“a 10% drop in the price of median homes and a 30% drop in sales, year over year, is a huge and fast drop in a market that is perceived to be so stable.”
If we ever get a 10% y.o.y. drop in median resale prices, that would be huge. That hasn’t happened yet, though. To this point prices are off 5% from 12 months ago. The 30% drop in sales is huge, but that appears to be almost completely the lack of investor buyers in the market.
jg –
Home building has slowed to a crawl, but that’s actually healthy for the market. The more new homes that are built right now, the more downward pressure there will be on prices, since there isn’t a lot of market demand for new houses in SD now.
If builders keep building new condos Downtown, that market will take a long time to recover, though. I don’t know what bank would want to make a construction loan on a new project downtown at this time.
