July Real Estate Market Report for North San Diego County

NORTH SAN DIEGO COUNTY REAL ESTATE
IMPROVES IN JUNE AFTER SLOW MAY, SAYS KALMAN

FALLBROOK, Calif., July 6, 2009 --- "Significant volume increases amid continued downward price pressures occurred in North San Diego County’s real estate market during June,” Jerry Kalman, Realtor® with RE/MAX United, reported today.
Last month a 40 percent volume increase over June 2008 partially offset a 30 percent year-to-year price drop in Bonsall and Fallbrook. Compared to May 2009, prices jumped 15 percent along with a 24 percent increase in volume. He attributed the monthly spike in June to a reduction in mortgage interest rates from short term peaks in May.
Kalman said that the overall inventory of available homes in Fallbrook and Bonsall continued to decline, dropping to 317 active listings, and the average listing price of all properties on the market increased slightly to $855,637, or $255 per square foot.
Entering July, the number of properties in escrow rose to 137, carrying an average asking price of $374,424, or $166 per square foot, both modest increases over May.
“Last month distressed properties once again accounted for a higher percentage of activity than other transactions,” Kalman said, “as 65 percent of the selling properties in these prime North San Diego County communities were either lender-owned or short sales. Nearly 20 percent of those that sold closed escrow above the original asking price, indicating possible multiple offers. Overall in June, homes sold at average prices of $329,144, or $161 per average square foot. Discounts off original listing prices soared to 19 percent.”
Of transactions neither lender-owned nor a short sale, the average selling price of $537,496, or $188 per average square foot, was 42 percent above the gross Fallbrook/Bonsall average and nearly 50 percent higher than homes in this category in May, a very positive sign, he noted.
High-end properties comprise one fourth of the local market. This segment remained quiet as only one home sold for more than $1 million, and one went into escrow. Two condos in Bonsall and one in Fallbrook sold. Entering July, ten condos were in escrow while 16 remained on the market, six in Bonsall and 10 in Fallbrook.
Kalman said prices leveled off throughout the region. Comparing Fallbrook and Bonsall with neighboring North San Diego County communities, he said homes that closed escrow here on a price per square foot basis remained lower than the $260 in Carlsbad, $201 in Oceanside, $187 in San Marcos and $168 in Vista, but slightly better than $156 in Escondido.
Kalman uses data from Sandicor, Inc., the multiple listing service for realtors in San Diego County, for June 1 through June 30, 2009, that represents properties listed or sold by various brokers. He uses the information to analyze the market and provide personal insight into real estate dynamics and trends as a community service.
Jerry Kalman is a licensed realtor (Calif. DRE #: 01328697) in the Fallbrook office of RE/MAX United, 1667 Mission Rd., Fallbrook, CA 92028, and can be reached at (760) 468-4689 or by email at jerry@jerrykalman.com.