Inventory Declines at Typical Pace
FALLBROOK, Calif., Dec. 6, 2016 --- Real estate activity in two prime North San Diego County markets bucked the seasonal trend as prices and volume remained firm entering the final month of the year, Jerry Kalman, a realtor® with HomeSmart Legends here, reported today.
“November home sales in Fallbrook and Bonsall showed surprising strength compared with November 2015 as prices were 23 percent better than a year ago and volume here was up nine percent. Significantly, volume was equal to October while prices slipped by six percent over the prior month,” he reported.
As expected, the average price and number of homes going into escrow declined in November, but less than typical for the 11th month. The average price of those coming off the market dipped four percent from October to $598,000, while the number of escrows at 83 properties dropped 11 percent. Time on the market for those entering escrow stretched out again, approaching the yearly average of two months.
Entering December, the inventory declined 15 percent to 206 homes on the market, typical for this time of the year. Kalman expected the inventory to drop below 200 units as homes are pulled from the market in the final month of the year.
Cash buyers represented 20 percent of the November transactions while VA/FHA transactions accounted for 25 percent of the activity again.
“Some 20 percent of the sales in November were at or above the original asking price, and most continued to be conventional transactions,” he said. “All but three that sold at or above the original asking price came off the market within two weeks.”
He noted that the average selling price per square foot in the two communities, an important metric used here to price homes, dipped six percent to $232, with Bonsall eight percent less than October at $220. Fallbrook had an average selling price per square foot of $244, a four percent decline from the prior month.
At the high end, three homes, all in Fallbrook, priced over a million dollars sold. Two of those homes above a million dollars averaged less than four weeks on the market.
Slightly more than one fourth of the 54 active homes on the market priced above a million are in Bonsall. Two million-dollar-plus homes, both also in Bonsall, entered escrow in November after averaging more than half a year on the market.
Condo Activity Begins to Languish
Condo activity was mixed in the month as six units sold, four in Bonsall, and all of them below the asking price. Two in Fallbrook sold above the original listing price. The average market time for those six condos declined to less than a month.
Seven more condos were in escrow, six in Fallbrook. All five that came off the market in November were in Fallbrook.
Fourteen condos were on the market entering December, nine of them in Fallbrook. The average market time for those condos in the active inventory was more than three months.
HomeSmart, founded in 2000, has more than 10,000 agents and broker associates in offices throughout 15 states. HomeSmart Legends is the first franchise in the HomeSmart system. The Temecula office is located at 27645 Jefferson Ave., Suite 116, Temecula, CA 92590.