Why are Denver, Las Vegas, Detroit, Miami, Orlando and Sacramento going down but San Diego is...

[Elspeth]

poised for a rise in housing prices?

http://promo.realestate.yahoo.com/americas-riskiest-real-estate-markets.html

" This month the National Association of Realtors reported that sales volume of existing homes was up 2.9%, the first such month-to-month rise since July.

In cities like San Diego, one of five major metros where transactions rose, that's good news, assuming it's sustained. What makes transaction volume a good indicator is that it shows how easy it is for people to get loans and how much confidence there is in the market. If mortgages are available and buyers have some faith in the value of the home, they're more likely to buy.

San Diego's present conditions suggest that over the next half-year, prices may start to rise. That's because "there's usually a three- to six-month lag between when transactions go up and prices go up," says Jonathan Miller, president of Miller Samuel, a Manhattan real estate appraisal firm.

Another good sign for the coming year? Increased credit availability.

We took into account increased Fannie Mae and Freddie Mac (GSE) loan limits. The new legislation will open up credit in markets such as Sacramento and San Diego by boosting the GSE loan limit by 125% of the median price. That's a huge deal for San Diego, where 18% of the market will see improved lending conditions, based on projections by Radar Logic, a New York-based real estate research firm."

[spanone]

1. certain places are more desirable to live?

[rwheeler31]

2. Check the employers.

[corporatemedia]

3. Best climate in the lower 48 states. n/t

[Elspeth]

4. But Florida is nice and sunny too.

I guess it's not computing for me.

[Tektonik]

6. Florida is humid

San Diego is much drier than any of the Gulf coast and Eastern seabord cities.

[YvonneCa]

10. But it's humid. n/t

[corporatemedia]

14. Yeah, like they said: it's humid. San Diego is like Florida without the thunderstorms...

and hurricanes!

[Tektonik]

5. Several reasons I could think of

SD real estate has still not reached the extreme prices of LA and the Bay Area and it continues to boast a growing economy.

Still plenty of real estate in desirable areas, not like LA where people resorted to snatching up homes in areas like San Bernandino and Riverside :puke:.

Best weather in the nation.

[Elspeth]

7. Why did they get homes in Riverside and SB? I know they were cheaper

But it's major fire territory out there.

And I would have thought that the fires would depress the demand for San Diego housing somewhat.

[Tektonik]

8. Even though many were affected by the fires, all areas of the country have had tragedies recently

LA has had fires
Gulf Coast had Katrina
Tornados still tear up the Plains and the Southeast
9/11 still looms
Hurricanes still batter Florida

The SD fires were tragic, but for most the effects of the fires were pretty ephemeral. The Cedar fires burned 2,232 homes and the 2007 fires burned 1,500 homes. Yes about a million people were evacuated at different times for the 2007 fires, but nearly all of them came back home to find everything intact.

Comparing that with Katrina or even Andrew (117,000 homes were damaged or destroyed) the devastation hails in comparison.

The Northridge earthquake was as destructive or worse than the fires. 40,000 buildings were damaged (including the Northridge Mall which collapsed and had to be rebuilt), plus many many freeways as well, which affected the commutes for millions for years.

The socal fires were bad, but until they hit the canyons in the city of San Diego, I don't think it would ever depress the San Diego market.

[YvonneCa]

11. Riverside ...

...homes cost about half the price of SD, but are within driving/commuting distance. Besides...wine country is great! :)

[Dreamer Tatum]

9. Plus a shortage of decent single-family homes

Excess demand has always helped prices in San Diego.

[Hawkeye-X]

12. The house next door is being put up for sale again

after it was taken off the market a couple of months ago. I do notice prices going down - still not enough - for people to buy McMansions - that's what they are doing now tearing down old houses and putting up insane 3 story houses for $2M

Hawkeye-X

[fed-up]

13. bullsh*t article-sales go up in spring-maybe more foreclosures are selling, but at what price

wishful thinking- fluff article-"present conditions suggest"
my neighbor sells foreclosures here in Butte County-she closed on 12 REO (real estate owned last month-usually those take a few months to process


In cities like San Diego, one of five major metros where transactions rose, that's good news, assuming it's sustained. What makes transaction volume a good indicator is that it shows how easy it is for people to get loans and how much confidence there is in the market. If mortgages are available and buyers have some faith in the value of the home, they're more likely to buy.

San Diego's present conditions suggest that over the next half-year, prices may start to rise. That's because "there's usually a three- to six-month lag between when transactions go up and prices go up," says Jonathan Miller, president of Miller Samuel, a Manhattan real estate appraisal firm.