San Diego North County sales up

FALLBROOK – North County detached homes increased their average sales price in the month of October to $861,566, Heidi Dickens, a Realtor with Coldwell Banker Village Properties, reported Nov. 15.

Dickens said San Diego's North County October sales were almost 17 percent higher than October 2017. However, Fallbrook and Bonsall did not reflect the same increase. Dickens stated that Fallbrook's average sales price was down 2.1 percent to $612,251 compared to October 2017's average price of $625,421.

Bonsall also showed a decrease in October's average sales price versus October 2017 of 20 percent. Dickens said the average price of a property in Bonsall in October 2018 was $798,857 while in October 2017 it was $998,333.

"Keep in mind that Bonsall only sells about three to four homes per month, so one sale can change the number dramatically," said Dickens.

Dickens noted that many homeowners like to estimate what their property is worth using the average price per square foot. According to Dickens, it's important to understand that there are many different factors that go into setting a price for a home, especially in the rural areas.

"We are fortunate to live in a community where each property is as unique as their owners," said Dickens.

Many factors play a part in deciding a current market value, and the key word here is "current." Real estate doesn't have a set sticker price – it looks more like a moving target. As buyers and sellers head into a changing real estate market, it is imperative that they talk with a local Realtor for advice and a personal evaluation of their real estate goals.

Dickens reported seeing a drop in closed sales beginning in August 2018. Rising interest rates and the projection of this continued trend will affect the buying power of new homeowners. This is the normal cyclical 10-year pattern in real estate, according to Dickens. Sellers have enjoyed rising values, multiple offers and limited days on the market. Now they may see more competition and wait a little longer to receive an offer to purchase.

Dickens said that Realtors are going to have to "step up their game plan." A strong internet presence, video marketing, and professional staging and photos are very important during these times. She feels it is crucial for people and their agent to identify the unique characteristics of their home and tell its story well.

For the buyers out there, Dickens believes it is always a good time to purchase a property versus renting – if they can accept that they may need to hold it for five to 10 years. The days of purchasing a property and selling it in a couple of years with expected gains have passed. Just as a seasoned investor buys for long-term gains, so should buyers share in this philosophy, said Dickens.

Over the course of six to 10 years, homeowners have seen an average of a 3 percent increase on the value of their real estate investments. And, unlike the stock market, homes can't disappear. Dickens points out everyone must live somewhere, either paying rent or a mortgage. At a minimum, in a purchase a person is paying down a loan (building equity) with the ability to right off the interest from taxes (if that benefit stays in place). Paying a landlord rent yields no return.

"If you haven't spoken to an experienced lender lately, you should," said Dickens. "There are new programs to help first-time or low-income buyers."

Dickens said the general rule of thumb is for a person to keep their housing payment, including taxes and insurance, at or below 35 percent of their income. Dickens advises to get the advice of a Realtor and qualified lender in order to make a wise purchasing decision at any stage of the Real Estate cycle.

Dickens' data for reporting periods ending Oct. 31,2018 and reporting by Nov. 15,2018 came from Sandicor, Inc. and CRMLS, San Diego multiple listing services for Realtors. This report represents properties listed or sold by various brokers in the region. She uses this information as a community service to analyze market trends and provide professional insight into the real estate activity. Dickens is a licensed Realtor (California DRE#01268111) in the Bonsall office of Coldwell Banker Village Properties, 5256 S Mission Road, Bonsall, Ca. at 808-265-9823 (voice or text).