New Construction Continues to Bolster Real Estate Activity in North San Diego County markets

FALLBROOK, Calif. - July 9, 2019 - PRLog -- June home prices at an average of $631,000 were up three percent over May but once again showed a decline from the prior year when real estate activity was noticeably stronger, Jerry Kalman, a realtor® here with HomeSmart Legends, reported today.

Average June 2019 selling prices in Fallbrook and Bonsall were four percent less than $660,000 in June 2018, he said, noting that time to sell at 67 days was significantly worse than levels achieved in both May 2019 and June 2018.

According to Kalman, selling volume at 89 units showed a slight increase over June 2018, but was off six percent from the stronger prior month when 94 homes sold.

VA/FHA/USDA transactions slipped to 27 percent of the transactions while cash deals were down to a meager 11 percent of activity in June.  Once again, more than a third of the homes sold at prices equal to or greater than the original listing prices, he reported, and half of those were VA/FHA transactions.

He noted that homes in escrow dipped to 110 properties here; with 78 going into escrow in June, another decline from a peak earlier this year.  More than 10 percent of those in escrow are new construction, most of them east of Fallbrook along the I-15 corridor.

The average time on the market for those in escrow, an arbiter of things to come, finally improved to 57 days; but for new homes it remained about three months.  The average price of those in escrow improved to $683,000.

New construction, mostly in Fallbrook and along the I-15 freeway, accounted for ten percent of the sold homes.  Reflecting an acceleration of activity on the eastern edge of the community, in June new construction represented approximately 20 percent of the homes that sold here.

Kalman said the inventory decreased again, dropping slightly to under 320 homes.  Entering July, five percent of the inventory remained among new construction in both communities.  Overall, Bonsall accounted for 50 available properties entering the second half of the year while the larger community of Fallbrook had about 270 single family homes.

"Average price per square foot helps realtors value homes in diverse communities like Fallbrook and Bonsall," he said.  "At an average of $284 per square foot in June, sold properties in the local market rose four percent from May, reversing a brief downward trend.  Bonsall rose $30 to $295 per square foot, while Fallbrook was down slightly to $272 per square foot."

Kalman said the county-wide San Diego average dipped $5 to $403 per square foot.

At the high end, five homes priced over one million dollars closed escrow in June, four in Fallbrook.  Eleven million-dollar-plus homes, however, are in escrow, and that should bolster results in July and August.  Almost 90 of these properties are in the active inventory, averaging close to four months on the market.

At the other end of the spectrum, nine condos sold in June, six in Fallbrook.  He said that nine other attached properties are in escrow, five of them in the new developments east of Interstate 15.  The inventory of active condo listings was 12 units at the end of June with an average market-time above two months.  Half of them are existing units in Bonsall.

First Half Shows Slowing Over 2018

Comparing the first half of 2019 with the prior year, he said that the market slowed in 2019 despite the emergence of new properties along the I-15 corridor.  "The number of sold homes dipped seven percent this year from the first six months of 2018, and prices were off four percent to an average of $612,000 since January 1, 2019."

He noted that the average time on the market this year was two months versus 48 in the first six months of 2018.

Kalman´s data for the reporting periods ending June 30, 2019, and reported by July 6, 2019, came from CRMLS, a regional multiple listing service for area realtors.  This report 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. DRE # 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 14,000 agents and broker associates in offices throughout 17 states.  HomeSmart Legends, the first franchise in the HomeSmart system, is located at 41823 N. Enterprise Circle, Suite 130, Temecula, CA  92590.