Real Estate Market Report

North County San Diego Real Estate Market Report – October 2019

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 decreased between early September and early October. In the past month, we have seen a modest 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 3 weeks.

Prices

Prices have been stable all year. Between August and September final sales prices, we saw a decrease in some cities, and an increase in others. 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

In Carlsbad, inventory for both detached and attached homes decreased 7% between early September and early October.

The median sales price for detached homes decreased by almost 5%, from $1,020,000 in August to $970,000 in September. At the same time, the median sales price for attached homes decreased 6%, $605,000 in August to $566,995 in September.

The median number of Days on Market for detached homes increased from 15 in August to 18 in September. Attached homes sold in September were on the market for a median number of 21 days.

Here’s how sales prices of detached homes in Carlsbad have changed since January 2018:

Here’s how the inventory has changed since the beginning of 2018. Inventory for detached homes in Carlsbad peaked one year ago.


Encinitas/Cardiff-by-the-Sea

In Encinitas, inventory levels decreased by 3% between early September and early October.

The median sales price for detached homes decreased by 15%, from $1,500,000 in August to $1,252,500 in September. The median sales price for attached homes increased by 20%, from $648,000 in August to a high of $778,000 in September.

Most homes in Encinitas are selling within 3 weeks. The median number of days on market in September was 15 for detached homes, and 28 for attached homes.

Inventory in Encinitas/Cardiff is at a similar level as one year ago.


San Marcos

In San Marcos, total inventory hasn’t really changed since early August. For the past two months, there have been just over 200 homes (detached and attached) listed for sale.

On the other hand, the median sales price for detached homes increased by 8%, from $694,000 in August to $700,000 in September. Sales prices for attached homes are almost identical between August and September sales. The median sales price in September for attached homes was $434,000.

Detached homes in San Marcos took slightly less time to sell in September than in August. The median number of days on market dropped from 25 in August to 23 in September. At the same time, the median number of days on market for attached homes increased from 15 in August to 20 in September.

Inventory for detached homes in San Marcos has increased since the holidays, but is still lower than one year ago.


Vista

In Vista, inventory for both detached and attached homes has decreased by almost 5% between early September and early October. The median sales prices for detached homes increased more than 8%, from $552,450 in August to a high of $595,000 in September. At the same time, the median sales price for attached homes decreased slightly, from $380,000 in August to $375,000 in September.

The time it took to sell a detached home in September was 21 days. The number of days on market for September attached home sales was 14 days.

Inventory in Vista is currently lower than October 2018 levels.


Oceanside

In Oceanside, inventory for detached homes was almost identical between September and October 2019.

The median sales price for detached homes increased by under 3%, from $573,500 in August to $590,000 in September. The median sales price for attached homes decreased slightly, from $518,990 in August to $516,580 in September.

Here’s how sales prices of Oceanside detached homes have changed over the past year.

The median number of days on market for detached home sales also increased from 16 in August to 20 in September. The median number of days on market for attached home sales decreased from 30 in August to 17 in September.

Inventory in Oceanside is back down to Spring 2019 levels.


Escondido

In Escondido, inventory dropped almost 15% between early September and early October.

The median sales price for detached homes increased 5%, from $562,500 in August to $592,500 in September. The median sales price for attached homes decreased by almost 13%, from $360,000 in August to $314,000 in September.

Here’s how sales prices of Escondido detached homes have changed over the past year.

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 is back down to early 2019 levels.


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, and I have just added the cities of Oceanside and Escondido.

Download – October 2019 North County San Diego Real Estate Market Report


Solar Rebates – 30% Federal Tax Credit Available through December 31 – only TWO months 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 in November.

Interest Rates

Interest rates recently dropped to multi-year lows. As a result, with excellent credit, fixed mortgage rates for 30-year terms hover around 3.5% for conventional loans. VA and FHA loans enjoy slightly lower rates, closer to 3.25%.

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, and 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.

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:


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. These tools can help you budget and plan for the future. 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.

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.

If you’re interested in buying a fixer property and hiring contractors to make repairs and renovations, you can consider a Renovation Loan. Renovation loans finance both the property and the renovations, in one single mortgage payment. For example, renovation loans can be used to finance energy upgrades and fireproofing upgrades, such as insulationsolar panels, and electric heat pump water heaters. Most importantly, read about 7 Ways to Finance Energy Upgrades before you invest in energy efficiency.

Any questions? Would you like market data for San Diego areas not included in my Real Estate Market Report? Send me a message.