2011 2nd Quarter Market Breakdown

This quarterly San Diego County Real Estate Breakdown is divided into two segments-condos and single family homes.  Each segment is divided into three pricing groups to illustrate the differences in supply and demand and various pricepoints throughout the County.  Here's the raw data:

Number of Condos Sold between START DATE - END DATE (remember 6 months)
<$200,000: 2,473        Monthly Average: 412
$200,000 - $400,000: 2,031    Monthly Average: 338
>$400,000: 703           Monthly Average: 117

Number of Active Condo Listings
<$200,000: 1,082        Months of Inventory: 2.62
$200,000 - $400,000: 1,327    Months of Inventory: 3.92
>$400,000: 1,093        Months of Inventory: 9.32

Number of SF Homes Sold between START DATE - END DATE (remember 6 months)
<$500,000: 7,249        Monthly Average: 1,208
$500,000 - $800,000: 1,935    Monthly Average: 322
>$800,000: 1,135        Monthly Average: 189 

Number of Active SF Home Listings
<$500,000: 4,282        Months of Inventory: 3.54
$500,000 - $800,000: 1,923    Months of Inventory: 5.96
>$800,000: 6,089        Months of Inventory: 32

A Buyer's Market is characterized as an overabundance of supply in relation to demand.  In my opinion, a Buyer's Market occurs when there is at least 8 months of active inventory listed on the MLS.

A Seller's Market is characterized by high levels of demand in relation to supply.  In my opinion, a Seller's Market occurs when there is at most 4 months of active inventory listed on the MLS.

Stability is characterized by a steady balance of supply and demand.  In my opinion, stability occurs when there is between 4 months and 8 months of active inventory listed on the MLS.

Data Analysis . . . Drum roll please:

Condos <$200,000: Seller's Market
Condos $200,000 - $400,000: Seller's Market
Condos >$400,000: Buyer's Market
SF Homes <$500,000: Seller's Market
SF Homes $500,000 - $800,000: Stable Market
SF Homes >$800,000: Extreme Buyer's Market

Notes About the Findings:

The data demonstrates what we've been seeing for about two years now.  San Diego Real Estate has split into three market segments.  Entry level housing is in high demand, and in most instances prices are stable or slowing rising.  This segment will be the first to rebound from the housing slump.  Second homes have a bit of a drop off, but there is still plenty of demand to create stability.  Prices in this segment of the market are either stable or slightly decreasing in most areas.  Expect this segment of the market to stabilize over the next year or two, and rebound a year later.  High end homes are suffering from a very little demand.  Prices are continuing to fall in most areas, and they probably will continue this trend for at least another year or two, followed by a year or two of stability.