San Diego Home Prices -San Diego Home Sales Drop

San Diego home prices and San Diego home sales both slipped in July. This was the conclusion from the latest report released by Dataquick, a real estate tracking company.

San Diego County home sales dropped 0.9 percent in July, compared to a year ago, while prices fell by 3.8 percent.

One should keep in mind that if this latest report is comparing home prices and home sales to a year ago, the San Diego real estate market at that time was also extremely weak. So, to have a drop from the July 2010 levels, is ominous in and of itself.

What’s being overlooked here, is the fact that this drop in both sales and home prices is occurring during this seasonally strongest time for real estate sales!

People have to understand that it’s not going to be the real estate market that recovers and pulls the rest of the the economy up. Actually, it’s going to be the reverse the economy must improve first before the real estate market can put in a true bottom.

I’ve been calling for a double dip in the San Diego real estate market since mid-2010. A review of the most recent Case Shiller data, as well as this current Dataquick report confirm that the San Diego real estate market has double dipped and because of the timing of this double dip, it seems certain that housing prices will drift lower at least through the end of the year.