NORTH COUNTY - A sharp drop in sales volume for North County homes in September contrasted with flat median prices, according to a report released Tuesday by the North San Diego County Association of Realtors.
The sales drop indicates that tightening credit standards are putting stress on the local housing market, real estate agents and economists said.
The number of single-family detached homes sold in North County declined from 613 in September 2006 to 398 last month, a drop of more than 35 percent.
Although the median sales price of detached homes in North County rose by 1.6 percent, to $630,000, in September compared with a year ago, the price per square foot fell to the lowest level in a year.
The median for detached homes in San Diego County as a whole fell by 2.6 percent, to $550,000, compared with a year ago, according to the monthly North San Diego County HomeDex report.
In a softening market, changes in sales volume can sometimes foreshadow changes in price.
"The median price doesn't tell the whole story," said Robert Brown, an economics professor at Cal State San Marcos who compiles the report for the association. "Sales volume in the midrange has fallen dramatically, with some strength at the high and low ends."
For example, sales of detached homes between $500,000 and $600,000 have been cut in half over the last year, he said.
The decline is coming in part because mortgage lenders are tightening their standards in response to increasing delinquencies and defaults from loans made to borrowers with shaky credit, real estate analysts say. More prospective borrowers are having their applications denied or granted with less favorable terms than a year ago.
Monthly sales of attached homes - condominiums and town houses - in North County also fell by more than 20 percent compared with a year ago, to 172 units, in September.
The median sales price of attached homes in North County declined from $395,500 a year ago to $364,000 in September, a drop of 7.85 percent.
The median price for all categories of North County homes together declined to $535,000 in September.
While falling elsewhere in the county, the median sales price of North County's detached homes still rose slightly, Brown said. This may reflect larger homes coming to market this year, he said.
"North County is retaining value a little better than the rest of the county," said Mark Oatman, president-elect of the North San Diego County Association of Realtors.
He said the report shows that there is some pressure on prices to fall further over the next few months.
"Because of signs of lengthening time for a sale, people may be motivated to reduce their sales prices a bit," said Oatman, who works with Prudential in Bonsall. "That will give buyers an opportunity."
- Contact staff writer Quinn Eastman at (760) 740-5412 or qeastman@nctimes.com.
