Jonathan Horn’s article in the San Diego Union-Tribune reports that according to the Case-Shiller price index San Diego County home prices are still rising but at a more moderate pace. Sales prices rose 1.8% from July to August, down 2% for the June to July period.
Forbes online reports on Case-Shiller statistics showing home prices in 20 major metro areas gained 12.4% in July 2013 from July 2012. “Average home prices across the country are back to their mid-2004 levels, according to S&P/Case-Shiller, and still roughly 20% below their June/July 2006 peak.”
Article in USA Today about the National Association of REALTORS (NAR) report on existing home sales. According to NAR their pending home sales index dropped 5.6% in September.
San Diego Union-Tribune story by Roger Showley reports that San Diego County is the second least affordable housing market in the U.S. San Francisco is the least expensive.
Roger Showley of the San Diego Union-Tribune reports on DataQuicks statistics indicating that San Diego area foreclosure and defaults are at a seven year low. 2006 was the last time the foreclosure rate was lower.
September existing home sales drop nationally according to a story in USA Today. But sales were still 10.7% above last year’s total across the country.
We’ve had very buyer high demand over and low inventory over the last year which has driven prices and sales volume up dramatically. There had to be a slow down in the pace of these increases.
The government shut down will effect home loan processing according to an article in Bloomberg. FHA loans will take longer to process thus slowing the improving housing market.
USAToday story about slowing home price appreciation across the country is good news. A 12% annual appreciation rate in the cost of any product or service is unsustainable. Owning real estate is traditionally a good hedge against inflation but the inflation rate today is 2% or less so it’s a good thing if housing appreciation slows to a more realistic pace.