Purchasing
- Your first home
- Your next home and move
- An investment property
- A vacation home
Refinancing
- To tap your home equity
- To save money
- To avoid rate increases
- To lower monthly payments
Home Equity
- Loans and lines of credit
- Finance major expenses
- Consolidate Debt
- Invest
San Diego Market: Supply Higher Than Demand
There has been much
concern from both property
buyers and sellers in San Diego
over the past eight months during the
market’s “cooling”
period. Emmet Pierce from The San
Diego Union Tribune wrote an article
July 20, 2006, “S.D. real estate
concerns Fannie Mae,” that explains
why the market is currently more of
a buyers
market.
“There is no question that the
San
Diego housing market has slowed.
Home price gains . . . are certainly
down from their peak and perhaps will
fall.” Fannie Mae Chief Economist
David Berson said July 19th.
Berson praised the San Diego for its
past price gains, continued to express
his worries about the future of the
San Diego market. “We view it
with some trepidation. It is one of
the areas we are concerned about.”
Then the focus was shifted directly
to the condominium market in San Diego.
“Berson said the condo market
here is at risk ‘because the supply
has gone up dramatically.’ There
have been ‘lots of condo conversions.
The investor share probably has been
far more active in the condo market.’”
Since the supply is much greater than
the demand, condo buyers will be able
to wait until sellers are forced to
sell low.
Investors favor condos because they
are easier to sell quickly. “Condos
are far more commodity-like than single-family
homes,” Berson said.
“New homes sales this year will
fall by 9 to 10 percent. . . . Existing
home sales, we think they will fall
this year by about 7 to 9 percent,”
Berson said.
“In June, San Diego County experienced
its first year-over-year price decline
in a decade. It was the 24th consecutive
month of year-over-year decline in sales.”
To further illustrate that the San Diego
housing
market is currently in a downfall,
yesterday the “Commerce Department
reported that the home construction
fell by 5.3 percent in June.”
San Diego is not alone in this market
downfall. Last year, home sales across
the country rose by about 11 percent.
By this year’s end, home sales
will fall by about 3 percent.
“In recent years, housing has
been one of the major forces in raising
the economy,” Michael Carliner,
an economist with the National Association
of Home Builders, said. “For the
time being, economic growth “will
have to come from other sectors, like
business
investment.”