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
Back in March, when everything was first shut down, I expected lots of changes in the real estate market. I thought that I would finally have a dramatic headline for you! And then… real estate sales was quickly re-classified as an essential service. With added precautions, agents went back to showing homes.
Even though there aren’t as many buyers, the ones who are out shopping for homes are motivated to buy. My last two listings, one listed in April and another in May, went into escrow within a week!
Inventory
North County inventory has increased since the beginning of the year, but is still at early 2018 levels. In late March, at the beginning of the pandemic shut-down, many sellers temporarily withdrew their homes from the market. Many of those homes have been placed back on the market, in addition to new listings.
Days on Market
The median number of days on market has decreased since the beginning of the year. Most of the sales that closed in April were on the market for less than 2 weeks.
Prices
Prices have been stable throughout the first half of 2020. We haven’t seen any dramatic changes as a result of the COVID-19 pandemic.
Across six cities in North County, April sales prices set FIVE new records: attached homes in Carlsbad and San Marcos, and detached homes in Encinitas, Vista, and Oceanside.
Looking at the charts below, we can see how large increases or decreases usually correct themselves within a month or two.
[widget id=”text-31″]
Carlsbad
April Sales: The median sales price for detached homes in Carlsbad was $1,115,000. At the same time, the median sales price for attached homes reached a record high of $630,000.
Days on Market: The median number of Days on Market for detached homes sold in April was 9. Attached homes sold in April were on the market for a median number of 11 days.
Inventory: Inventory for both detached and attached homes in Carlsbad increased 10% between mid-April and mid-May.
Here’s how the inventory has changed since 2018. Current inventory for detached homes in Carlsbad is back down to late 2019 levels.
Encinitas/Cardiff-by-the-Sea
April Sales: The median sales price for detached homes in Encinitas reached an all-time high of $1,675,000 in April. At the same time, the median sales price for attached homes remained stable, at $726,000.
Days on Market: The median number of days on market for April sales was 25 for detached homes, up from 13 in March. Attached homes sold in April were on the market for a median number of 11 days, up from 8 in March.
Inventory: Inventory levels for Encinitas/Cardiff homes have increased 10% between mid-April and mid-May, back to late 2019 levels.
San Marcos
April Sales: The median sales price for detached homes in San Marcos was $726,000. At the same time, the median sales price for attached homes reached an all-time high of $499,000.
Days on Market: Detached homes in San Marcos took less time to sell in April than earlier in the year. The median number of days on market was only 7 for detached homes, and 9 for attached homes.
Inventory: Total San Marcos inventory remained stable all year. We are still down at early 2018 levels.
Vista
April Sales: The median sales price for detached homes in Vista reached an all-time high of $622,500 in April. The median sales price for attached homes was $400,000.
Days on Market: For April sales, most homes in Vista sold in less than two weeks. The number of days on market for April detached home sales was only 11 days.
Inventory: In Vista, inventory for detached and attached homes has slowly increased since the beginning of the year, back to December 2019 levels.
Oceanside
April Sales: The median sales price for detached homes in Oceanside reached a new record of $625,000. The median sales price for attached homes was $398,750 in January.
Here’s how sales prices of Oceanside detached homes have changed over the past year.
Days On Market: For April sales, detached Oceanside homes sold in only 8 days. The median number of days on market for attached home sales was 18.
Inventory: In Oceanside, inventory for detached homes decreased almost 13% between mid-April and mid-May, back down to December 2019 levels.
Escondido
April Sales: The median sales price for detached homes was $620,000. The median sales price for attached homes was $310,000.
Here’s how sales prices of Escondido detached homes have changed over the past year.
Days on Market: Most Escondido homes usually sell in less than 2 weeks. The median number of days on market for detached homes sold in April was 12. The median number of days on market for attached homes was 10.
Inventory: In Escondido, inventory was identical between mid-April and mid-May.
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 – May 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 3.25% for conventional loans. VA and FHA loans enjoy slightly lower rates, closer to 3.125%.
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.
[widget id=”text-5″]
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.
