This September 2017 Real Estate Market Report describes the real estate market conditions in Coastal North County San Diego, and how they have changed over the past month and year.
What’s Happening in the North County San Diego Real Estate Market?
As summer winds down, we have seen a very consistent season of low inventory, and slowly increasing prices. The large pool of well-qualified buyers, along with limited inventory and stable prices, all indicate a strong, steady real estate market. Overall, inventory is slightly lower than one month ago, and August sales prices were similar to July.
The low inventory means that homes aren’t on the market very long. At the very beginning of this month, my listing at 2140 Silverado Street was sold in only 4 days, with multiple offers! Homes that are priced appropriately and marketed aggressively usually sell quickly.
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In Carlsbad, there are 4% fewer homes for sale than one month ago. In August, the median final sales price for a detached home was $982,250, up from $901,056 in July. For attached homes, the August median sales price was $520,563, down from $560,250 in July. Most August sales were on the market for 2 weeks or less.
In Encinitas, inventory levels haven’t changed between July and August. August median sales prices for detached and attached homes were about $100,000 higher than in July. At the same time, the number of days on market for August sales was about a week longer than in July. Most August sales were on the market for 3 weeks or less.
In San Marcos, inventory is down 5% from one month ago. August median sales prices were very similar to July sales. Most detached homes sold within 2 weeks, and most attached homes sold within 1 week.
In Vista, inventory has increased by 5% from last month. Median sales prices in August were slightly higher for detached homes at $544,500, and lower for attached homes at $302,500. Most homes were on the market for less than 2 weeks.
Interest Rates
Interest rates have been steady, and are projected to remain steady for the remainder of the year. Fixed mortgage rates for 30-year terms continue to hover around 4% for conventional loans. VA and FHA loans have enjoyed lower rates, mostly below 4%.
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Mortgage Limits in 2017 – Conventional, VA, FHA
The 2017 mortgage limit for conventional, VA, and FHA loans in San Diego County is $612,950. The conforming loan limit is now $424,100. Loans at or below this amount usually offer the lowest interest rates.
Loans between $424,100 and $612,950 are super conforming loans. Any loans above $612,950 are jumbo loans.
Loan Program Update
FHA Loan Programs offer mortgages with only 3 1/2% down payment. VA Loan Programs continue to offer $0 down payment mortgages to eligible military active duty and veterans, with no monthly mortgage insurance. Conventional loans are available starting at only 3% down payment, and some of these conventional loans are available with no monthly mortgage insurance.
All of these loan programs can be used for new purchases, or for refinancing existing mortgages.
THERE’S STILL TIME TO BUY SOLAR! Federal tax code 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% in 2022. Read my Solar for Homeowners article series.
Tree Trimming Season is Almost Back
As soon as the weather cools later this month or next, it will be the right time to trim your trees. Read more about when to prune your trees.
Down Payment Assistance
Low- to median-income borrowers may qualify for down payment assistance. Some programs can be layered on top of each other, to maximize your benefit.
Use the California Association of REALTORS® Down Payment Resource Tool to check all available programs. Here are links to my articles about some popular down payment programs:
- CalHFA Down Payment Assistance – deferred loans for first-time home buyers (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
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, and Vista.
North County San Diego Market Report September 2017
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, to give you the true cost of selling a home.
You can also use my Seller Net Proceeds Worksheet, to estimate your bottom line. You can also read about the seller disclosure process. If you need to sell one home to 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.
Buying a Home
If you’re thinking of buying a home, use my Cost to Buy a House Worksheet and my Monthly Housing Costs Worksheet, to help you budget and plan for the future. You can also estimate your Mortgage Approval Amount. Learn more about the Cost to Buy a House and the Cost to Own a Home. If you are a cash buyer, read about Closing Costs for Cash Buyers.
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 should consider a Renovation Loan. Renovation loans finance both the property and the renovations, in one single mortgage payment. Renovation loans can be used to finance energy upgrades, like insulation, solar panels, and electric heat pump water heaters. Before you invest in energy efficiency, read about 7 Ways to Finance Energy Upgrades.
Any questions? Send me a message.
