Bob Casagrand at Realty Times has a July report on San Diego. "Homes sales continue to decline, sales for July were 2,396 versus 3,779 for last July. This is a drop of 37% from last year and a 19% decline from this June. July Pending sales were a dismal 2,310, which is a predictor for a continuing decline in home sales."

"The inventory at the end of July was 22,919; this is almost a 10 month supply of homes and an increase of almost 1,000 homes in the month. Approximately 65% of this year listings have gone off market by expiring, cancelling or being withdrawn, approximately 90% of those re-list and are kept on the market."

"In seller market years the expired, cancelled and withdrawn listings represented about 8.5% of the listings. I think this gives us some idea on how long it is taking to sell homes."

"The pricing picture is a little more complicated. Sellers were asking for more and not getting the increase. The Active inventory has an average asking price of $747,845 while the homes that sold were at $667,336 and the Pending sales had an average asking price of $639,199. Part of this difference is the Actives are a little large."

"I believe that another explanation is two tier pricing. Condo prices have taken the biggest hit so far. The average price in July was $399,000 down about 8% from last year. While the sfd prices remained flat. If I take the sfd sold between 1700 and 1800 square feet the average price this July is $551,000, down 6.6% from last year and if I take the homes between 2000 and 2100 square feet the average price of $646,000 is up 0.6% from last year."

"The same thing is happening by neighborhood as well. It is very important for buyers and sellers to know what is happening in their respective neighborhoods and with their house styles to make sound decisions."