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
As we enter the spring season, we’re still seeing low inventory all over North County. Between February and March, some areas experienced an increase, others a decrease, and others no change. You can see in the charts below that the inventory is historically very low.
Days on Market
Because the inventory is so low, homes are selling quickly. For February 2022 sales, most detached homes went into escrow within 6 days.
Prices – New sales price records for San Marcos, Carlsbad, Encinitas, and Vista
Even though winter is usually the slow season, the low inventory kept prices high throughout San Diego County. In North County, February sales set a new price record for detached home sales in San Marcos and attached home sales in Carlsbad, Encinitas, and Vista.
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Carlsbad – $1,600,000
February Sales: The median sales price for detached homes in Carlsbad for February sales was $1,600,000, lower than last month’s all-time high of $1,685,000. At the same time, the median sales price for attached homes set a new record of $825,000, beating September’s all-time high of $809,005.
Days on Market: Most homes sell within one week. The median number of days on market for detached homes sold in February was 6. Attached homes sold in February were on the market for a median number of 7 days.
Inventory: Inventory for both detached and attached homes in Carlsbad was almost identical between early February and early March.
Here’s how the inventory has changed since 2018. You can see that in September 2018, there were 240 detached homes for sale. On March 10, there were only 30.
Encinitas/Cardiff-by-the-Sea – $1,849,000
February Sales: The median sales price for detached homes in Encinitas in February was $1,849,000, down from November’s historic high of $2,300,000. The median sales price for attached homes in February set a new record of $1,250,000, beating November’s all-time record of $1,200,000.
Days on Market: The median number of days on market for February sales was 6 for detached homes, and 7 for attached homes.
Inventory: Total inventory levels for Encinitas and Cardiff homes were slightly lower between early February and early March. 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 – NEW RECORD – $1,000,050
February Sales: The median sales price for detached homes in San Marcos set a new all-time record of $1,000,050, beating November’s record of $997,575. The median sales price for attached homes was $632,000, just below September and October’s all-time high of $637,000.
Days on Market: The median number of days on market was only 5 days for both detached and attached homes.
Inventory: Total San Marcos inventory increased 28% between early February and early March. Today’s inventory levels for detached homes are less than half of what we had just two years ago.
Vista – $862,500
February Sales: The median sales price for detached homes in Vista was $862,500, less than January’s record of $877,500. The median sales price for attached homes reached a new high of $583,000, beating December’s record of $580,000.
Days on Market: The median number of days on market for detached homes was 6 days, and for attached homes was 5 days.
Inventory: In Vista, inventory for detached and attached homes increased 18% between early February and early March. Detached inventory is less than half of what we had two years ago.
Oceanside – $810,000
February Sales: The median sales price for detached homes in Oceanside in February was $810,000, less than January’s all-time high of $850,000. The median sales price for attached homes in February was $560,000, just 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 February sales, both detached and attached homes sold within a median number of 6 days.
Inventory: In Oceanside, inventory levels decreased 20% between early February and early March. Our current inventory of detached homes for sale is less than half of what we had two years ago.
Escondido – $830,000
February Sales: The median sales price for detached homes was $830,000, down from last May’s record high of $841,495. The median sales price for attached homes in February was $430,000, down from last 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 and attached home sales was 6.
Inventory: In Escondido, total inventory increased 17% between early February and early March. You can see in the chart below that detached inventory has dropped to less than half 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 – March 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 have already trended up this year. With excellent credit, fixed mortgage rates for 30-year terms hover around 3.75% for conventional loans. VA and FHA loan programs usually offer lower rates, closer to 3.25%.
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 3.5% 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.
