North County real estate begins to flatten after torrid first half

FALLBROOK – Real estate activity in two prime North San Diego County markets cooled slightly in July as prices dipped below June levels and volume was flat, Jerry Kalman, a realtor® with HomeSmart Legends here, reported Aug. 4.

Kalman said that July results suggest the 2017 market topped in May and June and he expected Fallbrook and Bonsall activity to track seasonal patterns that reflect less volume and price pressures that accompany lower demand in the coming months.

According to Kalman, 74 homes came off the market in July, bringing the total at month-end to 105 units in escrow, both of which were dips from month-earlier levels. In July, the average listing price of those off the market rose eight percent to $672,000.

With a decline in properties coming off the market, the inventory increased and time on the market lengthened in July. The inventory for both detached and condo-styled homes increased to 240 units.

Time on the market for those entering escrow increased from 39 to an average of 53 days. In July, homes that sold took 32 days to sell, 16 days better than in July of 2016. Many of those homes went into escrow in May and June.

“Even though there was some heavy discounting, especially at the high end, almost half the 80 sales in July were equal to or better than the original asking price,” Kalman said. “Once again, most of those that sold at a premium price went into escrow within 30 days of when they were listed.”

For the first time in many months, less than half of all transactions were financed with conventional mortgages. VA/FHA transactions increased to 35 percent of the activity after many months below 30 percent while cash buyers in Fallbrook and Bonsall represented 21 percent of the transactions, which was also a trend reversal.

Kalman said the average selling price per square foot in these two communities, an important metric used as a rough starting point on setting values because of the diverse nature of homes here, rose two percent to $270. Bonsall was up at $281 per square foot while Fallbrook rose slightly to $258. The San Diego County average slipped to $377 per square foot.

Four high-end homes, three in Fallbrook closed escrow in July, with two of them cash transactions. Sixteen more, including 12 in Fallbrook, are in escrow. There are 57 of these million-dollar-plus properties on the market, one fourth of the active listings. Most of them are in Fallbrook.

In July, 10 condos, seven in Fallbrook, sold with an average market time of eight days. Nine condos, five of them in Bonsall, were in escrow with an average market time of under 30 days. Fifteen condos were on the market entering August, including 10 in Bonsall.

Kalman´s data for the reporting periods ending July 31, 2017, came from Sandicor, the area's 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.

HomeSmart Legends is located at 701 S. Main Ave in Fallbrook.