2016 Scores Significant Gains Over Prior Year
FALLBROOK, Calif., Jan. 6, 2017 — Real estate activity in two prime North San Diego County markets closed the year on several high notes as prices and volume showed expected strength, Jerry Kalman, a realtor® with HomeSmart Legends here, reported today.
“December home sales in Fallbrook and Bonsall, paced by the closing of several high-end properties, came in 16 percent better than December 2015 and eight percent above the prior month. Volume also showed strength though it lagged last year by 16 percent,” he reported.
Looking at homes coming off the market, an indicator of future activity, the average price and number of properties going into escrow declined in December, but less than typical. The average price of those coming off the market dipped six percent from November to $563,000, while the total number of escrows at 71 properties dropped 14 percent. Time on the market for those entering escrow stretched out again, coming in at roughly two months.
Kalman reported that the inventory dropped below 200 units as realtors pulled many listings from the market in the final month of the year. A series of prematurely expired listings were engineered by agents and their sellers to freshen the appearance with new listings at the beginning of 2017. “By the end of January the inventory will approach 220 units, almost 20 percent more than at the moment,” he said.
Cash buyers represented 17 percent of the December transactions while VA/FHA transactions accounted for an astounding 35 percent of the activity as it appeared lenders worked to clear their books of these transactions.
“Some 19 percent of the sales in December were at or above the original asking price, and most were VA/FHA transactions,” Kalman said. “Almost all of those that sold at or above the original asking price came off the market within a month of when they were listed.”
He noted that the average selling price per square foot in the two communities, an important metric used here to price homes, increased to $260, with Bonsall rising 21 percent to $281 based on strength in high-end homes. Fallbrook had an average selling price per square foot of $239, a nominal dip from the prior month.
At the high end, six homes, three in each community, sold. Half of those homes above a million dollars averaged less than two months on the market.
Approximately one fourth of the 50 active homes on the market priced above a million are in Bonsall. Four million-dollar-plus homes, all in Fallbrook, entered escrow in December after averaging four months on the market.
Condo activity was mixed in the month as five units sold, all in Fallbrook, and they were below the original asking price. With one exception, the average market time for those condos declined to less than a month.
Ten more condos were in escrow, six in Fallbrook. Of the seven condos that came off the market in December, four were in Fallbrook.
Eleven condos were on the market entering January, eight of them in Fallbrook. The average market time for those condos in the active inventory was almost four months.
Comparing 2016 with 2015
Overall, 2016 was a better year for local real estate than even a strong 2015 was. For 2016, average prices were four percent better than 2015, while volume was up seven percent. Time on the market was significantly improved, showing a 27 percent drop to under two months.
Ironically, volume among condos and high end homes came in less in 2016 than in 2015. Prices were up nine percent for condos and marginally lower for high end homes.
These results at the two extremes indicated much of the strength for 2016 was in the mid-range of the market, a healthy indicator for Fallbrook and Bonsall real estate.
Kalman´s data for the reporting periods ending December 31, 2016, came from Sandicor, Inc., the area’s multiple listing service for realtors. It represents properties listed or sold by various brokers in the region. He uses this information as a community service to analyze market trends and provide professional insight into real estate activity. Kalman is a licensed realtor (Calif. BRE # 01328697) in the North County office of HomeSmart Legends, 701 S. Main, Fallbrook, at (760) 468-4689 (voice or text) or email@example.com.
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.