Market Review

North County Real Estate Today
Review and Forecast 2010 Forecast and Review

Fear is rapidly leaving the North County Real Estate scene. The number of real estate transactions topped 1200 sales in 2009 with over 800 residential single-family home sales. Total sales volume was close to 500 million dollars. This sale increase equates to a 9% bump over 2008 numbers. There was a lot happening in 2009 and more to come in 2010.

The average sale price of a residential single family home today, in North County, is $301,000. This number represents a nearly 40% drop from the brief average pricing slightly above $500,000. First time homebuyers and investors are very active in this market. Apartment and home rents are not cheap in North County. With the combination of low interest rates and low home prices the monthly payments are very attractive. This price point of $300,000 is very competitive for buyers. We could very well see close to 1,000 homes sell in 2010. This activity is remarkable when one considers the almost complete absence of new construction.

Home pricing is a lagging indicator. The first step in a recovery is transactional velocity or the number of sales. With this current sales velocity we have already seen a floor established in pricing with periodic slight bumps upward. Pricing should be relatively stable but there is more chance of price increases, albeit slight, then price decreases in the core residential market. That's a huge change from the last few years.

Estate homes on small acreage are moving very briskly. These McMansions are selling for well below replacement cost. The values are stunning and the buyers are stepping up and buying. This trend will continue on into 2010 but the supply of these

real-estate-news

North County Real Estate Today
Review and Forecast 2010 Forecast and Review

            Fear is rapidly leaving the North County Real Estate scene. The number of real estate transactions topped 1200 sales in 2009 with over 800 residential single-family home sales. Total sales volume was close to 500 million dollars. This sale increase equates to a 9% bump over 2008 numbers. There was a lot happening in 2009 and more to come in 2010.

            The average sale price of a residential single family home today, in North County, is $301,000. This number represents a nearly 40% drop from the brief average pricing slightly above $500,000. First time homebuyers and investors are very active in this market. Apartment and home rents are not cheap in North County. With the combination of low interest rates and low home prices the monthly payments are very attractive. This price point of $300,000 is very competitive for buyers. We could very well see close to 1,000 homes sell in 2010. This activity is remarkable when one considers the almost complete absence of new construction.

            Home pricing is a lagging indicator. The first step in a recovery is transactional velocity or the number of sales. With this current sales velocity we have already seen a floor established in pricing with periodic slight bumps upward.  Pricing should be relatively stable but there is more chance of price increases, albeit slight, then price decreases in the core residential market. That’s a huge change from the last few years.

            Estate homes on small acreage are moving very briskly. These McMansions are selling for well below replacement cost. The values are stunning and the buyers are stepping up and buying. This trend will continue on into 2010 but the supply of these