Mixed Report On San Diego’s Real Estate Market
Monday, September 16, 2013
Aired 9/16/13 on KPBS Midday Edition.
Michael Lea, director of SDSU's Corky McMillin Center for Real Estate.
Gary London, a real estate economist with the London Group Realty Advisors.
San Diego's home sales and housing prices took a dip in August, surprising some experts. But as always, there are a number of different ways to look at San Diego's real estate market. The real estate information service Dataquick reported last week that the median home price in San Diego County is up 20 percent from August, 2012, to $415,000.
There are changes ahead, most notably in a reduction in the size of federally-backed home loans that could make this volatile market even more unpredictable.
Michael Lea, director of SDSU's Corky McMillin Center for Real Estate, says the plan by Fannie Mae and Freddie Mac to reduce their loan caps is in line with the goal of reducing government's role in housing finance. In San Diego County, the current loan limit is $626,000. It's unknown how much the cap will lower but Lea says the changes will have a bigger effect here.
A report by Bloomberg found that some mortgage lenders are trying to make it easier for people to get mortgages by lowering some lending requirements - accepting lower credit ratings, and increasing the loan-to-home value ratios. This comes amid rising mortgage rates and layoffs in the mortgage industry.