Fallbrook real estate market health improves
Thursday, April 18th, 2013
Issue 16, Volume 17.
Currently, there are only 21 homes for sale for over $1 million in price. There are 67 homes actively available for between $500,000 and $1 million, and 47 active listings below $500,000.
At this time, the most expensive home for sale in Fallbrook is priced at $2,988,000, and the least expensive property for sale is listed for $179,000. The average priced home comes in at $766,123 with a median price of $639,000. This is according to listing information statistics from the San Diego Multiple Listing Service.
The Altos Research, www.altosresearch.com/CA/fallbrook-real-estate reports the median home price in Fallbrook is $548,613 as of April with the MAI at 36.96%. The reason for the difference in calculations is because The San Diego MLS reports properties that are listed with agents within San Diego County, while the Altos report includes property sales that are listed by out-of-area agents that are not a member of NSDCAR or SDAR.
Local area agents better understand Fallbrook therefore they sell Fallbrook properties for more. Homes in Fallbrook that are priced correctly according to their neighborhood and quality of construction receive multiple offers and are in escrow with back up offers within seven days while the average property is on the market for 140 days.
The average price per square foot currently is $206. Homes are fetching between $145-$284 per square foot, depending on the quality of construction and the need for renovation or remodeling.
With the growing demand from out-of-area buyers interested in moving to Fallbrook comes frustration. Inventory is at an all time low. Qualified buyers experience feverish competition with multiple offers per property. Sometimes it takes up to three or four written offers before they secure a property in Fallbrook.
Currently, there are only 13 homes available in the $400,000 - $500,000 price range; 28 homes $500,000 - $600,000; 25 homes $600,000 - $700,000; 16 homes $700,000 - $800,000; 7 homes $800,000 - $900,000; and 28 homes $900,000 and above.
To make the situation even more interesting, the upward movement with housing prices has made the appraisal process particularly complicated. In the past six months Fallbrook has been experiencing a healing of its housing market. While in 2012 the majority of home sales were either short sales or bank owned properties, 2013 is changing rapidly and we’re seeing more and more traditional home sales.
The lower home sale prices that have occurred in the past five years, are coming to an end. With the price per square foot climbing to $250, the distressed home sale market is coming to an end.
Now the seller who needs to sell in most cases no longer needs to sell short. Better quality homes are becoming available and the buyers are willing to pay more for a better product. The distressed market is ending so quickly that appraisers sometimes have a difficult time bringing in property values on traditional home sales, even though there are, in many cases, multiple offers on the subject property.
There are currently only 20 homes in Fallbrook listed in the San Diego MLS in the "contingent" status. A home that is listed in the MLS as "contingent" is a home being sold that needs the approval from the bank to accept a sale price short of its current mortgage note. Bank-owned property is almost a forgotten product. Fewer and fewer distressed sales are occurring.
Fallbrook is experiencing a healthy real estate market. More than 75 percent of homes currently in contract are traditional sales. Fewer homes are vacant.
This market is also creating a better qualified buyer. Today’s buyer in most cases has 20 percent to put down on their home purchase. Surprisingly there are a number of cash purchases being made for higher priced homes. The cash purchases are helping with the appraisal process.
As Fallbrook continues to climb back towards a healthy economy, downtown store fronts are lighting back up where there once were dark, vacant shops. Local contractors are getting busier again. Local golf courses are reporting an increase in tee times and some restaurants once again have a wait for seating on weekend nights.
If you’re considering listing your home for sale, please consider interviewing an agent from a local real estate office. Statistics show that local Realtors better understand the Fallbrook market and prices homes to sell in the shortest amount of time for the highest possible price.
Local Realtors keep their money in local banks, buy local groceries, spend their money in local restaurants, buy local gas, and employ local contractors to repair and remodel homes to make them ready for the real estate market.
Chris Murphy can be reached at (760) 310-9292.
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