Condo Glut Effecting San Diego Market
DataQuick is reporting that San Diego’s June median price for existing and new homes fell 1% to $488,000 from $493,000 a year earlier. Sales also fell 24.1% over that time. The cooling demand for condos is being blamed as more and more units hit an already glutted market.
The median price for resale condos fell 2.1% to $386,750 in June from $395,000 a year earlier. The month’s median for new homes, which includes new condos and buildings converted to condos, dropped 8% to $422,000 from $458,750 a year earlier.
Some industry experts believe that if the trend continues many developers will begin putting new condo projects on hold. Big drops in overall real estate prices, however, are not expected unless there are signs of significant job losses or a recession at the national level.