Volume dips as inventory shortages continue in North County

FALLBROOK – North San Diego County real estate opened 2018 with a whimper after a strong 2017, Jerry Kalman, a realtor® with HomeSmart Legends, reported recently, noting that a surge of new escrows was a bright spot in an otherwise dismal start for 2018.

Kalman said that in January the number of escrows started to increase, reaching 80 homes, two-thirds of which came off the market in the month. The average price of all those off the market rose to $667,000 while the market time dropped below two months.

Almost all the homes coming off the market were in Fallbrook.

At the top of the market, nine million-dollar-plus homes were in escrow, seven of them in Fallbrook, Kalman said. Meanwhile, five condos, three in Bonsall, were in escrow at the end of January.

According to Kalman, January real estate sales volume in Fallbrook and Bonsall was down 25 percent against January of 2017 and dipped 37 percent against December. Average sale prices for single family residences at $608,000 showed a four percent drop over the prior month but was 13 percent better than January 2017, making this another positive for January.

Market time also slipped, expanding out to 63 days in January after notching 45 days for homes that closed escrow in December and 52 days a year ago.

Only four homes sold at or above the original asking price. VA/FHA transactions increased to 38 percent of the activity in January. Cash deals were under 20 percent of the sales.

"Price-per-square-foot is an important metric for pricing homes in diverse communities such as we have here in Fallbrook and Bonsall," Kalman said. "Due to a steep decline in Bonsall, which struggled to recover from the Lilac fires in December, January showed a 12 percent dip over December, dropping to $234 versus $265 per square foot. The average price per square foot in Bonsall was $218, a 20 percent drop from December, while at $250 in neighboring Fallbrook it was essentially flat with December."

Entering February 174 homes were in the active inventory as some of those that were taken out of active status toward the end of 2017 returned to the market; however, the volume of available properties is still low. Four of those in the inventory are condos, three in Bonsall. More than a fourth of the inventory is priced above one million dollars.

Kalman´s data for the reporting periods ending January 31, 2018, came from Sandicor, Inc. and CRMLS. 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 in the North County office of HomeSmart Legends, located in Fallbrook at 701 S. Main. Contact him at (760) 468-4689 (voice or text) or [email protected].