Back on July 7th I posted “San Diego real estate 2010 2nd. Half Outlook … double-dips” where I predicted the San Diego real estate market was headed for a double dip. With yesterday’s report by MDA DataQuick, showing home sales in southern California fell 16 percent last month from a year ago, to reach their lowest level for that month since 2007. One should keep in mind September 2009 homes sales were also depressed. So, a 16% drop from last year is very telling. I believe my prediction of a San Diego double dip has unfortunately been fulfilled.
However, this same MDA DataQuick report showed median home price in Southern California rose nearly 8 percent last month from September 2009. What is really interesting about this is the fact that the San Diego home prices have been up month over month for most of 2010 and yet sales are falling!
Back on in 2005 I published “A Trend To Go National?” where I predicted the real estate sunami. At that time, I noticed even though month to month San Diego home prices were still rising, home sales number were falling. This is exactly the same situation we are now seeing in the San Diego housing market.
How can San Diego home prices continue to rise while home sales are off double digits?
Even during our seasonally peak home selling marking time from the spring through the summer, San Diego home sales fell once the government rebate ended.
