Sometimes you crack me up. In one breath you acknowledge that SD has been the canary market and entered into an oversupply of listings before most other markets in California, and then in the next breath you wonder why – over the last 12 months – it hasn’t increased as much as all the other markets that are just now catching up.
Try this on for size, SD is not getting better; the other markets are just getting worse and are only now joining SD in the decline.
While you’re at it you can consider this – the volume of sales activity in SD is dropping like a rock. At present it looks like August 2007 will end up showing 20% fewer sales than Agust 2006, and 2006 was the worst year for sales we’ve had since 1997.
Even though the number of listings isn’t rising, the ratio of listings to sales continues to get markedly worse. Searching for signs of the bottom by noting a levelling off of the number of listings at the end of the summer is basically a waste of time. If you’re only going to look at a narrow slice of the picture you’d be better served looking at the number of sales that are closing. When we start exceeding an average of 2,600 sales a month here you’ll know that things might be getting close to turning around.
