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EconoMeter: Where are home prices headed?

Panelists weigh in on the next 6 months


Saturday, August 21, 2010

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Kelly Cunningham, National University System
Answer: Yes
Although there will be parts of San Diego’s housing market that will see prices and sales increases, the end of the tax rebates, continuing high unemployment and sluggish job growth, and inventory of foreclosed homes still to be released to the market, will cause overall prices and sales in San Diego to slump through the end of the year.
Despite the decrease in home prices over the past three years, affordability remains a significant barrier for home buying, especially with tightened loan requirements including appropriate down payment. The ratio of median home price to median household income locally still shows San Diego is one of the nation’s least affordable housing markets.