Homes taking longer to sell, prices leveling off

By: BRADLEY J. FIKES - Staff Writer | Thursday, May 12, 2005 10:31 PM PDT ∞

The average time it takes to sell a North County home has nearly doubled from a year ago, according to the latest report from the San Diego Association of Realtors. Buyers are taking their time, and sellers are willing to be patient, real estate experts say, as the market seeks equilibrium.

This April, North County homes remained on the market an average of 49 days before being sold, more than an 88 percent increase over 26 days to sale in April of last year. The number doesn't include homes on the market but unsold.

Moreover, the year-over-year median price increase has fallen to the single digits. Fewer homes are selling than in April 2004, a year-over-year decline that has been constant since last summer.

Existing North County homes, including condos, sold for a median price of $530,000 in April. That's the same price as in March, and 8.4 percent higher than in April 2004 of $489,000. Sales numbered 1,724 in April, 13.8 percent fewer than a year ago but 4.6 percent more than in March. The pace of sales usually rises during spring and summer, and falls as the holidays approach.

Although the market has cooled since last summer's frenzy, sellers generally are not willing to cut prices, said Alan Gin, an associate professor of economics at the University of San Diego. Instead, they're waiting for a buyer who'll pay the right price.

"People don't have to sell now," Gin said. "They're not being forced to sell because of job losses or anything like that."

Gin was referring to San Diego's healthy economy, which had an unemployment rate of 4.3 percent in March, compared to a revised figure 5.2 percent a year ago. By comparison, the state had a 5.7 percent unemployment rate and the nation a 5.4 percent rate, according to the California Employment Development Department.

From the buyers' perspective, there's no reason to hurry because supply has grown dramatically, said Russ Valone, president of MarketPointe Realty Advisors in San Diego. The number of new listings is up, so buyers don't feel rushed to buy as was the case a year ago, when demand far outstripped supply, he said.

However, Valone said market conditions are not bad for sellers, they're just not nearly as favorable as they were one year ago.

"Forty-nine days ---- that's not bad," Valone said. The median days to sell figure in San Diego has been as long as 120 days, he said.

By the numbers

City/Community Zip Code $0 $0

Carlsbad 92008 $735,000 12%

Carlsbad 92009 $831,000 4%

Del Mar 92014 $1,150,000 -11%

Encintas 92024 $950,000 20%

Escondido 92025 $499,485 -1%

Escondido 92026 $510,000 10%

Escondido 92027 $460,000 13%

Fallbrook 92028 $619,000 25%

Escondido 92029 $585,000 -17%

Oceanside 92054 $534,000 9%

Oceanside 92056 $508,000 12%

Oceanside 92057 $525,000 14%

Poway 92064 $550,000 -19%

Ramona 92065 $540,900 13%

Rancho Santa Fe 92067 $3,150,000 39%

San Marcos 92069 $550,000 6%

San Marcos 92078 $640,000 6%

Vista 92081 $526,500 13%

Valley Center 92082 $665,000 7%

Vista 92083 $470,000 6%

Vista 92084 $539,000 10%

Rancho Bernardo 92127 $890,000 16%

Rancho Bernardo 92128 $659,000 12%

Rancho Penasquitos 92129 $679,000 14%

Carmel Valley 92130 $985,000 4%

Contact staff writer Bradley J. Fikes at bfikes@nctimes.com or (760) 739-6641.