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San Diego Home Prices Rose in August; Values Down 38.7% from Peak
By Don Bauder | Posted October 27, 2009, 7:25 a.m.
San Diego County home values rose 1.6% between July and August, although this was worse than the 2.5% increase from June to July, according to data released this morning (Oct. 27) by Standard & Poor's/Case-Shiller. Prices dropped 8.9% from August of 2008 -- one of the better performances among the 20 metro markets covered by the indices. During some of the worst months, San Diego year-over-year declines were more than 20%. Home values are now down 38.7% from the peak of November, 2005. S&P economist David Blitzer said that the rate of decline continues to improve nationally, and California is showing some marked improvement. Nationally, prices are back to where they were in autumn of 2003. However, he said on CNBC this morning that Southern California might not see a full recovery for five years.
However, he said on CNBC this morning that Southern California might not see a full recovery for five years.
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What does he consider a "full recovery"????
If he thinks "full recovery" is the point the market was at before it folded he's nuts.
We will be in a flat market for another 2 years- at least-maybe longer. W could even see prices collapse AGAIN if the country does not start adding manufacturing jobs and re-building our countries middle class base.
By SurfPuppy619 9:13 p.m., Oct 27, 2009 > Report it
Response to post #1: It's possible that residential real estate will take another pratfall, particularly in Southern California. Another flow of massive liquidity will probably be escalated to try to stave off that possibility. Best, Don Bauder
By dbauder 10:32 p.m., Oct 27, 2009 > Report it
A question I have is whether the price increase reflects an improvement in the real estate market or simply a different mix of house/neighborhood sales. The data may not be readily available, but a better market indicator would be adjusted by neighborhood and housing quality. If the percentage of home sales in coastal north county is higher in the data period and the percentage in south county is lower, the average price would appear to be higher even if the market were still dropping.
There are many newer expensive homes that have adjustable mortgages that the owners may not be able to afford in today's economy.
By johnsd 11 p.m., Oct 27, 2009 > Report it
Response to post #3: That is an excellent question. I don't know the answer to it. I don't know how Case Shiller compiles the data, or whether it adjusts for different neighborhoods. Other real estate statistical services do break down numbers by neighborhood. Best, Don Bauder
By dbauder 9 a.m., Oct 28, 2009 > Report it