Legacy has been doing some analytical studies regarding the housing market in San Diego and has uncovered some recent and very interesting data. We have seen an increase in competition for properties across all markets which can only be attributed to a decrease in supply. Supply constrained markets, such as the condo market in downtown San Diego, are uncovering the demand that investors have placed upon high quality assets in distressed situations. The San Diego housing market has had a decrease of supply of nearly 5% month over month which could possibly contribute to the vast amount of buyers coming out of the woodwork during the January buying season. The supply constrained markets combined with record low interest rates have created a surge of new, organic demand. This demand is much different from the tax-buyer credit demand which led to the unnatural uptick in housing prices during 2010. The more interesting number is the 17% decline in supply over the past year. I feel that over 2012 housing price appreciation will occur within San Diego, especially in markets where no further development can occur. Some interesting numbers to share with the public as it’s positive news for all investors, the economy, and the country. Likewise, any agents in the marketplace with deals we would love to take them off your hands Happy Friday.