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San Diego Home Prices Rise Again

— San Diego home values jumped in San Diego and almost all of the nation's top 20 markets. The Standard and Poor's Case Schiller home price index rose 2 percent when the nation's 20 largest markets are put together.

Aired 10/30/12 on KPBS News.

A survey of the nation's top housing markets showed another gain in home values in August.

That largely reflected the trend in San Diego. Local prices rose 1.9 percent during the same time period. The survey also showed home value gains in San Diego for every month since January.

Some say the housing market is on the cusp of a recovery.

"What our anticipation here is, we're gonna pick up paces from here," said Marney Cox, the San Diego Association of Governments chief economist. "We'll no longer see the 1.3 percent rates of growth, or 2 percent, from this last quarter. But instead we'll begin to rise above that and hit the 2.5 and 3 percent rates of growth."

There are some concerns about the fragile bounce upward, said Cox, who worries about major events overtaking the improvement.

The federal government could impose huge spending cuts and tax hikes at the end of the year as lawmakers try to avoid what some are calling the "Fiscal Cliff." Cox said Europe's economic troubles could also wash out a weak recovery here.

Comments

Avatar image for user 'wesbaker00'

wesbaker00 | June 3, 2013 at 12:42 p.m. ― 10 months, 2 weeks ago

Housing is becoming unaffordable again in California. The spending cuts by the government will cause people to focus on the real issues. As a state that is addicted to spending and tax increases, I am all for Washington cutting our deficit!

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Avatar image for user 'Peking_Duck_SD'

Peking_Duck_SD | June 3, 2013 at 2:48 p.m. ― 10 months, 2 weeks ago

The key here is interest rates.

They are already going up, and the "recovery" is in its infancy.

No better way to derail the recovery than by the government raising interest rates.

It's very frustrating that during the housing crisis, the only people able to take advantage of low interest rates were wealthy cash investors because the banks weren't lending to anyone else.

Now that banks are starting to lend again, how about letting Americans who aren't super-rich take advantage of the low rates??

I realize they can't stay where they are at forever and do eventually need to come up, but at least wait until te recovery is established and strong before raising them!!

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Avatar image for user 'JeanMarc'

JeanMarc | June 3, 2013 at 3:20 p.m. ― 10 months, 2 weeks ago

Interest rates will rise, housing prices will fall.

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Avatar image for user 'Ashley Rodriguez'

Ashley Rodriguez, KPBS Staff | June 3, 2013 at 3:53 p.m. ― 10 months, 2 weeks ago

Any updates on this? Housing prices are up, interest rates are still pretty low by comparison... what does that mean for the economy here in San Diego? Is this a good sign or a bubble in the making?

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Avatar image for user 'CaliforniaDefender'

CaliforniaDefender | June 3, 2013 at 4:10 p.m. ― 10 months, 2 weeks ago

As Duck said, the only ones able to get into the market are all-cash buyers, usually out-of-state/foreign investment corporations.

They offer to by groups of homes (usually 20 or more at a time) for a few percentage points under market value. Less work for the real estate firm and a quick close for the seller.

They then turn them into rentals until the market goes up to a preset value and they are unloaded for a big profit.

Middle-class buyers lose, yet again.

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Avatar image for user 'Peking_Duck_SD'

Peking_Duck_SD | June 3, 2013 at 6:09 p.m. ― 10 months, 2 weeks ago

Ashley, yes rates are still low, but for how long?

They did go up a little, and the "pundits" I hear on tv say they will keep rising now.

Not sure why jean thinks prices will go down.

I think both prices and interest rates will go up, my hope is that rates go up very gradually though otherwise it will hinder the recovery.

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Avatar image for user 'benz72'

benz72 | June 4, 2013 at 5:29 a.m. ― 10 months, 2 weeks ago

Price is more strongly influenced by meager supply than changes in very low interest rates at this point.

PDSD, We didn't buy all cash, but we did have good credit.

CD, There are certainly middle class buyers who purchase homes. And real estate is a decent investment (almost always), whether buying a home singly or in groups of rental properties that flip later.

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Avatar image for user 'JeanMarc'

JeanMarc | June 4, 2013 at 9:03 a.m. ― 10 months, 2 weeks ago

To answer Ashley, several people involved in realestate believe we are in a bubble created by artificially low interest rates, though the person selling you a house would never admit this.

There are other fundamental statistics that in the past have meant a housing price adjustment was on the way... mainly the medium income to median home price ratio. Right now the median home price in San Diego, compared to the median income, is unbelievably high. I understand that we're paying for the weather, but non-rich people who work here also need to live here.

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Avatar image for user 'JeanMarc'

JeanMarc | June 4, 2013 at 9:08 a.m. ― 10 months, 2 weeks ago

Oops, I did mean "median" instead of "medium" in my above post. I am dumb, but not that dumb.

While we're talking about housing and interest, has anyone here noticed the commercials for loan companies offering 2.97% 3 year ARM refinancing? Unbelievable.

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