How the Fallbrook real estate market has evolved over the past decade
Last updated 3/30/2023 at 3:02pm
Coldwell Banker Village Properties
As a real estate broker with over 35 years of experience in Fallbrook, I have seen firsthand how the market has changed over the past 10 years. In this article, I'll talk about how the Fallbrook real estate market has changed, focusing on property values, the “new Fallbrook buyer,” the relationship between supply and demand, and recent changes to interest rates.
Over the past decade, one of the most notable changes in the Fallbrook real estate market has been the rise in property values. The average sold price of homes in Fallbrook has steadily increased from $484,325 in 2013 to $912,443 in 2022. This upward trend has been partly driven by the limited supply of available properties in the area, creating a competitive market where buyers must act quickly to secure their dream home. As more buyers compete for a limited supply of homes, property values have risen accordingly.
However, the Fallbrook real estate market is not without its challenges. One of the most significant challenges facing buyers and sellers is the limited supply of available properties. The number of listings in Fallbrook has fluctuated over the past decade, with a notable decrease in the number of listings in 2018 and 2021. Because fewer homes were listed, the market became competitive, and buyers needed to move quickly and decisively to get their dream home.
Interest rates are another critical factor continuously impacting the Fallbrook real estate market. When interest rates change, they can significantly affect how much buyers can afford to pay for a home and how the supply and demand of the market work.
In 2022, interest rates spiked dramatically, with the average 30-year rate jumping from 3.22% in January to a high of 7.08% at the end of October. This increase of nearly 400 basis points (4%) in just 10 months significantly impacted the local real estate market, making it more expensive for buyers to finance their home purchases.
The recent rise in the number of homes for sale in Fallbrook is a good sign that the market may be moving toward a more balanced relationship between supply and demand. As real estate agents in Fallbrook, we have noticed that buyers from all over the state are becoming increasingly interested in the area.
Over the past several years, the number of people working from home has significantly increased, giving buyers more flexibility in where they can live. Fallbrook is uniquely positioned to attract these buyers, offering a desirable combination of space, privacy, and a relaxed lifestyle.
In the wake of the COVID-19 pandemic, we have seen an even greater influx of buyers looking for a change of pace and a slower pace of life. Fallbrook is an excellent place for these buyers because it gives them a break from the stress of work and a chance to get back in touch with nature and their community.
One of the most notable trends we have seen in recent years is the growing number of families choosing to make Fallbrook their home. With its large lots and acreage properties, Fallbrook provides a safe and spacious environment for families to grow and thrive. The area's good schools, recreational opportunities, and a strong sense of community make it an ideal place to raise a family.
Another group of buyers increasingly drawn to Fallbrook is retirees looking for a peaceful and welcoming community where they can enjoy their golden years. Fallbrook's mild climate, beautiful scenery, and relaxed lifestyle make it an ideal destination for retirees looking for a tranquil and fulfilling retirement.
Despite the challenges the Fallbrook real estate market has faced over the past decade, there is much to be optimistic about as we look to the future. With strong property values, a growing demand for luxury homes, and a strong sense of community, Fallbrook remains an attractive destination for buyers, sellers, and investors alike.
While there will always be challenges to navigate, I believe Fallbrook will continue to be a desirable destination for those seeking a high quality of life in a beautiful, welcoming community.
Chris Hasvold, broker/owner of Coldwell Banker Village Properties, can be reached at 760-728-8000 – office or 760-604-1700 – mobile.