California Home Price Outlook
In the April 2010 issue of Money magazine, they produced a table projecting where home prices may be at the end of the year. We took the home values from six California cities in this data table and produced the graph below. The good news for San Diego homeowners is that they projected San Diego’s median home price to just decline -0.3%.
California Home Price Outlook
Orange County California real estate attorneys
California Homes Now Undervalued?
San Diego real estate
In the U.S. housing valuation analysis from IHS Global Insight, nationally, house prices have fallen 10.4% below their 2007 peak. The nation’s housing market, as a whole, is now slightly undervalued, a sharp contrast to 2005 when 52 metropolitan areas were seen to be extremely overvalued.
Home prices declined by more than 10% in five metro areas and by more than 5% in 26 in the first quarter, compared with 104 declining by more than 10% and 16 by more than 5% in the previous quarter.
The most dramatic changes in valuation have occurred in metro areas in California and Florida where many have gone from extremely overvalued to undervalued in a span of two years. Magnifying the downward pressure on prices in these areas are the huge number of foreclosures and other short sales, as well as the large inventory overhand of unsold homes.
James Diffley, group managing director of IHS Global Insight’s Regional Services Group, said: ”While it’s too early to see a bottom of this housing downturn, this quarter’s deceleration in the rate of decline may signal that the market is beginning to stabilize.”