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.”
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