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Home values in San Diego County dropped 0.6% in August from July, according to Case-Shiller data coming out this morning (Oct. 26) from Standard & Poor's. July values had risen 0.7% from June. Fifteen of the 20 major metropolitan areas experienced declines in August. San Diego values remained up 6.9% from August of the previous year, but that was down from the 9.3% year-over-year increase in July. Yearly gains in San Francisco and Los Angeles also declined significantly. David Blitzer of S&P said this morning's reading is "a disappointing report. Home prices broadly declined in August...the housing market continues to bounce along the recent lows...It does not seem that any of the markets are hanging on to the temporary momentum caused by the homebuyers' tax credits." San Diego values are down 34.5% from their November 2005 peak.

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Comments

SurfPuppy619 Oct. 26, 2010 @ 9:17 a.m.

No jobs= no economic activity, no home sales

Jobs make the economic cycle go round, w/o them there is nothing

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a2zresource Oct. 26, 2010 @ 9:58 a.m.

RE "Home values in San Diego County dropped 0.6% in August from July.... San Diego values are down 34.5% from their November 2005 peak" and "Jobs make the economic cycle go round, w/o them there is nothing":

More negative bond rating factors for the City of San Diego's AA- general obligation rating.

It is not unreasonable to see the cost of San Diego debt servicing creep up with higher interest rates on potentially lower-rated bonds.

Hopefully that October 11 Fitch Ratings training for San Diego city council members didn't go in one ear and out another.

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Don Bauder Oct. 26, 2010 @ 10:52 a.m.

Response to post #1: Yes, no jobs = no economic activity. But no jobs also equals more quantitative easing by the Fed (driving long rates down), and the continuing of keeping short rates near zero. The big banks would much rather have this easy money than have unemployment drop. Sorry to be so cynical. Best, Don Bauder

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Don Bauder Oct. 26, 2010 @ 10:55 a.m.

Response to post #2: Yes, San Diego's bond rating will drift down to realistic levels. The grand jury says the City should declare bankruptcy. Maybe Fitch will learn about that. Best, Don Bauder

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SurfPuppy619 Oct. 26, 2010 @ 12:28 p.m.

Housing prices are going to keep dropping, we are at least 2 years from a "bottom".

Exhibit #1;

Number entering foreclosure in state leaps

. http://www.latimes.com/business/realestate/la-fi-foreclosures-20101027,0,4934886.story .

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Don Bauder Oct. 26, 2010 @ 3:05 p.m.

Response to post #5: And it may be more than two years before prices hit bottom. That goes for both residential and commercial real estate. Best, Don Bauder

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