Update: The Real Estate Market in North County San Diego
Data Source: Mylene’s Real Estate Market Report uses data from CRMLS for 2018-2021 and represents properties listed or sold by various brokers.
COVID-19 Update
Many homeowners have received some financial assistance through COVID-19 assistance programs and the California property tax penalty cancellation request program. FHFA is extending the foreclosure moratorium through March 31, 2021. In addition, the forbearance allowance period is now 15 months.
Since real estate is an essential service, people continue to buy and sell homes, with just a few modifications. For example, there are limitations on who can enter a property for sale, and we aren’t holding any open houses.
Housing Inventory
The biggest challenge facing buyers (and their agents) continues to be a lack of inventory. As you can see below, the inventory keeps dropping. As a result, there are many buyers out searching for homes, and finding themselves competing with each other. Over the past few weeks, more buyers have been offering prices significantly higher than asking. In addition, they have been removing contingencies to make their offers more attractive.
On the other side, many sellers find that their homes are selling quickly, and at a much higher price than expected. For example, many investors have noticed the increase in value of their rental properties. As a result of their growing equity, many investors are selling their rental properties this year.
Days on Market
Because the inventory is so low, homes are selling very quickly. Properties with an appropriate list price usually receive offers within a few days. For February 2021 sales, most homes went into escrow within 6 days.
Prices
Throughout 2020, prices went up consistently. So far, 2021 has even more pronounced increases. February 2021 median sales prices for detached homes set new records in Carlsbad, San Marcos, Oceanside, and Escondido.
Looking at the charts below, we can see that any sharp changes in median prices usually correct themselves within a month or two.
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Carlsbad
February Sales: The median sales price for detached homes in Carlsbad was a new all-time high of $1,337,500. At the same time, the median sales price for attached homes was $630,000 in February.
Days on Market: The median number of Days on Market for detached homes sold in February was 5, down from 12 in January. Attached homes sold in February were on the market for a median number of 6 days, down from 21 in January.
Inventory: Inventory for both detached and attached homes in Carlsbad increased 33% between mid-February and early March. Most of this increase was in townhomes and condominiums.
Here’s how the inventory has changed since 2018. Current inventory for detached homes in Carlsbad is half of how many were available last summer.
Encinitas/Cardiff-by-the-Sea
February Sales: The median sales price for detached homes in Encinitas in February was $1,630,000, down from an all-time high of $2,052,500 in January. The median sales price for attached homes was $768,500 in February.
Days on Market: The median number of days on market for February sales was 10 for detached homes, and 5 for attached homes.
Inventory: Inventory levels for Encinitas/Cardiff homes hasn’t changed much since the beginning of the year. Inventory continues to stay low, limiting choices for buyers.
San Marcos
February Sales: The median sales price for detached homes in San Marcos reached a new all-time high of $910,000 in February. At the same time, the median sales price for attached homes was $533,000.
Days on Market: The median number of days on market was only 3 days for both attached and detached homes.
Inventory: Total San Marcos inventory increased 47% between mid-February and early March. The number of detached houses available for sale doubled during that time.
Vista
February Sales: The median sales price for detached homes in Vista was $665,000. This is slightly down from the all-time high in November. The median sales price for attached homes was $445,000.
Days on Market: The median number of days on market for February detached and attached home sales was only 6 days.
Inventory: In Vista, inventory for detached and attached homes increased 30% between mid-February and early March. Current inventory is less than half of what was available last summer.
Oceanside
February Sales: The median sales price for detached homes in Oceanside in February reached a new all-time high of $670,000. The median sales price for attached homes was $463,500.
Here’s how sales prices of Oceanside detached homes have changed since January 2019.
Days On Market: For February sales, detached Oceanside homes sold within a median number of 7 days. The median number of days on market for attached home sales was 11.
Inventory: In Oceanside, inventory for detached homes has stayed about the same since December 2020.
Escondido
February Sales: The median sales price for detached homes reached a new all-time high of $715,000 in February. The median sales price for attached homes was $380,000 in February.
Here’s how sales prices of Escondido detached homes have changed since January 2019.
Days on Market: Most Escondido homes sell in less than one week. The median number of days on market for detached homes sold in February was 6. The median number of days on market for attached homes was 5.
Inventory: In Escondido, total inventory increased 13% between mid-February and early March. Still, today’s inventory of detached homes is less than half of how many homes were available one year 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 – March 2021
Solar Rebates – 26% Federal Tax Credit Available through 2022
The 30% Federal Tax Credit tapered down to a 26% Federal Tax Credit on January 1, 2021. 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 22% in 2023.
For more information, read my Solar for Homeowners article series.
2021 Mortgage Limits
The 2021 mortgage limit for conventional and FHA loans in San Diego County is $753,250. In addition, the conforming loan limit has increased to $548,250. As a result, loans at or below this amount usually offer the lowest interest rates.
Loans between $548,250 and $753,250 are called super conforming, or high balance loans. Any loans above $753,250 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 all-time lows. As a result, with excellent credit, fixed mortgage rates for 30-year terms hover around 2.625% for conventional loans. VA and FHA loans enjoy slightly lower rates, closer to 2.25%.
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
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.
