North San Diego County real estate markets show mixed results as prices continue up while volume tapers off

FALLBROOK – Real estate activity in two prime North San Diego County markets showed pricing strength while volume continued its seasonal slip heading into the final months of 2016, Jerry Kalman, a realtor® with HomeSmart Legends here, reported Nov. 4.

“October home sales continued a pace set earlier in the second half by scoring price gains of 16 percent over October 2015 and five percent over September,” he said, attributing the strong showing of an average selling price of $609,000 to continued activity in the all-important mid-range segment.

The average price and number of homes in escrow declined in October. The average price of those coming off the market dipped four percent to $620,000, while the number of escrows at 93 properties dropped nine percent. Their time on the market lengthened as it continued to approach the yearly average of two months.

Entering November, the inventory dropped to 241 homes on the market, a marginal decline over September. Kalman expected the inventory to decline further as some homeowners and their agents pull properties off the market over the holiday months.

According to Kalman, cash buyers continued to be less and less of a factor as 15 percent of transactions came from this category of buyer. VA/FHA transactions accounted for 25 percent of the activity.

“Roughly 17 percent of October sales were at or above the original asking price, and most were conventional transactions,” he said. “Virtually all that sold at or above the original asking price came off the market within 30 days.”

He noted that the average selling price per square foot in the two communities, an important metric used here to price homes, dipped three percent to $247, with Bonsall eight percent lower at $240. Fallbrook had an average selling price per square foot of $254, an eight percent gain over September.

At the high end, three homes priced over a million dollars sold, all in Fallbrook. Several others just below that magical price point helped bring the local price averages up. Most of that activity, Kalman said, came from Fallbrook.

Homes above a million dollars that did sell averaged more than four months on the market. In this segment where transactions were either for cash or using conventional mortgages, several experienced steeper than average discounts to sell.

One fourth of the 58 active homes on the market priced above a million are in Bonsall.

He attributed another part of the overall increase in average prices to reduced activity in the condo segment as three in each community closed with an average selling price of $281,000. The market time for those six condos stretched out to an average of 45 days. Eight more condos were in escrow, four in each community, with an average asking price of $285,000.

Kalman´s data for the reporting periods ending Oct. 31, 2016, came from Sandicor, Inc., the area's multiple listing service for realtors. It represents properties listed or sold by various brokers in the region. He uses this information as a community service to analyze market trends and provide professional insight into real estate activity.

HomeSmart Legends is located at 701 S. Main, Fallbrook.