Seasonal decline in inventory of homes expected to vanish in January and February

FALLBROOK – Declines in the inventory of single family detached and attached homes hit unhealthy low levels in December in two prime North San Diego County markets, Jerry Kalman, a realtor® with HomeSmart Legends, said.

Entering January, there were only 210 homes in the active inventory spanning Fallbrook and Bonsall, a level not seen since during and immediately following the recent recession. On the market were 201 detached homes and nine condos, the latter a typical quantity throughout the year though many at the moment are higher end units.

During December, 43 homes came off the market, bringing the total of those in escrow to 78, which partially accounted for the reduction in the inventory of active homes. Most of the decline, however, he attributed to seasonal factors surrounding canceled and expired listings, many of which will be held off the market for a few more weeks.

The average Fallbrook and Bonsall selling price of $539,000 per home reflected a two percent increase over November and a three percent decrease in the average selling price over December 2014. Sales volume in the two communities was 15 percent better than in the prior December.

In December, 13 percent of the homes sold at or above the original asking price, and many of those were VA or FHA transactions. Overall, 38 percent of the homes that sold were under VA/FHA contracts, a trend that accelerated throughout the year as first-time homebuyers and those using their VA benefits became active buyers.

At the high end, three homes sold above $1 million, two in Fallbrook. Three more were in escrow after an average market time of 79 days. Another 45 homes were in the active inventory where they averaged almost seven months on the market.

Three condominiums sold in December, two in Fallbrook, with an average price of $285,000 or $194 per square foot in this important part of the market. Meanwhile, seven condos were in escrow, five in Fallbrook; and 10 were active listings on the market, half of them in Bonsall.

Also reflecting seasonal dynamics, in December it took an average of 81 days for homes to sell while on the market, 65 percent more time than in September when it took 49 days to move a home into escrow.

The average selling price per square foot, an important metric of pricing, was $216, a three percent increase over November.

(Data provided by Sandicor and 10K InfoSparks)

2014 vs. 2015

Comparing 2015 with 2014, Kalman noted that total home sales here increased by 11 percent. Prices at an average of $541,000 per property were four percent better than in the prior year, a level close to the national average.

He also said there was more activity among high-end homes as this segment saw a 16 percent increase in volume, most of that boost in Bonsall. Prices declined, on average, while time on the market stretched out from two-and-a-half months to more than three months.

Similar data was seen in condos here as there was a nice increase in activity while prices were essentially flat and it took 30 percent more time to sell these units in 2015 than in the prior year. More than half the transactions involved condos in Fallbrook.

Kalman´s data for the reporting periods ending December 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.

To learn more, visit HomeSmart Legends, 701 S. Main Ave., Fallbrook.