North County real estate: There is a remarkable surge in demand for properties
Median sales price climbed 27% to $645,000
–This 2021 second quarter Real Estate Report, for North County, reflects the remarkable surge in demand for properties in the community. The pricing numbers far surpass any historical comparisons. Our economic recovery is in full swing with different levels of activity in certain property categories.
Some 475 homes sold in the second quarter which is 50% more sales than the pandemic-influenced 305 sales in the 2020 second quarter. The median sales price climbed 27% to $645,000 and the average sale price jumped to $738,000. Inventory is shrinking with only 160 available homes for sale today in the North County. The median price of the listed product is $839,000 and the average asking price is $1,355,000. Overall, we should see 2,000 homes sell this year.
There is more commercial activity today than any time in recent years. Commercial pricing has not been inflated which makes projects more attractive. Developers are looking to do multi-family, industrial, and hotel projects. Retail and office demand remains tepid. Large ranch properties are seeing growing interest from buyers.
Some larger residential single-family projects are nearing or at groundbreaking status. Material costs and COVID-19 have delayed some of these projects. We think that smaller builders will get back into the game as material costs drop and demand remains firm. Buildable in-fill lots are beginning to look attractive for spec development.
Our wine sales have been very good. Tourism has rebounded and it’s stronger than ever historically. Grape pricing is much stronger going into this harvest. There are a handful of vineyard properties for sale and activity is at a moderate level. There remains a gap between seller price expectations and what buyers are willing to pay for vineyard properties.
There is no let-up in the migration out of the urban areas. A strong economy, low interest rates, and strong personal savings are continuing to fuel the Great Reshuffling. Real estate prices in both Los Angeles and the Bay Area remain strong which provides the capital to existing homeowners to secure their suburban dream. As COVID-19 wanes we should have more sellers in the North County. It’s a strong sellers market today.
–By Pete Dakin
Broker/Owner of RE/MAX Parkside Real Estate