June real Estate Volume Sizzles in North San Diego County Markets Amid Downward Price Pressures

FALLBROOK, Calif. - July 6, 2016 - PRLog -- Real estate sales activity strengthened in North San Diego County as a resurgence of entry-level and mid-level buyers paced volume increases, Jerry Kalman, a realtor® with HomeSmart Legends here, reported today.

Sales volume here was 15 percent greater than June 2015 and 11 percent above May 2016.  Average June selling prices in the two communities showed a four percent gain over June 2015; however, at $565,000 it reflected a nominal two percent increase over May when the average price was $554,000.

Kalman said that during June cash buyers continued to trail conventional and VA/FHA transactions, the latter rising to just over 30 percent of the volume after slipping below that level in May.

"Almost one third of the sales came in either at or above the original asking price, and that took place in all segments including at the high-end," he said. "In June, homes sold on an average of 66 days while on the market, roughly 25 percent more time than in May and ten percent more than in June 2015."

Inventory Still Tight

Entering July, 219 Fallbrook and Bonsall homes were in the active inventory, eight percent less than in May.  Similarly, the number of escrows during June declined 14 percent to 114 as 77 homes came off the market in the month.

"Both of those figures foretell of some slack in closed transactions in the coming months as the selling season begins a typical slowdown going into the last half of 2016," Kalman added.

The average time on the market for those entering escrow rose to just over two months, while the average price of the homes off the market was up slightly to $618,000.

He noted that the average selling price per square foot, an important metric used by many realtors to price homes in the area, was $245, a 16 point drop from May, with Bonsall again exceptionally strong for the second straight month.

At the high end, four homes sold above one million dollars, which also helped boost the average selling price in the area.  Entering July, nine high-end homes were in escrow after an average market time of under four months, and more than half of those less than 60 days.  Another 56 of these properties were in the active inventory, 41 in Fallbrook.

Three condominiums, all in Fallbrook, sold in June; and seven condos, five of them in Fallbrook, were in escrow after an average of 27 days.  Another 12 are active listings on the market, six in each community.

First Half Comparisons

"Overall, prices in the first half of 2016 lagged by three percent over those of a more robust 2015 when the average selling price of homes here was $554,000.  In two other important metrics, time on the market and volume, the first half of 2016 weighed in with notable improvement over 2015," Kalman said.

In the first half of 2016, average market time was just under two months, eight percent faster than in the comparable period of 2015.  Similarly, volume this year was a very strong 16 percent greater than last year.

VA/FHA transactions were even at 25 percent of the activity in both years while cash buyers have slipped to ten percent of the 2016 volume.

Kalman´s data for the reporting periods ending June 30, 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 jerry@jerrykalman.com.

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.