San Diego Condo Prices – Another Bubble?
San Diego California single-family median resale home prices hit $432,000 in March, a rise of 5 percent from February, and nearly 19 percent from March of 2012.
Condos and townhomes saw an even higher increase in the median price – $285,000, which is a jump of 14 percent from February, and 30 percent from March of last year.
Normally, single-family home prices should increase 2-3% a year tops plus inflation… yet we’re seeing 20-30% increases or more? Home values are halfway back to where they were pre-2007!
The majority in the real estate industry think these huge price increases are sustainable but really are they even justified? Seems like we now may bubble faster than we did before!
One should keep in mind, it’s not if, but when interest rates go up then housing prices may plummet again. This current San Diego housing market is not realistic. People are looking to get back what they lost in equity from the top of the market in the Summer of 2005 in a year or two!
Today’s current San Diego real estate market seems like it is going to bubble again.
Bob
You are so right, no question but we’re looking at another bubble. The dénouement will come much quicker than before.
With appreciation and respect,
Here in Washington state, my wife and I have lost over $165,000 in valuation from a previous valuation of $450,000. It is still the same and will not reach former levels for years to come, it it does at all.
The latest figures from the NYS Division of Banking indicate that roughly 30% of all owner-occupied properties in NYC are now seriously delinquent. For Long Island, it is an incredible 35%.