The Change in one of the nation's hottest real estate markets
may be a sign of a Nation wide trend!
Just this summer it was almost impossible to find a new San
Diego real estate development that cooperated with real estate
brokers. If you could find a developer co-opting, it was most
likely way below the traditional 3% rate.
Well, just a few short months have passed and a current read of
the Sunday homes section of the San Diego Union Tribune shows
that though the real estate market does not make discernible
moves in a day like the stock market, a couple of months can
easily define the local real estate trends.
Here are just a few of the incentives noted in the home section
of a very recent Sunday's paper: 4% broker co-op, free plasma
screen TV, $1,000 off closing costs, $2,500 in design center
upgrades, $10,000 in incentives, one year HOA fees paid, $5,000
in closing costs, $2,000 closing cost credit, washer, dryer &
refrigerator included, $25,000 in incentives or cash price
reductions, $1,000 gift certificate, and no HOA fees for 2
years!
The grand opening long buyer lines, multiple offers, offers
above the asking price and homes selling within days of being
listed are just fond memories now. However, due to the huge home
appreciation all San Diego real estate has seen, with the
average home up 100% in the past 5 years, combined with the boom
in 100% adjustable/interest only loans, the stage is set for
what is sure to be mind-numbing depreciation.
Yes, we have started on the down leg of the typical 'Bell Curve'
and the probability of surpassing our approximate 20% drop in
San Diego home values experienced from 1990 thru 1996, seem
assured. Plus, as real estate trends seem to start in the West
and than move east, any U.S. real estate market that experienced
huge price appreciation the past five years, will experience the
same depreciation in real estate residential values. Copyright
2005 Promotions Unlimited - All rights reserved
About the author:
Bob Schwartz, CRS,GRI, is a Certified Residential Specialist San
Diego real estate broker
http://www.Brokerforyou.com with over
27 years experience. Bob's other sites are about San Diego
downtown condominium real estate activity at:
http://www.downtown-san-diego-real-estate.com & A free website
award site at
http://www.web-site-award-winning.com/
