This is an interesting post from San Diego real estate's top blogger Jim Klinge.
Christopher
San Diego “21% Undervalued”
An excerpt:
San Diego County used to be one of the
nation’s most overpriced real estate markets, as much as 40 percent
above historic norms, according to the IHS Global Insight financial
analysis company.
Yesterday, in a dramatic turnaround, Global Insight said housing prices in San Diego are 21.2 percent undervalued.
“It’s definitely coming back from the boom,” said Global Insight economist Jeannine Cataldi. The median price for a single-family home was $327,300 in the first quarter, the company said. Based on historic trends for household income, affordability and appreciation, the “normal” value should have been $415,300. That contrasts with the peak of the boom market, in the third quarter of 2005, when Global Insight found the median price of $506,500 was above the norm by $144,100, or 40 percent.
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