Three Quarters in the Books with Solid Improvement over 2015
FALLBROOK, Calif., Oct. 10, 2016 --- Paced by strength in the upper tier of properties in Fallbrook and Bonsall, prices and volume showed strength as these two important North San Diego County markets entered the fourth quarter of 2016, Jerry Kalman, a realtor® with HomeSmart Legends here, reported today.
“In September, homes here sold for average of $586,000, a seven percent increase over August and a surprisingly strong 29 percent gain over September of 2015.”
He attributed much of the price increase to an unusually high number of homes priced above one million dollars closing escrow in September. “Five of these high-end homes sold, four of them in Fallbrook. Entering October, 10 high-end homes were in escrow and another 62 were in the active inventory. The average market time for high-end homes was approaching four months,” he said.
According to Kalman, cash buyers continued to shrink as this category represented barely ten percent of the transactions in September while VA/FHA came in at 36 percent of the volume.
“Almost thirty percent of the September sales were at or above the original asking price, and more than half of them were VA/FHA transactions,” he said.
Overall, the price of the homes in escrow declined five percent to $643,000, while the number of escrows at 102 properties bumped up by seven percent as 64 homes came off the market in September. The time on the market is also beginning to edge up toward the yearly average of two months, which is typical for this time of the year.
Entering October, the inventory continued its short year-end surge as 247 homes are on the market, an increase over September and August. Kalman forecast a continued increase in the inventory through October before the volume shrinks during the year-end holiday period when market activity slows.
He noted that the average selling price per square foot in the two communities, an important metric used to price homes, was $254, with Bonsall 16 percent greater at $262. Fallbrook had an average selling price per square foot of $246, the same as in August.
Further adding impetus to the price increases in these markets, only three condominiums, two in Fallbrook, sold in September; and eleven condos, six in Fallbrook, were in escrow after an average of two months on the market. Another 16 are active listings on the market, eight in each market, and they have an average market time of more than two months.
Three Quarters of Activity in Fallbrook and Bonsall
Comparing the first three quarters of activity between 2015 and 2016, he reported that prices were essentially flat while other metrics pointed toward improvement in local real estate. Volume in 2016 was seven percent better than in 2015. The all-important days on market metric showed a ten percent improvement in the current year as it took a week less to go from active to off the market, further indicating the rate of activity to be greater this year than last.
HomeSmart, founded in 2000, has more than 10,000 agents and broker associates in offices throughout 15 states and two countries. HomeSmart Legends is the first franchise in the HomeSmart system. The Temecula office is located at 27645 Jefferson Ave., Suite 116, Temecula, CA 92590.