Update: The Real Estate Market in North County San Diego
Data Source: Mylene’s Real Estate Market Report uses data from CRMLS for 2018-2023 and represents properties listed or sold by various brokers.
Housing Inventory
San Diego housing inventory has gone down, in many cities, since the beginning of the year. We hope for a break in interest rates, to incentivize more homeowners to move. At this time, there are many would-be home buyers, just waiting for more homes to come on the market. This limited inventory is likely why sales prices haven’t gone down as quickly as expected.
Days on Market
The biggest change over the past few months has been the number of days on market. We have seen the number of days on market increase rapidly since August, going from approximately one week to sell, to between 2-3 weeks to sell. In addition to longer time on the market, fewer homes are selling above asking price. Instead, sellers are finding that they need to reduce the price before they are receive an offer.
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Carlsbad – $1,440,000
February Sales: The median sales price for detached homes in Carlsbad for February sales was $1,440,000, lower than April’s record of $1,925,000, but similar to last September. At the same time, the median sales price for attached homes in February was only $890,000, only slightly lower than June’s record of $904,000.
Days on Market: The number of days on market in Carlsbad is the lowest for all North County cities. In February, the median number of days on market for detached homes was 13. The median number of days on market for attached homes sold in February was 12.
Inventory: Inventory in Carlsbad has been decreasing since the summer. We are currently back down to early spring 2022 levels.
Here’s how the inventory has changed since 2018.
Encinitas/Cardiff-by-the-Sea – $2,002,500
February Sales: The median sales price for detached homes in Encinitas in February was $2,002,500, almost half a million below May’s historic high of $2,500,000. The median sales price for attached homes in February was $1,005,000, significantly lower than May’s record of $1,343,750.
Days on Market: The median number of days on market for February sales was 28 for detached homes and 13 for attached homes.
Inventory: Total inventory levels for Encinitas and Cardiff homes have stayed low over the past year. You can see in the chart below, how it compares to the past 3 years of inventory.
San Marcos – $1,065,000
February Sales: The median sales price for detached homes in San Marcos in February was $1,065,000, only $100k below March’s all-time record of $1,166,557. The median sales price for attached homes was $715,000, just below June’s record of $732,000.
Days on Market: The median number of days on market have increased since the summer. For February sales, detached homes had a median number of 42 days on the market, and 22 days for attached homes.
Inventory: San Marcos inventory of detached homes has decreased by 65% since July.
Vista – $852,500
February Sales: The median sales price for detached homes in Vista in February was $852,500, about $100k less than May’s record of $950,000. On the other hand, the median sales price for attached homes was $585,000, very close to May’s record of $593,500.
Days on Market: The median number of days on market has increased since the summer. It is now 9 for detached homes, and 20 for attached homes.
Inventory: In Vista, the inventory for detached and attached homes has decreased by 68% since July.
Oceanside – $869,000
February Sales: The median sales price for detached homes in Oceanside in February was $869,000, about $100k less than April’s record of $950,000. The median sales price for attached homes in February was $520,000, about $75k less than May’s record of $594,750.
Here’s how sales prices of Oceanside detached homes have changed since January 2019.
Days On Market: Similar to other cities in North County, the number of days on market has doubled since the summer. For February sales, detached homes had a median number of 20 days on market. Attached homes sold within a median number of 22 days.
Inventory: In Oceanside, inventory levels have decreased since July.
Escondido – $812,500
February Sales: The median sales price for Escondido detached homes in February was $812,500, over $100k lower than May’s record of $925,000. On the other hand, the median sales price for attached homes in February was $520,000, only $30,000 less than May’s record of $550,000.
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 23. The median number of days on market for attached home sales was 34.
Inventory: In Escondido, total inventory is back down to April 2022 levels.
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 2023
New Appliance Rebates for 2023
Golden State Rebates now offers rebates to Californians for energy saving appliances. You can receive:
- $40-75 for a smart thermostat
- $500 for a heat pump water heater
- $75 for a gas tank water heater
- $20 for a portable room air conditioner
Go to the Golden State Rebates website to shop online and apply for your rebates.
Solar Rebates – 30% Federal Tax Credit Available through 2032
Are you considering adding solar to your roof? Federal tax code now allows for a one-time 30% Residential Energy Credit to purchase home solar photovoltaic systems. Read my article about the Clean Energy Credits for homeowners.
This incentive will continue for 10 more years, and eventually taper down to 26% in 2033.
For more information about solar systems, read my Solar for Homeowners article series.
2023 Mortgage Limits
The mortgage limit for conventional and FHA loans in San Diego County increased significantly in January. The conforming loan limit increased from $647,200 to $726,200. The high balance (non-jumbo) loan limit for San Diego County increased from $879,750 to $977,500. As a result, loans at or below this amount usually offer the lowest interest rates.
Loans between $726,200 and $977,500 are super conforming, or high balance loans. Any loans above $977,500 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 gone up quickly in 2022. With excellent credit, fixed mortgage rates for 30-year terms hover around 7.0% for conventional loans. VA and FHA loan programs usually offer lower rates, closer to 6.5%.
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.
