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| Parkside Real Estate | |||||
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| First
Half 2002
North County is experiencing a pivotal moment in the development of our community. One need only look at the downtown restaurants, Barney Schwartz Park, the airport terminal, the new bridge and our entrance features to grasp the scope of this forward thrust. The North County is gaining newfound stature and significance in the California dream. Real estate is at the forefront of this magic moment. The first half North County sales climbed to $265,000,000 dollars. This sales figure is similar to the first half of 2001 but the components of the total figure reflect some interesting trends. Residential single family homes comprised $128,000,000 dollars of the total sales figure. The average selling time for homes dipped below 4 months for the first time. Pricing on new and used homes remained strong with double digit price increases over the previous year. The average purchase price for a residential single family North County home came in at $269,000. There are more seller concessions, in regards to repairs, but pricing is strong. North County has been a leader in the affordable home crusade through cooperative and responsible planning and building departments. Though home prices have soared, our buyers still get value for their dollars. Homes on acreage, both ranchettes and estates, passed the 88 million dollar mark with an average sales price of $407,000. Small acreage parcels, 10 acres and below, are scarce in supply and pricey. The strong acreage pricing coupled with short supply have given a strong boost to the homes on acreage properties. Smaller homes on acreage properties tend to sell close to replacement value while large estate properties lag well behind replacement value in sales price. The more unique the property the more the "replacement gap" widens. Larger bare acreage parcels, 40 acres on up, have rebounded in demand. The wine grape price weakness significantly cut into demand this past year for larger acreage properties. These past few months have been a reawakening for these larger parcels. Demand is good and prices are fair to good. These larger parcels are attracting urban buyers for uses other than planting grapes. For a half a million dollars one can purchase a nice 40 acre parcel. That value is nice when compared to other premier California areas. Major estates, or million dollar properties, have perked up over the last couple months. The high end was dormant for well over a year. Both the stock market and 9/11 took their toll at the high end. Low interest rates and good values have spurred on buyer demand. Quality is still the dominant factor in high end sales. The wine industry has had more economic and cultural impact on our community than any other factor. A number of quality wineries are producing wines that can compete with the best wines in the world. Overall wine grapes are in long supply but Westside wine grapes are still very much coveted by wineries looking to produce quality wines. The weakening wine grape market will clean up over the next few years. Growers tend to adjust rapidly once the money flow stops. The bottom line in this premium grape situation will be quality. The urban areas of the Bay area and Los Angeles continue to experience strong home demand and strong pricing. California is a desirable place to be and our economy is moving forward. The average home price in the Bay area is over $400,000. What will happen when the technology sector rebounds? Perhaps we will look back at this decade as one of the seminal decades in the past century. As the North County market leader we are committed to the Clients in our community. This past quarter we added a veteran agent Michéle Smith and her assistant Debbie Bridge to our office. Additionally Rick Ewens joined us with a background in new home sales. These three individuals expand our coverage, elevate our service level and provide added value to our valued Clientele in North County. Outstanding agents, outstanding results. Pete Dakin |