One of the three most expensive markets in the U.S., San Diego isn't even in the top 10 as far as the rate of appreciation this past quarter, according to the National Association of Realtors. That means prices may be cooling slightly, but not necessarily for long, say local Realtors.

"We've reached what appeared to be the peak multiple times, but the market in San Diego, California, still appears to be brisk, and there are still a large number of people shopping," says Realtor Dave Harlan . "A majority of homes in the North County that were once $300,000 a few years ago, now sell close to $500,000 (about a 15 percent annual increase). However, there are definitely less offers than before - no longer 20 offers per property. We see many more 100 percent financing offers than ever. Residential properties above $1,000,000 are more negotiable than those under $600,000. As to be expected, there are several pockets where homes are hard to find while in other areas it seems to be more difficult to find buyers. A strong marketing plan from an experienced Realtor can overcome many of these challenges."

Harlan suggests, "Appraisers believe that the real estate market is due for a correction. The uncertain question is when and how much? But any correction will be tempered by the following facts about San Diego: a climate that is near perfect year-round; a terrain that varies from sunny beaches, lush foliate, rugged mountains, breathtaking high deserts; and a long-standing defense and military-based economy, and world-class high tech and bio medical industries."

"Downtown San Diego includes the Marina District, Gaslamp, Ball Park, East Village, Little Italy and Cortez Hill. It's vibrant, exciting, and undergoing major positive changes. Walk to Seaport Village, watch a Padres' baseball game at Petco Park, celebrate at the Historic Gaslamp, have dinner or coffee in Little Italy, shop at the first rate stores at Horton Plaza, or go to the theatre, opera, the symphony and more," says Realtor Xavier McDonnell , "Right now, downtown San Diego is a most exciting place to live."

McDonnell explains, "This area is undergoing unprecedented change. There are thousands of new condominiums in the works. For new construction, prices are up considerably from last year. But prices for resales of previously owned condominiums are for the most part level or down a bit from last year. There are more condos on the market than last year at this time. With interest rates still excellent but expected to rise, it's a perfect time to buy or sell. There are currently 63 active condo listings that identify their location as downtown, 83 in the Marina District, 91 in Little Italy, 40 in the East Village and 9 in the Ballpark. Current average time on market for active listings is 76 days for downtown, 71 days for the Marina District, 69 days for Little Italy, 42 days for East Village and 30 days for the Ballpark area. To get active listings into escrow, it took an average of 65 days in Downtown, 122 in the Marina District, 66 days in Little Italy, 88 days in the East Village, and 106 days in the Ballpark area. These numbers are mere starting points for any analysis, because various factors can distort the averages."

"The South Bay is a great place to live and is growing every day with new construction," offers Zip Realty . "However, it is not enough to keep up with demand. With the great amount of influx of people wanting to move there, South Bay is experiencing a shortage of homes, as well as the rest of San Diego County. Condo conversions are pushing people out of their rentals and into purchasing a home. Multiple offers are prominent, especially in the first-time homebuyer market. This in turn pushes prices up."

Zip Realty advises, "If you are a buyer thinking of purchasing, don't wait. There is no bubble, it doesn't exist, so it cannot burst. There is no time like the present. Get in now and pick up that equity for your future. You don't have money to put down or pay for closing cost, don't worry. With $0 down financing and the seller paying your closing costs, it is extremely easy to purchase a home. If you're a seller, you have picked up a great deal of equity. Is it time for you to also make a move? There is a buyer out there that would love your home, and is willing to pay a high market value for it."