• Scam Diego alerts

San Diego's home values jumped 12.4% from May of last year to this May, according to Case-Shiller data released this morning (July 27) by Standard & Poor's. The only market which did better on a year-over-year basis was San Francisco, up 18.3%. Minneapolis was up 11.6% and Los Angeles 9.7%. Values in 7 of the top 20 metro areas continued to fall; Las Vegas was down 6.5%. The overall index for the top 20 markets rose 4.6%. San Diego's home prices are now down 34.8% from the November, 2005 peak. S&P economist David Blitzer cautioned that the homebuyers' tax credit still positively affected the numbers; it had some effect on purchases that closed through June 30. "We need to watch where the housing markets will go after these temporary stimuli go away," said Blitzer. "Since reaching its recent trough in April 2009, the housing market has really only stabilized at this lower level...the housing market might bounce along the bottom for the foreseeable future."

  • Scam Diego alerts

Comments

Burwell July 27, 2010 @ 7:17 p.m.

The federal homebuyers credit is $8,000. If the average homebuyer in San Diego County who received the credit put 10% down, the $8,000 credit would enable the homebuyer to pay $80,000 more for a house than they could otherwise afford ($8,000/.10= $80,000). In other words, the credit artifically inflated the value of the average house sold in San Diego County during 2009-2010 by at least $80,000. The state homebuyers credit inflated the value of the average house sold in San Diego County by as much as $40,000 during the same time period. So we can expect that when the government runs out of money to fund the homebuyers credit, that the average value of a home in San Diego will decline by at least $140,000.

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Don Bauder July 28, 2010 @ 7:45 a.m.

Response to post #1: S&P interpreted these seemingly upbeat numbers very cautiously, because they included a period goosed by the federal program. Best, Don Bauder

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