North County real estate prices dip while volume remains steady

FALLBROOK – Home prices dipped in Fallbrook and Bonsall as the summer months ended and these North San Diego County markets entered the final period of a robust 2017, Jerry Kalman, a Realtor with HomeSmart Legends here, reported Oct. 5.

Paced by a surge in Veteran’s Affairs and Federal Housing Administration transactions, September 2017 volume was marginally better than both the prior month and September 2016. VA/FHA transactions accounted for almost half of the volume in September, and, because many were for entry-level and mid-range homes, they kept average prices flatter in the month. Cash buyers in Fallbrook and Bonsall once again represented less than one-fifth of the transactions.

More than a third of the transactions were at or above the original asking price, and most of those were for cash or on VA/FHA contracts.

Time on the market for both VA/FHA and cash transactions started to stretch out in September as slightly more than half sold within the first 30 days of appearing on the market, while the remainder averaged close to three months before going into escrow.

Overall, time on the market for those coming off the market increased slightly to more than two months, while the time to sell also inched up above the 60-day point.

Kalman said that 68 homes came off the market in September, bringing the total at month-end to 106 units in escrow, an increase of 7 percent over August. In September, the average listing price of those off the market was essentially flat at $666,000.

The inventory for both detached and condo-style homes decreased again, dropping to 216 properties, these levels are normally associated with the traditional pre-spring run-up. Time on the market for active listings stretched out to 75 days, 11 days more than in August.

According to Kalman, the average selling price per square foot in these two communities rose 6 percent to $270. Bonsall was up slightly to $272 per square foot while Fallbrook had a nice 10 percent increase to $268. The San Diego County average was up to $383 per square foot.

Two high-end homes in each community closed escrow in September, averaging just over two months on the market. Nine more high-end homes, six in Fallbrook, are in escrow after an average of almost six months on the market.

There are still 57 of these million-dollar-plus properties on the market, slightly more than a fourth of the active listings. Most of them are in the larger community of Fallbrook, and this large overhang is pushing the average price in both communities among all active listings toward $1,000,000.

In August, seven condos, six in Bonsall, sold after an average market time of 32 days. Seven condos, only one of them in Fallbrook, were in escrow with an average market time of 50 days. Entering October, 14 condos were on the market, eight in Fallbrook.

Kalman’s data for the reporting period ending Sept. 30 came from Sandicor and the California Regional Multiple Listing Service, San Diego and Riverside counties’ multiple listing services for realtors. This report 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. Kalman is a licensed Realtor – Calif. BRE # 01328697 – in the North County office of HomeSmart Legends, 701 S. Main Avenue, in Fallbrook. He can be reached at (760) 468-4689 for voice or text or at [email protected].