Condo Conversion Catastrophe?
I personally am not sure what amount of price declines we are going to see in the real estate market. Long term rates are still in the low 6% rate which keeps things relatively affordable. One area I have not understood for a long time, from a buyers perspective, is condo conversions. They generally are not nearly as nice as regular condos and don’t afford a significant discount to regular condos.
Today the local paper reports on a major slow down of condo conversion sales in San Diego. How this relates to single family homes and more conventional condos only time will tell. Those of us with money tied up in San Diego real estate will have to wait to see the full impact.