Update: The Real Estate Market in North County San Diego
Data Source: Mylene’s Real Estate Market Report uses data from CRMLS for 2018-2021 and represents properties listed or sold by various brokers.
COVID Update
Assistance for homeowners, renters, and landlords is coming to a close…
COVID Assistance For Homeowners is Ending
Many homeowners have received some financial assistance through COVID-19 assistance programs and the California property tax penalty cancellation request program.
FHFA has extended the foreclosure moratorium through September 30, 2021. Forbearance programs are also set to end on September 30, 2021.
COVID Assistance For Renters
There is rental assistance available for California landlords and tenants. Governor Newsom recently signed AB 832 into law, which doubled rental assistance funds to $5.2 billion. You can receive assistance for rent and utilities for the period between April 1, 2020 and September 30, 2021. Check your eligibility to receive COVID relief for missed rents due to the pandemic.
You can also check the Consumer Financial Protection Bureau website for rental assistance programs available throughout the United States.
Finally, the eviction moratorium in San Diego County has been extended through October 3, 2021. Here’s more information about the CDC’s declaration.
Housing Inventory
As you can see in the charts below, the inventory is still very low. Luckily, we have seen more homes go on the market over the past couple of months.
Everyone is hoping that, as more sellers feel comfortable showing their properties, that inventory will increase as we enter the fall season.
Days on Market
Because the inventory is so low, homes are selling very quickly. Properties with an appropriate list price usually receive offers within a few days. For August 2021 sales, most homes went into escrow in within 7 days.
Prices
Throughout 2020, prices went up consistently. So far, 2021 has even more pronounced increases. In North County alone, August 2021 median sales prices for detached homes set new records in Carlsbad and San Marcos.
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Carlsbad – New Record for Detached Sales – $1.6M
August Sales: The median sales price for detached homes in Carlsbad reached a new historic high of $1,600,000, significantly higher than June’s all-time high of $1,462,500. At the same time, the median sales price for attached homes was $740,000, slightly below June’s all-time high of $750,000.
Days on Market: Most homes sell within one week. The median number of days on market for detached homes sold in August was 6. Attached homes sold in August were on the market for a median number of 8 days.
Inventory: Inventory for both detached and attached homes in Carlsbad dropped 20% between early August and early September.
Here’s how the inventory has changed since 2018. Current inventory for detached homes in Carlsbad matches what we had during the last fall season.
Encinitas/Cardiff-by-the-Sea
August Sales: The median sales price for detached homes in Encinitas in August was $1,860,000, down from the all-time high of $2,052,500 in January. The median sales price for attached homes in August was $735,000, much lower than June’s all-time high of $1,019,000.
Days on Market: The median number of days on market for August sales was 9 for detached homes, and 7 for attached homes.
Inventory: Inventory levels for Encinitas/Cardiff homes decreased 8% between early August and early September.
San Marcos – New Record for Detached Sales – $964,887
August Sales: The median sales price for detached homes in San Marcos reached a new historic high of $964,887. At the same time, the median sales price for attached homes was $609,500, just under last month’s all-time high of $610,000.
Days on Market: The median number of days on market was only 7 days for detached homes, and 8 days for attached homes.
Inventory: Total San Marcos inventory decreased 23% between early August and early September. Today’s levels are similar to what we had one year ago.
Vista
August Sales: The median sales price for detached homes in Vista was $725,000, lower than last month’s all-time high of $787,750. The median sales price for attached homes was $462,000.
Days on Market: The median number of days on market for detached and attached homes was 7 days.
Inventory: In Vista, inventory for detached and attached homes decreased 34% between early August and early September. Detached inventory is similar to what we had one year ago.
Oceanside
August Sales: The median sales price for detached homes in Oceanside in August was $786,000, down from June’s all-time high of $800,000. The median sales price for attached homes in August was $497,500, down from last month’s all-time high of $511,317.
Here’s how sales prices of Oceanside detached homes have changed since January 2019.
Days On Market: For August sales, both detached and attached homes in Oceanside sold within a median number of 7 days.
Inventory: In Oceanside, inventory levels were similar between early August and early September.
Escondido
August Sales: The median sales price for detached homes was $810,000, slightly higher than last month’s median price of $799,500. The median sales price for attached homes was $418,000.
Here’s how sales prices of Escondido detached homes have changed since January 2019.
Days on Market: The median number of days on market for detached home sales was 9. The median number of days on market for attached homes sold in August was 7.
Inventory: In Escondido, total inventory decreased 11% between early August and early September. Still, the chart below shows how inventory for detached homes is less than half of what we had two years ago.
Consult the North County San Diego Real Estate Market Report
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 2021
Solar Rebates – 26% Federal Tax Credit Available through 2022
Federal tax code allows 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.
The 30% Federal Tax Credit tapered down to a 26% Federal Tax Credit on January 1, 2021. This incentive will taper down to 22% in 2023.
For more information, read my Solar for Homeowners article series.
2021 Mortgage Limits
The 2021 mortgage limit for conventional and FHA loans in San Diego County is $753,250. In addition, the conforming loan limit has increased to $548,250. As a result, loans at or below this amount usually offer the lowest interest rates.
Loans between $548,250 and $753,250 are called super conforming, or high balance loans. Any loans above $753,250 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.
Mortgage limits for 2022 will be released soon.
Interest Rates
Interest rates have remained low all summer. With excellent credit, fixed mortgage rates for 30-year terms hover around 2.75% for conventional loans. VA and FHA loan programs usually offer lower rates, closer to 2.25%.
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 WaterSmart 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
Finally, you are invited to attend a no-cost online home buyer workshop. Freddie Mac provides this 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.
