August Real Estate Appears to ``Bottom Out'' in Fallbrook/Bonsall, Says Kalman

BONSALL, Calif.--(BUSINESS WIRE)--Sept. 6, 2006--Two prime real estate markets in North San Diego County appeared to bottom out during August, reflecting a hoped-for normalization of home buying activity, Jerry Kalman, RE/MAX United, reported today.

"Average selling prices for 37 homes that closed escrow in Fallbrook and Bonsall rose ten percent over July 2006 and five percent higher than August 2005 to $705,541, or $291 per square foot. Average time on the market, increased from 61 days in July to 73 in August, reversing a steady downward trend over the prior four months," he said.

Kalman based his forecast of positive results for September and beyond on an acceleration of the number of homes entering escrow in August.

"At month-end, 88 homes were in escrow, a 44 percent increase over July 31 levels," he noted. "The average asking price of those in escrow declined to $699,050, or $298 per average square foot. Nine of those that entered escrow were listed in August."

Active inventory on Sept. 1 showed a marginal increase again, reaching 522 homes, and the average asking price rose slightly to $873,517, or $340 per square foot. He added that 136 new listings came on the market and they averaged $834,519, or $324 per average square foot. One fourth of the available inventory continued to be priced at or above one million dollars.

"One condo closed escrow in August, and three entered in escrow, which indicated activity in single family attached homes increased here in the month," he said. The average price of the 44 condos still on the market remained flat at $375,884. Of the two North San Diego County communities, Fallbrook now represents more than half of the condo inventory.

"Since the first of the year, 381 single family residences sold in these two communities, a 33 percent decline in volume from the first eight months of 2005. Prices through August 31 of the current year were six percent higher than the comparable year-earlier period," Kalman said.