Market Conditions - June 30, 2006 by Carla L. Davis
San Diego, California, is a city known for its tourist attractions -- think beautiful beaches and Sea World. Residents love the area for its rich history and amazing climate. All of these factors led to a rising population in years past. In 2005, the real estate market was booming. Granted, the market was booming all across the nation, and especially in California. But this year has seen a changing tide. One expert reports, "The San Diego real estate market seems to have been in a stall for the last couple of quarters." Why the slowing market? Certain factors are factors felt nationwide -- including rising interest rates, bubble fears, personal financial troubles, and rising costs of oil. But one expert reports about the San Diego region saying, "Many agents kept trying to push the range on listings, anticipating the next jump. This caused a false sense of home values still rising when in fact they just stayed about the same. This also caused more market time and some forced sales at lower prices." So how much slower is the market this year? Sales are down 28 percent from May 2005. That is a considerable jump. And with a median family income near $40,000 -- its is no wonder that average home prices over $300,000 are hard to swallow at this time. | 
