As a real estate broker with extensive experience in Fallbrook, I have witnessed the market’s evolution over the past ten years. In this article, I will discuss the changes in Fallbrook’s real estate market, focusing on property values, the “new Fallbrook buyer,” the balance between supply and demand, and recent shifts in interest rates.
Over the past decade, Fallbrook’s real estate market has increased property values. The average sale price of homes in Fallbrook has consistently risen over the past ten years, from $484,325 in 2013 to $912,443 in 2022. The limited supply of available properties has contributed to this upward trend, creating a competitive market where buyers must act quickly to secure their ideal home. Property values have increased accordingly.
Nonetheless, the Fallbrook real estate market faces challenges. One of the most prominent challenges for buyers and sellers is the limited supply of available properties. The number of listings in Fallbrook has varied over the past decade, with noticeable decreases in listings. Due to a limited number of homes listed, the market became competitive, requiring buyers to act quickly and decisively to obtain their dream home.
Interest rates are another vital factor constantly influencing the Fallbrook real estate market. When interest rates change, they can significantly impact how much buyers can afford to pay for a home and how the market’s supply and demand function. In 2022, interest rates rose sharply, with the average 30-year rate climbing from 3.22% in January to 7.08% at the end of October. This increase of nearly 400 basis points (4%) in just ten months significantly affected the local real estate market, making it more costly for buyers to finance their home purchases.
The recent increase in the number of homes for sale in Fallbrook is a positive sign that the market may be moving toward a more balanced relationship between supply and demand. As real estate agents in Fallbrook, we have observed that buyers nationwide are increasingly interested in the area. Over the past decade, the number of people working from home has risen significantly, granting buyers more flexibility in where they can live. Fallbrook is uniquely positioned to attract these buyers, offering a desirable blend of space, privacy, and a relaxed lifestyle.
Following the COVID-19 pandemic, we have seen an even more significant influx of buyers seeking a change of pace and a slower lifestyle. Fallbrook is an excellent location for these buyers because it offers a respite from work-related stress and an opportunity to reconnect with nature and their community.
A notable trend we have observed in recent years is the increasing number of families choosing to call Fallbrook home. With its large lots and properties with acreage, Fallbrook provides a secure and spacious environment for families to grow and flourish. The area’s outstanding schools, recreational opportunities, and strong sense of community make it an ideal place to raise a family.
Another group of buyers increasingly attracted to Fallbrook are retirees searching for a peaceful and welcoming community to enjoy their golden years. Fallbrook’s mild climate, stunning scenery, and laid-back lifestyle make it an ideal destination for retirees seeking a serene and satisfying retirement.
Despite the challenges the Fallbrook real estate market has faced over the past decade, there is much to be optimistic about as we look to the future. With solid property values, growing demand for luxury homes, and a strong sense of community, Fallbrook remains an appealing destination for buyers, sellers, and investors. The last ten years have reinforced my confidence in our area and its potential.