Local home prices continue to increase

Rick Monroe

Special to Village News

It’s a great time if you’re selling your home – prices are continuing to skyrocket – but if you’re looking to find a home or are a real estate agent, beware.

“It’s a horrible time for them,” said Chris Hasvold, real estate broker and owner of Coldwell Banker Village Properties. “There are only 81 detached single-family homes currently listed in Fallbrook and I’d estimate 500 real estate agents. The math isn’t very good!”

The market statistics for August were recently released and Hasvold offered his assessment in a phone interview.

About the prices, the number of homes sold last August was 92, compared to 93 this year. The average sales price increased 17.7% from $679,376 to $799,925. The median sales price increased from $622,500 to $750,000, a 20.5% increase.

“The price increases are unprecedented,” Hasvold said. “The reason is that both inventory and interest rates are so low.”

He noted that the 81 homes listed in Fallbrook during August were 20.6% less than the 102 homes listed in August 2020.

“I never imagined I would see this kind of demand,” Hasvold added. “Back in 1997-2004, we would have about 200 homes listed each month. The agents in town who are making sales are doing well with large commissions, but there are so many who are struggling to make a sale, and often getting outbid.”

Hasvold noted the traditional formula of 80% of the sales being made by 20% of the agents has changed. “Today, it’s more like 95% by 5%. There are so many more agents in town than listings, that it’s mind boggling to me,” he said.

“Unless mortgage rates or inventory increases, I think we’ll continue in the same pattern,” he added. “Some time there needs to be a correction, because incomes are not going to increase by 20% the same way home prices are.”

The Realtor said one of the reasons sales may be down for August is that this year families are resuming the back-to-school schedules, and many don’t want to move at this time.

The report by the North San Diego Realtors HomeDex showed single family home prices in Bonsall declined. However, Hasvold said the numbers were skewed because there were only five sales in August, compared to 16 in August 2020. The median home price was $975,000 in 2020 compared to $797,500 this year, a 18.2% decline. The average home price went from $1,135,786 to $968,787, a 14.7% decrease. The “rolling 12-month” price of homes is still showing large gains, the median price from $760,000 through August 2020 to $1,045,000 through August 2021.

Home listings in Bonsall are also low, from 14 last August to seven this year.