What affect has this years real estate crisis had on the residential property management /investing business?
The current real estate crisis has had a significant impact on the real estate investment business, as well as on most of the people of San Diego. After unprecedented increases in real estate values which ended in 2007, we are seeing a significant decrease in property values. Real estate values were driven to artificially high levels as financing on real estate was so easy to obtain at very high leverage. With the current value corrections we are seeing the number of investment real estate transactions at levels below half of recent historical levels. Because San Diegos economy remains stable, we are not seeing major decreases in rents and occupancy at properties, and most investors appear to be waiting out the current crises and not unloading their properties.
