Real estate market shows strength against seasonal decline

FALLBROOK - Despite minimal activity in the high-end segment, real estate prices in the Fallbrook and Bonsall markets showed strength against seasonal declines in volume in October, Jerry Kalman, a Realtor® with HomeSmart Legends, reported.

The average Fallbrook and Bonsall selling price of $525,000 per home reflected a 16 percent rise over September and an eight percent increase in the average selling price over October 2014. Volume in the two communities declined in keeping with seasonal expectations.

In October, 16 percent of the homes sold at or above the original asking price. Meanwhile, 13 percent of the October transactions were for cash, only two of them at or above the asking price. Another 31 percent of the homes that sold were under VA/FHA contracts, a continuation of a trend sustained throughout the year, which suggests first-time buyers and those coming back into the market remain a strong force in the local community.

At the high end, once again no homes sold above $1 million, though four were in escrow after an average market time of 189 days. Another 69 homes were in the active inventory where they averaged more than five months on the market.

Five condominiums sold in October, three in Fallbrook, with an average price of $301,000 or $200 per square foot in this important part of the market. Meanwhile, four condos were in escrow, two in each community; and nine were active listings on the market, seven of them in Fallbrook.

Reflecting seasonal dynamics, in October it took an average of 66 days for homes to sell while on the market, 35 percent more time than in September when it took 49 days to move a home into escrow.

With new lending regulations, he expected the average time for homes to remain in escrow to lengthen by as much as 50 percent. During October, 53 homes here came off the market, and the overall number of homes in escrow declined slightly to 77 properties. The average asking price of those in escrow was $555,000, which suggests price declines in the remainder of the year.

The average selling price per square foot, an important metric of pricing, was $220, a nominal drop from September.

Entering November, the residential inventory slackened as demand typically ebbed during the fourth quarter. He noted that 296 properties were available and that the inventory carried an average asking price of almost $900,000. Based on October results, the market has a four-and-a-half-month supply of homes.

Kalman's data for the reporting periods ending October 31, came from Sandicor, Inc., the area's multiple listing service for Realtors. Data was also derived from 10K InfoSparks. It represents properties listed or sold by various brokers in the region.

To speak with Kalman or one of the other real estate experts at HomeSmart Legends, visit 701 S. Main Ave., Fallbrook.