and often for above asking price.
Inventory
North County inventory keeps going down! There are lots of buyers competing for homes, and not enough sellers to keep up with the demand. You can see in the charts below that inventory has dropped to early 2018 levels in many areas.
Days on Market
The median number of days on market has kept steady throughout the year. Most homes sell within three weeks.
Prices
Prices haven’t changed dramatically in 2020. We have seen new all-time highs this year, but no drastic increases or decreases.
Looking at the charts below, we can see how any large changes in median prices usually correct themselves within a month or two.
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Carlsbad
June Sales: The median sales price for detached homes in Carlsbad was $1,081,000. At the same time, the median sales price for attached homes was $572,000. Both of these figures are 8% down from May sales.
Days on Market: The median number of Days on Market for detached homes sold in June was 12. Attached homes sold in June were on the market for a median number of 29 days.
Inventory: Inventory for both detached and attached homes in Carlsbad decreased 25% between early June and late July.
Here’s how the inventory has changed since 2018. Current inventory for detached homes in Carlsbad is back down to January levels.
Encinitas/Cardiff-by-the-Sea
June Sales: The median sales price for detached homes in Encinitas was $1,634,000, which was a 28% increase over May sales. At the same time, the median sales price for attached homes went down 6%, to $698,500.
Days on Market: The median number of days on market for June sales was 9 for detached homes, and 27 for attached homes.
Inventory: Inventory levels for Encinitas/Cardiff homes decreased 13% between early June and late July.
San Marcos
June Sales: The median sales price for detached homes in San Marcos was $710,000. At the same time, the median sales price for attached homes was $480,716.
Days on Market: Detached homes in San Marcos took less time to sell in June than earlier in the year. The median number of days on market was only 10 for detached homes, and 12 for attached homes.
Inventory: Total San Marcos inventory decreased 27% between early June and late July.
Vista
June Sales: The median sales price for detached homes in Vista was $600,000. The median sales price for attached homes was $455,468.
Days on Market: For June sales, most detached homes in Vista sold in less than two weeks. The median number of days on market for April detached home sales was only 13 days. On the other hand, attached homes were on the market for a median number of 33 days.
Inventory: In Vista, inventory for detached and attached homes decreased 24% between early June and late July.
Oceanside
June Sales: The median sales price for detached homes in Oceanside was $610,000. The median sales price for attached homes was $404,500.
Here’s how sales prices of Oceanside detached homes have changed over the past year.
Days On Market: For June sales, detached Oceanside homes sold within a median number of 14 days. The median number of days on market for attached home sales was 21.
Inventory: In Oceanside, inventory for detached homes decreased 17% between early June and late July.
Escondido
June Sales: The median sales price for detached homes was $585,000. The median sales price for attached homes was $375,000.
Here’s how sales prices of Escondido detached homes have changed over the past year.
Days on Market: Most Escondido homes usually sell within 2 weeks. The median number of days on market for detached homes sold in June was 12. The median number of days on market for attached homes was 19.
Inventory: In Escondido, inventory decreased 15% between early June and late July.
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 – July 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 recently hit all-time lows. As a result, with excellent credit, fixed mortgage rates for 30-year terms hover around 2.875% for conventional loans. VA and FHA loans enjoy slightly 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 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.
