North County real estate is unique in its diversity of product and activity. Where else do you have traditional neighborhood homes coupled with thousands of acres of ranches, acreage and vineyards only minutes away? To understand the North County real estate market one must investigate our individual property segments within the context of the entire state economy and agricultural cycles. We do this for you.

     Real estate sales for North County hit $90,000,000 for the first quarter 2002. Residential single-family home sales accounted for nearly $40,000,000 of this first quarter sales figure. The average North County home sale price was $247,000. Buyer activity remained brisk on home sales up to $375,000. New home tracts captured many move up buyers looking to upgrade with equity dollars from the sale of their existing homes. Prices remain strong in existing home sales but there are more seller concessions in regards to repair items. Selling homes above $375,000 is a more challenging proposition with growing inventory and moderate buyer activity. More sellers are willing to take contingent contracts based upon the buyer selling their current home. Home sales are the strongest segment of North County real estate.

     For the first time, homes on acreage sales equaled residential single-family home sales. The average prices for a home on acreage topped $414,000. As a result of this demand, we are seeing strong pricing and strong buyer activity in small acreage parcels up to twenty acres. Developers are actively buying 1 and 2 acre parcels to satisfy buyer demands for ranchettes. Homes on acreage, with listed prices above $650,000, are long in supply with selective demand. Our high-end market is recovering but inventory remains large. Quality is the dominant factor in buyer selection.

     Residential single-family lots are a hot item throughout the North County. Demand for building lots is driven by both developers and consumers looking to build their dream home. Agricultural acreage is at the other end of the demand spectrum. An abundant supply of wine grapes has cooled demand for vacant agricultural acreage and producing vineyard properties. There are some high quality large acreage parcels available today. The Westside acreage parcel is in high demand and short supply.

     Southern California is the primary feeder market for buyers entering our County. Prices and activity remain very strong in Southern California real estate. Inventory remains thin in both Southern and Northern California. The lean inventory situation is pushing up prices and pushing buyers to markets like North County. Most forecasts predict a tepid recovery from the recession and a slow technology recovery. As long as interest rates remain low, we should see good buyer activity from the urban areas.

     Our wine industry is by far the greatest economic asset in North County. National periodicals such as Wine Spectator, Wine Advocate, The Wall Street Journal, The Chronicle and California Grapevine all highlighted North County in first quarter articles. Demand for owning and operating wineries remains high. The wine industry puts us in a position to compete for tourism dollars.

     Commercial property, specifically income producing property, continues to receive great buyer interest. Apartment properties are also in demand from the buying public.

     North County has been discovered by the outside world. Recognition will continue to build in our wine industry, which in turn draws people to our community. Our greatest challenge will be in dealing with growth infrastructure impacts. This challenge is also our greatest opportunity. Issues such as schools, waste, traffic and security must be dealt with on a local basis through citizen involvement. We can decide our future or abdicate control to the bureaucrats from Sacramento. Success is choice.

Pete Dakin
RE/MAX Parkside Real Estate

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