• News Ticker alerts

San Diego home values rose 0.4% in December from November, topping the 0.2% rise of the top 20 markets, according to Standard & Poor's/Case-Shiller numbers posted this morning (Feb. 26). Over the last year, local home values have risen 9.2%, also topping the 6.8% of the top 20 markets. Local home values are now down 34% from their late 2005 peak.

  • News Ticker alerts

Comments

Visduh Feb. 26, 2013 @ 8:27 a.m.

One would wonder what keeps the prices of housing units so high here. The job market isn't all that wonderful, and many local employers pay heavily with "sunshine dollars." We now hear that "investors" are snapping up many of the homes as they come on the market, making their quick cash offers attractive to sellers. I wouldn't call most of them investors, but rather speculators of the flipper variety. They are planning to turn the houses and condos fairly soon, and at a nice profit. But when that speculator money stops coming, what will keep the prices up and still growing? This has all the appearances of a small bubble locally. And aren't home prices elsewhere trending down?

0

Don Bauder Feb. 26, 2013 @ 12:13 p.m.

Visduh: Several things are going on. The buyers are heavily speculators, buying with cash. But why are they buying in San Diego, where the prices are fourth highest in the nation? Good question. The Fed and other world central banks are printing money frenetically; Bernanke said today it will continue. Bottom line is that stocks will continue moving up and so will housing prices. Stocks have no real competition. Cash is dead money and bonds are only good if you foresee deflation, and even in that case, you pay a big premium to get good bonds and get skimpy yields. In short, this is centralized, world-coordinated financial engineering -- central banks printing money, and it has to go somewhere. Best, Don Bauder

0

Sign in to comment