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
Real estate sales remains an essential service. In spite of the lockdown, we are as busy as ever. We follow safety guidelines, such as wearing masks and using hand sanitizer, and there are no open houses at this time. Showings are for buyers and their agents only.
Inventory
The biggest challenge facing buyers is the lack of inventory. As you can see in the charts below, the inventory keeps dropping. There are many buyers out searching for homes, and finding themselves competing with offers. On the other side, sellers are finding that their homes are selling quickly, and at a higher price than expected.
Days on Market
Properties with an appropriate list price usually receive offers within one to two weeks. For August sales, most homes went into escrow within two weeks.
Prices
Even though we haven’t seen any drastic changes, prices have increased consistently to all-time highs. August 2020 median sales prices for detached homes set new records in San Marcos and Oceanside.
Looking at the charts below, we can see that any significant changes in median prices usually correct themselves within a month or two.
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Carlsbad
August Sales: The median sales price for detached homes in Carlsbad was $1,100,000, which is a slight increase from July. At the same time, the median sales price for attached homes decreased 3% from $616,500 in July to $595,000 in August.
Days on Market: The median number of Days on Market for detached homes sold in August was 8, down from 9 in July. Attached homes sold in August were on the market for a median number of 11 days, down from 13 in July.
Inventory: Inventory for both detached and attached homes in Carlsbad stayed decreased 12% between mid-August and mid-September.
Here’s how the inventory has changed since 2018. Current inventory for detached homes in Carlsbad is less than half of how many were available only one year ago.
Encinitas/Cardiff-by-the-Sea
August Sales: The median sales price for detached homes in Encinitas was $1,652,500, which is 18% higher than the July median price of $1,400,000. This is close to the all-time high for Encinitas, $1,675,000. At the same time, the median sales price for attached homes increased 13%, from $694,000 in July to $787,950 in August.
Days on Market: The median number of days on market for August sales was 24 for detached homes, and 13 for attached homes.
Inventory: Inventory levels for Encinitas/Cardiff homes decreased 20% between mid-August and mid-September. Inventory continues to drop, limiting choices for buyers.
San Marcos
August Sales: The median sales price for detached homes in San Marcos increased 4%, from $753,500 in July to a new historic high of $787,500 in August. At the same time, the median sales price for attached homes stayed almost the same.
Days on Market: The median number of days on market was only 8 for detached homes, and 9 for attached homes.
Inventory: Total San Marcos inventory increased 12% between mid-August and mid-September. Current inventory levels are only 30% of what was available one year ago.
Vista
August Sales: The median sales price for detached homes in Vista was $639,900, slightly less than the all-time high of $642,000 in July. The median sales price for attached homes decreased 11%, from $469,900 in July to $415,000 in August.
Days on Market: The median number of days on market for August detached home sales was 9 days. On the other hand, attached homes were on the market for a median number of 33 days.
Inventory: In Vista, inventory for detached and attached homes decreased 23% between mid-August. Still, current inventory is only 40% of what was available only one year ago.
Oceanside
August Sales: The median sales price for detached homes in Oceanside beat last month’s all-time high of $645,000 in July, to a new all-time high of $652,500. The median sales price for attached homes decreased 8%, from $447,000 in July to $415,000 in August.
Here’s how sales prices of Oceanside detached homes have changed over the past year.
Days On Market: For August sales, detached Oceanside homes sold within a median number of 9 days. The median number of days on market for attached home sales was 12.
Inventory: In Oceanside, inventory for detached homes increased slightly between mid-August and mid-September. This is less than 37% of how many homes were available only one year ago!
Escondido
August Sales: The median sales price for detached homes decreased slightly, from the all-time high in July of $650,000, to $633,000 in August. The median sales price for attached homes decreased 14%, from $372,000 in July to $318,750 in August.
Here’s how sales prices of Escondido detached homes have changed over the past year.
Days on Market: Most Escondido homes usually sell within 2 weeks. The median number of days on market for detached homes sold in August was 8. The median number of days on market for attached homes was 12.
Inventory: In Escondido, total inventory increased 10% between mid-August and mid-September. Still, today’s inventory of detached homes is only 36% of how many homes were available one year ago.
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 – September 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
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 are still at all-time lows. As a result, with excellent credit, fixed mortgage rates for 30-year terms hover around 2.875% for conventional loans. VA and FHA loans enjoy slightly lower rates, closer to 2.5%.
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 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.
