Biggest San Diego Home Sales Plunge!
San Diego home sales took the largest drop ever recorded in January 2006! Sales were off 31% from December 2005! This was the lowest monthly sales since January 1998, when these records were first tracked!
From January 2005 the loss was 26.8%, and marked the seventh month in a row where home sales were lower than the year before.
Also, the sales price to list price ratio for single-family homes has also continued to fall.
For well over 18 months now I’ve been predicting a deflation cycle in San Diego. Now as the hard facts are actually showing up the ‘industry’ has changed stragerty from pooh-poohing the coming fall to now predicting a ‘short term softening’ of our market.
Believe what you will, but after a ten year spectular ride up, with the last five years actually doubling most home values, do you really believe the down side will be over in a few months? Our last down cycle in San Diego ran from approximately 1990 to 1995.
My prediction for San Diego real estate is that the downward cycle has only begun. Be sure to fasten your seatbelt.
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