Metrics Show Fallbrook and Bonsall Prices Ahead of 2015
FALLBROOK, Calif., Sept. 7, 2016 --- New escrows in August portend strong real estate activity in the month ahead, Jerry Kalman, a realtor® with HomeSmart Legends here, reported today.
“In August, Fallbrook and Bonsall homes sold on an average of 42 days while on the market, 22 percent faster than in August 2015,” he said. “Meanwhile, average August selling prices in our two communities dropped five percent to $537,000, due largely to a reduction in high-end home transactions in the month. That measure of sales was also two percent above a year ago and still the strongest August since 2007.”
Based on the absorption rate of homes entering escrow in August he expects September metrics to reflect prices easily topping 2015 levels when activity among high-end homes was quiet. He forecast selling volume to slow by about 20 percent.
Kalman said that during August cash buyers represented 19 percent of the transactions while VA/FHA came in at 29 percent of the volume. Both reflect a trend started earlier this year when conventional transactions assumed more than half of the activity.
“One fourth of the August sales were at or above the original asking price, most of them cash or VA/FHA transactions,” he said, adding that quite often sellers increase their selling price when buyers ask for owners to cover some or all closing costs in these transactions.
The price of the homes in escrow rose 11 percent to $678,000; however, the number of escrows at 95 properties dropped 20 percent as 58 homes came off the market in August.
Entering September, 230 homes here were in the active inventory, a slight decrease from July.
He noted that the average selling price per square foot, an important metric used by many realtors to price homes in the area, was $235, with Bonsall at $224. Fallbrook exceeded Bonsall for the first time in several months with an average selling price per square foot of $246.
“Even though only one home closed escrow above one million dollars, entering September, 12 high-end homes were in escrow,” he said, giving rise to his forecast of a strong showing in the market in future reports. Another 58 of these properties were in the active inventory.
Five condominiums, three in Bonsall, sold in August; and six condos, three in each community, were in escrow after an average of 14 days. Another 14 are active listings on the market, nine in Fallbrook.
HomeSmart, founded in 2000, has more than 10,000 agents and broker associates in offices throughout 15 states and two countries. HomeSmart Legends is the first franchise in the HomeSmart system. The Temecula office is located at 27645 Jefferson Ave., Suite 116, Temecula, CA 92590.