Look at San Diego, CA to See What's Next

If you want to know where we're headed, take a look at San Diego, CA. Why...because the last two market cycles have begun in San Diego. The first in the mid-1990s and the current cycle in 2005.

Last October an article appeared in The Wall Street Journal which talked about the number of sales almost doubling while the median sales price was decreasing comparing 2008 vs. 2007. The article didn't say whether this was just comparing the months of October or whether it was cumulative (Jan thru Oct).

Our median sales prices have definitely decreased over the past two years. Now the number of weekly purchase contracts county-wide has increased almost 25% each of the past two weeks (compared with mid-January through the last week of March).

This chart shows the number of active listings and number of sold homes over the past 15 months.