Low Inventory Levels Bolster Prices

Fallbrook, Calif., March 4, 2018 -- Inventory shortages continued to haunt North San Diego County real estate as February sales volume lagged prior periods, Jerry Kalman, a realtor® with HomeSmart Legends here, reported today.

He said, “A relatively strong showing in escrows, which rose more than 25 percent over January, was a partial offset for an otherwise lackluster month in Fallbrook/Bonsall real estate. More than 60 properties came off the market in February, bringing the total in escrow to 107.”

Only 31 homes closed escrow in February, he added, almost 40 percent less than in February of 2017 and 23 percent off levels achieved in January. An average selling price of $608,000 was eight percent better than February of 2017 and four percent better the prior month.

As a reflection of a persistently thin inventory, 42 percent of the homes sold for prices equal to or greater than the original listing prices. VA/FHA transactions represented 35 percent of the activity while cash deals came in at 19 percent of the sales, levels consistent with a pattern established over the past two years.

Time on the market also showed some encouragement as the period from listing to entering escrow declined to 42 days, a marked improvement over January when it took more than two months to move a home into escrow.

“Price-per-square-foot is an important metric for pricing homes in diverse communities like Fallbrook and Bonsall,” Kalman said. “Coming in at $261 per square foot, the local market showed a near recovery from the disastrous $234 recorded in January. Fallbrook rose 13 percent to $283 per square foot, while Bonsall was up ten percent to $239 per square foot.”

He noted that the county average is running at $398 per square foot, 34 percent higher than this more affordable part of North San Diego County.

Entering March 184 homes were in the active inventory an increase of only ten properties over the number at the beginning of February. Ten of those in the inventory are condos, six in Fallbrook. Five condos, four in Bonsall, are in escrow.

At the high end, there are 50 properties priced above one million dollars, 39 of them in Fallbrook. None closed escrow in February, though there are 16 of these properties off the market now, most with Fallbrook addresses.

“A strong showing at the top of the market in March could help bolster average prices in the area,” he said.

Kalman´s data for the reporting periods ending February 28, 2018, came from Sandicor, Inc. and CRMLS. San Diego and Riverside counties’ multiple listing services for 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. BRE # 01328697) in the North County office of HomeSmart Legends, 701 S. Main, Fallbrook, at (760) 468-4689 (voice or text) or

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.