San Diego Home Prices Better Than Rest Of Nation
Tuesday, February 22, 2011
San Diego was one of two major housing markets that gained value in December when compared to prices a year ago.
Housing values are falling in most of the nation, but they still managed to inch up in San Diego and Washington DC. The Standard and Poor's Case Schiller index measures housing prices in the nation's 20 largest markets. Prices fell in 18 of the areas measured, but San Diego bucked the national trend. Maureen Maitland tracks housing for Standard and Poor's.
"As recently as April and May, it was up over 12 percent from the prior year," said Maureen Maitland, who tracks housing for Standard and Poor's. "So there is some weakening in the San Diego market. Even though its staying strong on a relative basis when compared to some of the other markets."
Maitland said tight credit, rising interest rates and the large number of distressed sales are also putting downward pressure on housing prices. She said San Diego prices were softer at the end of the year, because prices were up 12 percent last spring, but up just 1.5 percent in December.
"Credit is still tight," said Maitland. "People just don't have confidence. And there is a lot of inventory overhang to work off. So there's a lot more supply than demand, which is depressing housing prices."
Maitland said the California housing market may be in better shape than the rest of the country, because geographic limitations kept the housing supply from rapidly out pacing demand.