Article excerpt:

Cox says originally real estate watchers believed the lagging housing market might bottom out this summer when home buying season is in full bloom. But the fact that existing home sales are falling means that the softness is likely to continue into 2008. He says there are two scenarios of how the market might play out.

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Related article: San Diego Real Estate Bubble 

An excerpt of the article:

Metrostudy, a real-estate information firm based in Riverside, reported 5,414 new home sales in Riverside and San Bernardino Counties in the first quarter of this year, a 50 percent decline from the same period a year ago. – Source

Will San Diego real estate react in a similar way? That has yet to be determined. San Diego does have the “coastal” factor going for it, so real estate trends are often different than those from inland cities. But you’ll hear about it here first!

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Begin Press Release
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SAN DIEGO–(BUSINESS WIRE)–Urban Real Estate Services (URES), a commercial and residential real estate company specializing in downtown and urban infill real estate sales & marketing consulting has created a new division to cater to the smaller urban developer in San Diego’s many emerging redevelopment and urban infill areas. URES defines a “small project” as one that is either new construction or condo conversion between 20 units and up to 100 in size. According to Eric Jones, Partner of URES, “We have hired two of downtown’s leading real estate sales & marketing executives to help build our new “Small Projects” division.” Mr. J.P. Stocco and Mr. Chris Warren, formerly of the downtown division of Prudential California Realty, will head up the team at URES.

“Stocco and Warren bring great experience and knowledge in the urban market that will help us position our company’s experience and resources to offer the smaller residential infill urban builder with consulting services from project acquisitions & entitlements to sales & marketing of the end product,” stated Jones. “We are optimistic and confident entering this area of the urban market especially with the leadership skills Stocco and Warren will provide.” URES is currently the sales & marketing consultant and broker for several projects in downtown San Diego, including the luxury residences at Sapphire Tower (www.sapphiretower.net) and the award-winning Smart Corner Condominium Residences (www.smartcorner.net). For more information, please contact Eric Jones, Partner of Urban Real Estate Services at eric@urbanrealestate.info, by phone at 619-325-0405 or online at www.urbanrealestate.info.
Contact:

Binger Communications, Inc.Beth Binger
Cell: 619-987-6658
beth.binger@BCIpr.com

The article goes on to quote Colleen Badagliacco, president of the California Association of Realtors, who said:

March sales fell below the levels of recent months in reaction to an uptick in mortgage rates earlier this year along with tighter underwriting standards. The year-to-year decline in March was larger than in recent months in part because [California home] sales in March 2006 were the strongest in all of last year.

Why so many home foreclosures in San Diego? Exotic loans are to blame in this article:

“The surge in foreclosures is being blamed on exotic loans that were introduced in the real estate market in 2001. The loans created a false market, and thus many people now can’t afford their homes.”

Source article

Says the head of the San Diego Association of Realtors:

Luxury home sales have not been affected by the slowdown as much as other sub-markets, including affordable housing and median priced housing, said David Cabot, president of the San Diego Association of Realtors.

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