Apartment Building, Sales in San Diego Down in May

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.