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 through 2019 and represents properties listed or sold by various brokers.
Inventory
North County inventory has continued to decline between early October and early November. In the past month, we have seen a significant drop in the number of homes available for sale.
Days on Market
The number of days on market has increased for some markets, and decreased for others. Across North County, most homes are selling within 4 weeks.
Prices
Prices have been stable all year. Between September and October, final sales prices decreased in some areas, and increased in others. It’s also worth noting that Carlsbad, Encinitas, and Oceanside all had the highest median sales prices in recent history. Looking at the charts below, we can how large increases or decreases usually correct themselves within a month or two.
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Carlsbad
October Sales: The median sales price for detached homes increased by 9%, from $970,000 in September to a new high of $1,060,000 in October. At the same time, the median sales price for attached homes increased 4%, from $566,995 in September to $590,000 in October.
Days on Market: The median number of Days on Market for detached homes increased from 18 in September to 30 in October. Attached homes sold in October were on the market for a median number of 26 days.
Inventory: In Carlsbad, inventory for both detached and attached homes decreased 13% between early October and early November. Here’s how the inventory has changed since the beginning of 2018. Current inventory for detached homes in Carlsbad is similar to February of this year.
Encinitas/Cardiff-by-the-Sea
October Sales: The median sales price for detached homes increased by 21%, from $1,252,500 in September to a new high of $1,515,000 in October. At the same time, the median sales price for attached homes decreased by 2%, from the high of $778,000 in September to $760,000 in October.
Days on Market: Most homes in Encinitas are selling within 4 weeks. The median number of days on market in October was 27 for detached homes, up from 15 in September. Attached homes sold in October were on the market for a median number of 22 days, down from 28 in September.
Inventory: inventory levels increased by 2% between early October and early November. Encinitas/Cardiff inventory is back down to spring 2019 levels.
San Marcos
October Sales: The median sales price for detached homes decreased by 7%, from $700,000 in September to $650,000 in October. This is the lowest price since before 2018. At the same time, sales prices for attached homes increased over 6%, from $434,000 in September to $462,500 in October.
Days on Market: Detached homes in San Marcos took less time to sell in October than in September. The median number of days on market dropped from 23 in September to 20 in October.
Inventory: Total San Marcos inventory dropped almost 23% between early October and early November. The sudden drop brings us down to April 2019 levels.
Vista
October Sales: The median sales prices for both detached and attached homes was almost identical between September and October. The median sales price for detached homes in October was $595,000, while the price for attached homes was $372,500.
Days on Market: For October sales, most Vista homes sold in less than 3 weeks. The time it took to sell a detached home in October was 17 days. The number of days on market for September attached home sales was 20 days.
Inventory: In Vista, inventory for both detached and attached homes has decreased by over 8% between early October and early November. The inventory in Vista hasn’t been this low since April 2018.
Oceanside
October Sales:The median sales prices for both detached and attached homes was almost identical between September and October. The median sales price for detached homes in October was a 2019 high of $600,000, while the price for attached homes was $370,000.
Here’s how sales prices of Oceanside detached homes have changed over the past year.
Days On Market: For October sales, most Oceanside homes sold in less than 3 weeks. The median number of days on market for detached home sales decreased from 20 in September to 15 in October. The median number of days on market for attached home sales increased from 17 in September to 19 in October.
Inventory: In Oceanside, inventory for detached homes decreased 11% between early October and early November. We are at the lowest levels in all of 2019.
Escondido
October Sales: The median sales price for detached homes increased slightly, from $592,500 in September to $600,000 in October. The median sales price for attached homes increased 13%, from $314,000 in September to $356,000 in October.
Here’s how sales prices of Escondido detached homes have changed over the past year.
Days on Market: Homes also took longer to sell, between August and September. The median number of days on market for both detached and attached homes in September was 27.
Inventory: In Escondido, inventory dropped over 7% between early October and early November, to the lowest levels of 2019.
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 – November 2019 North County San Diego Real Estate Market Report
Solar Rebates – 30% Federal Tax Credit Available through December 31 – only a few weeks left!
THE 30% FEDERAL TAX CREDIT ENDS THIS YEAR! Federal tax code currently allows for a one-time 30% Residential Energy Credit to purchase home solar photovoltaic systems. The credit may include any repairs necessary to install the panels, including roofing repairs. Check with your tax professional. This 30% incentive will be available through December 31, 2019, before tapering to 10% until 2022. (Starting January 2020, the credit will be 26%.)
For more information, read my Solar for Homeowners article series.
2019 Mortgage Limits
The 2019 mortgage limit for conventional, VA, and FHA loans in San Diego County is currently $690,000. In addition, the conforming loan limit increased to $484,350. As a result, loans at or below this amount usually offer the lowest interest rates.
Loans between $484,350 and $690,000 are called super conforming, or high balance loans. Any loans above $690,000 are jumbo loans.
2020 loan limits should be announced later this month.
Interest Rates
Interest rates are still at multi-year lows. As a result, with excellent credit, fixed mortgage rates for 30-year terms hover around 3.625% for conventional loans. VA and FHA loans enjoy slightly lower rates, closer to 3.5%. Read more about how low interest rates help you.
Another great benefit to home buyers will small down payments is LPMI rates. This stands for “lender paid mortgage insurance.” The LPMI rates are very low right now. Recently, I represented a family that paid only 5% down. Instead of paying monthly mortgage insurance, they locked in a slightly higher fixed rate on their mortgage. While LPMI rates were usually around 5%, their rate was only 4%. LPMI rates are usually available to borrowers with good to excellent credit scores. Read more about how low interest rates help you.
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
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
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.
