| Home sales are dropping in Southern
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| | bubble at this point, this is just a
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| California. For the fourth month in a
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| | return to more normal market conditions.
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| row, home sales have continued to drop,
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| | What we have seen in the past several
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| according to data for March. At the same
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| | years is abnormal market conditions. The
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| time, the median price for a home in
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| | rapid growth in the real estate market
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| Southern California, has climbed above
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| | must eventually return to a more normal
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| the $500,000 mark. This is a divergence
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| | pace. When we see the number of home
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| of trends. In the last several years home
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| | sales slow, especially for a multi month
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| sales were robust and increasing and so
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| | period, we can expect prices to lag the
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| were home prices. Now home sales have
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| | slowdown in sales by around three months.
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| slowed but prices are still inching
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| | We should see home appreciation start to
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| upward in many areas.Home values in Los
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| | really slow down soon in southern
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| Angeles, Orange, Riverside, San Diego and
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| | California.Inventory is another factor of
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| Ventura counties, increased 14% over one
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| | price. In this region inventory is
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| year ago. Homeowners should not expect
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| | increasing, but not at extraordinary
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| that rate of appreciation for the current
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| | levels. The time to sell a home is
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| year. In March the number of home sales
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| | increasing. Last spring it was 27 days,
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| fell almost 10%. Sales activity is
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| | now it is 48.The county to watch is San
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| related to price activity. The fact that
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| | Diego. It was the first county to
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| we are seeing a continuing series of
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| | accelerate in home value appreciation and
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| months with declining sales activity is
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| | the first to slow. It is seen as a
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| an indicator that price activity is soon
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| | barometer for southern California. In the
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| to follow. The current rate of home value
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| | last six months median prices of homes in
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| appreciation cannot be sustained in a
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| | San Diego county have decreased 2%. This
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| climate of falling home sales. In
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| | is not indicative of a bursting bubble,
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| Southern California the sales activity
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| | but an overheated market that is
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| and the rate of price increases reached a
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| | returning to normal.Andrew Goldman is
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| peak two years ago. In the current
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| | president of Metal Rabbit media services,
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| environment we are likely to see home
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| | the operator of He has written a number
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| values rising at a much slower pace or
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| | of articles on finance and investment
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| even approaching 0.There are no
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| | over the last ten years.
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| indications that this is a real estate
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