March 26, 2006

San Diego: $100,000 off sales, 32% cancel rate, 7 month supply, median price down $71,000, not "horrible territory" yet. Yet.


If this isn't "Horrible Territory" I wonder what is? 'Cause that's reallllly gonna be bad..

In San Diego County, the median price for newly built homes in February was $468,500, reported DataQuick Information Systems. In December, the median for newly built homes in the county set a record of $539,500.

As for potential buyer traffic visiting local housing tracts, the numbers were down 23.5 percent to 15,487, according to Hanley's report for the week ended Feb. 26. There were 99 sales cancellations that week out of 306 transactions, a 32.4 percent rate. The normal rate is about 20 percent.

“I don't see it being in horrible territory,” she said. “It's something I'm watching. Any builder should.”

To combat the market's apparent lethargy, owners have cut prices and builders have begun offering extra upgrades and financing incentives.

Centex Homes reduced prices late last year by 20 percent – $100,000 off the $500,000 models – at its 65-unit Element project in downtown San Diego at 15th and Market streets.

15 comments:

ecobuilder said...

San Diego - very nice city yet. First come out real estate and mortgadge industries. Then techs and hotels. Criminal situations deteorates and more and more unprotected patches will appear in San Diego. All empty homes and condos will be taken (for free) by illegal immigrants.

ocrenter said...

Here's two live examples of very nasty drop in prices in beautiful Carlsbad, CA.

Anonymous said...

HAHA Those poor suckers who bought last December are down $71K in equity already in 3 short months. Sometimes it pays to know what the f*ck is going on. Any of us would have known to rent for another 2-3 years.

Anonymous said...

“I don't see it being in horrible territory,” she said. “It's something I'm watching. Any builder should.”

Remember Monty Python's Holy Grail

"It's just a mere flesh wound"

Anonymous said...

This from an area appraiser who is also preisdent of the area real estate asscoiation:

{He predicted that prices will rise roughly in line with the cost of living, up between 3 and 6 percent annually, but still considers homes here a “very good asset.”

“I'm so bullish on San Diego, still, though a lot say there is a real high risk right now,” he said. }


Is there a conflict of interest when an appraiser is bullish on real estate prices? Can you trust him?

onlygoesup said...

I live here in Carlsbad, and I will tell you, things are not good in the condo market as well. Re-visited 2 condo complexes and was not schocked to see that in the past 2 months NONE have sold. Also, not surprising, one of the complexes has lowered prices by $50,000 and will still consider offers!!! OUCH!!! The other complex didnt have a printed price sheet anymore, they want offers instead.

keith said...

I put my name on a tempe condo project going up 3 years ago, about 200 units. I called them a year and change ago, and they said they were sold out, that they had over 2000 on the waiting list.

guess who called yesterday asking me about coming in to see a unit, maybe make a great investment.

you got it.

pop.

Anonymous said...

Did you go? :-)

dotherobot said...

serves them right. I remember a while back looking at a condo for sale...I asked the realtor was the price was and he said he didn't know yet! I said, how can you not know the price and how can you expect anyone to consider buying if you don't know the price...

Seems like anyone buying now much be crazy. Preserve cash!

Awaiting Bubble Rubble said...

San Diego now = LA/OC next December.

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