OCEANSIDE -- It may be the height of summer, but the yuletide season is in the air this weekend at the Mission San Luis Rey.

While barbecues, beach outings and surfing top to-do lists of many North County residents, thousands of people are starting their holiday shopping early during the Christmas in July event. The largest annual fundraiser for the Old Mission Montessori School on the mission grounds, the two-day shopping extravaganza began Saturday and will continue Sunday at 4070 Mission Ave., Oceanside.

"We come every year and always enjoy it," said Norma Butler of Carlsbad, accompanied by her husband, Dan, and Yorkshire terrier, Muffin. "Last year, we bought six Christmas presents."

"We come almost every year and there's always something to buy," said Dee Porter of Oceanside, visiting with several family members.

A crafts enthusiast, she said she is always inspired by the handiwork she sees.

Don Anthony of Fallbrook returned this year with his friend, Kathy Kahl.

"She's kind of a collector and likes to buy stuff," he said. Plus, "they have good food and it's a fun outing."

The event, which began 33 years ago as a jams and jellies sale, has grown to become one of Southern California's largest artisan fairs, drawing as many as 20,000 people and pulling in between $60,000 and $80,000 annually to help cover operating expenses at the school.

Although the current economic downturn may affect profits from this year's fair, said event co-chair Laura Visco, the number of participating sellers is comparable to last year.

More than 165 vendors are offering hand-crafted items and collectibles, including jewelry, toys, clothes, ceramics, furniture, books, candles and kitchen accessories. Many sell Christmas decor that reflect holiday themes.

The event also features continuous live entertainment, a food court, beer garden, farmers market, bake sale, kids' zone, raffle and silent and live auctions.

Sellers come from throughout the Southwest, and include returning vendors and those new to the event. First-timers include Team in Training, a group that trains athletes for competitions benefitting the Leukemia & Lymphoma Society.

"I know from my experience that this is a good fair and draws a good crowd," said Maryann Donovan of Oceanside, a mother of former Mission Montessori students and former event volunteer, working the Team in Training booth.

"We enjoy this, and it's kind of a preview of our Christmas items and how they're going to sell this year," said Karen Chambers of Chula Vista, who has teamed up with Kay Collins of San Diego to sell handcrafted Christmas items for 10 years at the event. Joining many other vendors, the women sell their handiwork at crafts fairs throughout the region.

"I like this because it's in a nice setting, and it's kick back," said Mona Jin of Walnut, who returned for her fifth year with her husband, Steve, and two grandchildren. "The staff is wonderful to work with and the people are great."

"For us, this is about community" and supporting local causes, said Elaine Cobb of Carlsbad, manning a booth with Sue Dossey of Carlsbad and Martha Morrison of Coronado. The women have offered hand-sewn doll clothes, pillows, bibs, aprons, placemats and other items for more than 10 years at the event.

"We have children's things and get lots of families, since it's a fundraiser at the school," Cobb said.

Members of Girl Scout Troop 4670, many of whom attend Old Mission Montessori School, are selling homemade dog treats at their booth. To earn their bronze award, the girls purchased the ingredients; cooked, packaged and marketed the treats; and will spend the money to help teach school children about the importance of guide dogs.

"I like knowing this is going to help people with disabilities," said troop member Emma Virjee, 11, "and it was really fun." Â

Christmas in July will continue from 9 a.m. to 4 p.m. Sunday, with a live auction planned from 2 to 4 p.m. Admission is free, but a parking donation of $2 is requested. Call (760) 757-3232 or go to www.omms.org.