| The trend in the numbers of homes for sale is | | | | This was the third straight month of year over month |
| continuing to increase across the country. Housing | | | | price declines. According to DataQuick, August of |
| inventories are clearly rising. The more houses for sale, | | | | 2006 was the slowest month for home sales in San |
| the more downward pressure there will be on home | | | | Diego since August of 1997. In August of 2005 the |
| sales. | | | | median price of homes in San Diego was $493,000. In |
| A study by ZipRealty has found that housing inventory | | | | August of 2006 the median price of homes in San |
| has increased in 18 major markets across the US. This | | | | Diego dropped to $482000. |
| data is based on condos and single family homes. | | | | The home prices in San Diego county peaked in |
| Look for the markets with the largest increase in | | | | November of 2005 at $518000. With more homes |
| inventory and you will find the markets that will have | | | | coming onto the market the downward trend in prices |
| the least support for current prices. The place that | | | | is expected to continue. According to DataQuick the |
| experienced the largest increase in inventory in August | | | | prices will not head into a freefall. It appears for the |
| was Orlando. In Orlando housing inventory for sale | | | | near future that prices will slowly continue to deflate. |
| increased by 8%. Also in Florida Miami also | | | | This projection is based on the strong economy of |
| experienced a large increase in homes fore sale. In | | | | San Diego County. In this strong economy housing |
| Miami the increase was 5.6%. Florida as a whole has | | | | prices will slowly deflate and then flatten. As long as |
| experienced a large jump in homes for sale. | | | | the economy remains strong (there are no signs of |
| On the west coast the city that has the highest | | | | weakening now) home prices will not go into a freefall. |
| increase in in homes for sale is Seattle which has | | | | The condo market in San Diego may not fare as well |
| experienced an increase of 6.1%. Next is San | | | | as the single family home market. In the condo market |
| Francisco with a housing inventory increase of 5.6%. | | | | there has been a large amount of speculation. The |
| Another indicator to watch is the percentage of | | | | most dramatic price drop is in downtown condo |
| homes whose prices have been reduced in a fixed | | | | housing. In August of 2005 the median price of a |
| time period. In the last ten days 44% of the homes for | | | | condo in downtown San Diego was $654000. In |
| sale in Boston have had their prices reduced. | | | | August of 2006 the median price of a condo had |
| Sacramento is close behind Boston with 43.6% of its | | | | dropped to $495000. This trend may be emerging in |
| homes for sale having their prices reduced in the last | | | | other areas of the country that have had over building |
| ten days. | | | | or over conversion in the condo market. Areas in |
| Of the 18 metropolitan areas included in the study (all | | | | Florida and Las Vegas have experienced an |
| of which had homes reduce their prices in the last ten | | | | oversupply of condos. |
| days on the market), Dallas was at the low end with | | | | One trend that is emerging in San Diego is the |
| 27.4% of homes on the market reducing their prices. In | | | | unwillingness of many sellers to accept the lower |
| San Diego 28.8% of homes on the market have | | | | prices offered for their homes. Expectations are still |
| dropped their prices in the last ten days. | | | | not in line with the market. While homeowners are |
| In southern California San Diego is the leading county | | | | holding out for higher prices, the market continues to |
| to watch for trends in home prices. In the month of | | | | decline and home values fall even further. |
| August prices were down 2.2% from August of 2005. | | | | |