A San Diego Housing Turnaround or More Gradual Decline
San Diego housing market news
Are the last few months of San Diego’s rising sales and modest monthly improvement in median prices the long awaited housing bottom? Who can really say if it is, with any certainty? Keep in mind, since the San Diego housing market peak in the summer of 2005, any upword blip or new year forecast has been hyped as the return to real estate Nirvana.
San Diego & California unemployment is still increasing, a large number of adjustable rate loans are due to reset in the next several months and California State taxes have just had the largest hike in history.In addition, and a major factor, if there is true improvement in the economy, interest rates have to rise. Rising mortgage rates are always a depression on real estate activity.
It appears as though we may see a continued, yet much more gradual decline in housing prices. The deflation experienced by falling housing prices will be offset by the rise in commodity prices and the costs of all other goods that aren’t big-ticket items, aka inflation. In other words, every other product that doesn’t have a stimulus (cash for _______) associated with it.
This is how the administration is going to keep the promise to not directly raise taxes on the middle class. Instead, there will be a more insidious tax that affects everyone equally—higher inflation and higher cost of goods.
San Diego monthly events
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Given the ratio to income to sales price in California the foreclosure crisis will still be a California problem for many years. Until the recent bubble lending 3 times income was a good yardstick but now it ranges from 6 to 10 times income and this has become the norm.
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Housing is nowhere near bottom. It has at least 20% more to fall to become “reasonably” priced.
This is why I know housing is nowhere near bottom. There’s still people like this who believe housing can only go up – any downturn is just a hiccup. Heck, genius Cramer even called a bottom in 2007!!!
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So, where can I get a cheap house?
Orange County Attorneys
I think that in the long run, everything will probably be okay. The government will save us!
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