In the wake of significant drops in both sales and new construction of apartments during May in San Diego County, the region may be moving from a sellers' to a buyers' market, according to George Carlson of John Burnham & Co.
The firm's May figures show apartment transfers down 37% from 147 projects (2,448 units) in May, 1985, to 92 (1,347) this May. New building permit valuations dropped 4% from $46,448,985 (1,499 units) in May, 1985, to $44,690,606 (922 units) this May.
The decline represents the third monthly drop in a row after a four-year rise, Carlson said. The recent rise in vacancy rates may be a contributing factor to the decline of new apartments. There were 1,020 condominium starts in May, up 167% from the 382 recorded in May, 1985, he added.