I t started with a sputter and still hasn't built to a roar, but the long awaited recovery of San Diego County's residential real estate market is upon us. After more than five years of endless groveling, the players, be they real estate agents, lenders, developers, contractors or industry service providers, are finally enjoying a level of prosperity previously unknown in this decade. Indicators give us some clues. Availability of developable land. Construction defect litigation.
Capital gains tax reduction.
Yet along with this recovery comes an incredible amalgam of events that may very well conspire to create an era of housing shortages and price increases not experienced for many years. For existing homeowners looking to recoup the eroded value of their homes, this is most likely welcome news. For those wishing to purchase their first home, or to move up to their next, the journey may be longer and the goal more difficult to achieve. Since 1988, when the San Diego building industry built and sold 15,647 homes, the per-year numbers have decreased. The county has averaged just 6,100 new homes built each year between 1990 and 1996.