The San Diego Union Tribune published an article today announcing the the decline in real estate prices was slowing. It also indicated that the area ranked as the 8th worst in the U.S. Being down 42.3% from the high in 2005 and back to the level they were in July of 2002 and 45% above what they were in 2000.
The article then went on to site the newly released S&P case/Schiller Index statistics. However, that is a 20 city index that paints a real estate picture with a very broad brush.
Does this look like a turnaround trend line to you??
As you can see in my previous post of May 19, there are trends in the hardest hit areas that are the main cause of the slowing declines. The San Diego market is showing many signs of buying opportunities on the lower-end property pricing. Multiple bids and overbids are occurring in that range while the middle and upper level prices the markets show much less activity.
KQED FM Radio California Report broadcast yesterday that there are military assets, personnel and support services being transferred to the San Diego over the next two years. The estimate is that 10,000 military and support personnel will be relocating to the area during that period. This will also add to the recovery of real estate in the area.
Although completely contrary to the S&P analysis and conclusions, this is a more accurate of the market in the San Diego area. A “perfect storm” of low prices, high inventory, first time home buyer (anyone who has not owned a home in the last 3 years), low interest rates and other incentives is creating a fertile environment for anyone who is ready to buy without being dependent upon selling an existing property.
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