San Diego County's new-housing market is beginning to look like the TV game show “Let's Make a Deal,” or the incentive-driven new-car market, as builders throw in offers that include spiffy appliance packages, pet services and even a set of new wheels. Delores Conway, director of the University of Southern California Lusk Center's Casden Real Estate Economics Forecast project, said she has been monitoring the incentive and discount trends by builders, especially in San Diego. “San Diego is a leading indicator,” she said. “It was the first to have price increases, and it's the first to see a softening. . . . That's why we're all watching you. You're the leader.” So far, Conway said, builders have limited concessions to 5 percent or 10 percent of the sales price. “The last thing they do is lower the price,” she added. But this is all part of a normal real-estate cycle that Conway said is likely to continue for the next 18 to 24 months or even longer. “There's a softening in the market – the housing market is slowing down,” she said. “We've gone from a white-hot price appreciation to more normal levels.” Asked about industry mood, she said builders are exhibiting a certain degree of uncertainty, but “no massive running to the exits.” “I don't see signs of panic,” she said.
July 30, 2006