The Union Tribune reports on San Diegos condo bust. "During San Diego's six-year housing boom, few neighborhoods have been more exuberant than downtown. Construction of sleek condo towers tripled the housing stock. A few buyers, meanwhile, have begun to negotiate good deals. A 15th-floor unit in Discovery on Cortez Hill purchased for $725,000 in 2004 sold a year later for $681,000."

"Downtown 'is probably one of the only places in Southern California where you can buy a house for less than you could a year ago,' said (broker) Jim Abbott. Abbott said, 'we've got a huge amount of inventory in a segment between $550,000 and $900,000 that is very tough to move.'"

"In the fall of 2004, George Hadjis of Carlsbad purchased a 1,027-square-foot condo in Little Italy's Palermo for $504,000 as an investment. Hadjis. Today, he's asking $489,900. The unit lacks a spectacular view. It has been listed for about six months with no offers. If it doesn't sell in the next three months, Hadjis may take it off the market and rent it, likely at a rate that would not cover his mortgage payment."

"Hadjis calls the experience frustrating. 'I ask myself should I have dropped the price another $10,000 six months ago?' he said. 'Do I really drop it right now or do I take the slow bleed (by renting.) That's what I'm struggling with.'"

"Carol Cavanaugh bought a condo in The Grande south tower for $623,000 in late 2004. She thought she would like the convenience of being close to the office, but she doesn't like high-rise living. She put the unit on the market for $570,000 to $599,000. She has received two low-ball offers, both from real estate brokers. But Cavanaugh is going to stick it out until she gets what she wants, even if it is a loss."

"Already, a handful of proposed projects have been put up for sale. Developers of The Elle, an 179-unit condo tower planned in Little Italy, are selling the site and development plans. The asking price is $17.5 million. It is now a parking lot."

And in Orange County. "High-rises for residential living, which were barely whispered about a few years ago, are now the hottest development trend in Orange County. Orange County, on paper at least, is getting 44 such towers, including two already built. That could translate into 5,000 new condos."

"Bosa Development, an outsider from Vancouver, Canada, built and sold two towers in Irvine. Other developers are scrambling to be next, he said. That rush could flood the market with a niche product. 'They all jump in at once and sink the boat,' Walter Hahn, a longtime county real estate economist said."

"Developers with projects under way are skeptical their competitors will follow through. 'I'd be shocked if 50 percent of planned projects actually happen,' said Matt Montgomery, an executive in the Irvine (firm) that is constructing two towers in Irvine and plans a third."