Homes sales in San Diego county fell to a ten year low last month, but home prices were steady.
John Karevoll, at the real estate tracking firm Data-Quick, says part of the drop in sales was a cyclic decline in entry-level buyers.
Another reason sales slipped last month was that people apparently “borrowed from future”. They bought homes two or three years ago, meaning less demand now.
Karevoll : If that weren't the case back in 2004, 2005, then we would have much more downward pressure on prices right now. Then the low sales counts would start leading to people lowering their asking prices much more than they have. That just hasn't happened yet.
Data-Quick reports that San Diego home prices have been flat for the past six months -- about five per cent below their peak.
