Real estate prices, volume drift down in August

FALLBROOK – Real estate activity in the Fallbrook/Bonsall market reflected a typical trend toward a seasonal downward drift as prices and volume decreased in August. A reduced number of properties entering escrow foretells of more slowing in activity over the coming months, Jerry Kalman, a Realtor® with HomeSmart Legends reported Sept. 16.

The average Fallbrook and Bonsall selling price of $532,000 per home reflected a slight two percent bump above August 2014 levels; however, there was a six percent decline in average selling price from July of 2015.

Volume was 34 percent better than August of 2014, but 11 percent lower than last month. One third of the homes in August sold at or above the original asking price, and most of them once again were conventional transactions. Continuing a trend that started earlier this year, conventional transactions are accounting for more than half of the activity.

Meanwhile, less than 10 percent of the August transactions were for cash, only one of them at the asking price. Forty percent of the homes that sold were under VA/FHA contracts, an indicator that first-time buyers and those coming back into the market remain an increasingly active part of the market.

At the high-end, three homes sold, two in Fallbrook, with an average market time of 79 days. Another 56 homes were in the active inventory, and six more, all in Fallbrook, were in escrow.

Three condominiums sold in August, two in Fallbrook, with an average price of $233,000. Meanwhile, 10 condos were in escrow, four in Bonsall; and 12 were active listings on the market, nine of them in Fallbrook.

In August, it took 52 days on average for homes to sell while on the market, which was a 20 percent improvement over July when it took more than two months to move a home into escrow.

The average selling price per square foot, an important metric of pricing, was $237, a surprising increase despite the drop in average selling price.

Entering September, the residential inventory slipped below year-topping levels as the rate of closings slowed and, with them, properties going into escrow. He noted that 291 properties were available, which still provides ample choices for buyers. The market has less than a four-month supply of homes.

During August, 55 homes here came off the market, while the overall number of homes in escrow dropped to 71 properties.

Diminished activity at the high end and steady demand and available funding for more affordable entry-level homes along with rumblings of increases in mortgage rates should continue to keep average selling prices down in the coming months, he forecast.

Kalman's data for the reporting periods ending Aug. 31, 2015, came from Sandicor, Inc., the area's multiple listing service for Realtors. It represents properties listed or sold by various brokers in the region. Additional information provided by 10K InfoSparks.

Kalman and fellow real estate professionals affiliated with HomeSmart Legends, can be contacted at 701 S. Main Ave.