By Jack Nooren
Judging by the reports recently published in the local media, San Diego’s real estate market continues to be neck-deep in turmoil. With home values still adjusting to the new market conditions, and a large numbers of homes still in foreclosure, the county is likely to face a shortage of apartments by August 2012.
Approximately 13,000 apartment buildings dot the skyline of San Diego, but currently just less than 130 apartment buildings are up for sale. Due to the shortage of saleable properties, cap rates have been compressed, fetching owners a higher value. It is the other extreme though when it comes to commercial sectors such as retail, office and industrial. Here, cap rates and vacancy rates remain at the highest peak while values continue to decline.