San Diego Housing Market News and Analysis
On Supply and Demand in San Diego
Submitted by Rich Toscano on December 22, 2005 - 5:58pm
Well now they've gone and done it. The Voice of San Diego has printed the words many thought would never be spoken in this town again:
The article concerns San Diego's colliding trends of fewer home sales and greater home inventory. This is nothing new to readers of Premium Content, where I cover local housing stats in depth, but the long and short of it is that supply is increasing, demand is decreasing, and some folks are starting to do the math on what that means for prices.
As ever, cautious optimism reigns supreme amongst local real estate professionals. Says one:
The idea that longer-term homeowners have a bit of equity cushion is certainly valid in some cases. In many cases, though, homeowners have pulled that equity out and plowed it into more real estate (or at least a nice new Beemer and kitchen remodel). It's this latter group that we're worried about.
The article then shocks us with a surprise ending:
I'm not sure what analysts they could be talking about. Doesn't the Guild of Real Estate Analysts have some sort of bylaw forbidding the use of the phrase "lower property prices?" In any case, it's refreshing to hear one of my analytical brethren acknowledging the realities of supply and demand.
Incidentally, the Voice has started running a lot of real estate stories, so interested parties may wish to keep tabs on the Voice website.
~Active forum topics~