For those of you lucky enough to be in a steady real estate sales market you better not get too comfortable. The inventory of homes for sale is continually increasing daily nationwide. The Sub-prime foreclosure and tightening of guidelines for loans approved are not helping to decrease the inventory nor the present or future borrowers in this market. As a result Developers and Realtors are working extra hard to move their inventory to any willing and qualified buyer. The Media is also not helping with continuous reports of high foreclosures and down markets. They should also report on the where it is a healthier market and what types of homes are selling best today. I use a simple gauge to determine what is the current and next 6-12 month forecast of real estate demand in any local area and you can too. Ask any Real Estate Company how many Developers or Contractors have come through your doors in search of property to build on? Then ask the same to a larger and smaller local Developer or Contractor and you shall have your answer. We are just getting into the spring buying season for 07 and it is a buyers market. I say GREAT to that as long as there's any market it's good for the real-estate market.
Siha: We already know that a number of builders have pulled up stakes in San Diego. The problem is not future glut of properties--but a scarcity--at least in certain locales. Demand will eventually overtake supply in these highly-desired areas. Employment numbers are good and the local economy is healthy.
That said, this pricing adjustment was sorely needed!