This is a pretty bleak outlook for San Diego apartment prices.

” Pricing for San Diego apartment properties became distorted as condominium converters paid unprecedented amounts in anticipation of profits from the sale of converted units,” said George Carlson, vice president and apartment specialist with Burnham Real Estate. ” The drop in sales for seven consecutive quarters shows a correction as investors continue to price the units as conventional apartments.”

Carlson advised patience. ” Historically, market corrections are followed by significant decreases in selling prices, but not immediately,” he said. ” It’s too soon for quarterly averages to reflect a major drop in pricing, but we can expect to see this in the near future.”