Home values are continuing to rise in Fallbrook, and based on the final statistics for 2015, they have now returned to the levels seen in 2003 and 2004.
Chris Hasvold of Coldwell Banker Village Properties provided a snapshot into the past, “Prices shot up dramatically in 2013 after three years of stagnation. The good news was that many of the homes that were “underwater” (owners owed more on their home than it was worth) quickly regained some equity. The bad news was that a 20+ percent increase in a single year was one of factors that lead to the crash in 2006-2007. The market just can’t sustain that level of appreciation indefinitely. Fortunately for the overall market, the appreciation rate slowed to a more sustainable rate of 5.5 percent in 2014 and 6.5 percent in 2015.”
For the calendar year 2015, the average sales price of a single family home in Fallbrook was $542,300. The average “asking price” was $17,231 higher than that.
Hasvold provided insight on that. “After so many years of a ‘buyer’s market,’ the sellers are eager to regain as much equity as they can, as quickly as they can. It’s human nature to want more and try to ‘help the market’ along by pushing the prices, but you can only go so far. Buyers (and banks) still remember what happened to the market and don’t want to see that happen again.”
To further explain the reality of listing prices versus selling price in the Fallbrook market, Hasvold shared relevant data he collects. “The numbers show that just because you list a home at a higher price than the market value, you are not going to get that price. Once the price drops into the correct market range, then it sells for 97 to 98 percent of the listing price.”
In looking at the past 15 years’ (2000 through 2015) local real estate market conditions, prices were lowest in 2000 with an average sales price of $318,716 followed by 2001 at $362,751 and third, 2009 at $381,164.
The peak during that 15-year period hit in 2006, when the average sales price was recorded as $686,172. The second and third highest average prices were realized in 2005 at $669,688 and 2007 at $651,655.
As far as what the “hottest” (most desirable) homes on today’s market are, it remains those at the low end of the market, but that isn’t where the greatest volume of sales are seen.
“The lower-priced homes will always be in high demand and sell quickly, but the most active price range, percentage wise, compared to last quarter and last year is $500,000 to $750,000.”
Writer’s Note: Market information for this article was based on reports by Sandicor, San Diego County Multiple Listing Service, which may not reflect all real estate activity in the market.