Lucy, Don't Get Too 'Cited....

Hola, People.

Lot's of news out there re home prices across the nation. Most area's prices have been going down, but a few have been going up. San Diego is 2nd in the nation (San Francisco is 1st at 16.2%) in year over end home appreciation at 10.8%, according to S&P/ Case-Schiller Home Price Index.

Before us San Diegans get all arrogant and start calling our friends and relatives in other cities, telling them to choke on that, we should look at the "why".

I would like to think that it's because God loves us more than other folks. I checked with my Pastor and he assured me that is not the case. The weather? The Padres are in 1st? More job growth than most areas? The best Mexican food on the planet (Chew on that, Texas!)? All good stuff, and it helps, but not the major reason.

1st reason is the big boys finally came out to play. Michael Lea, director of the Corky McMillin Center for Real Estate at San Diego State University, said "prices are rising because more higher-priced homes are selling than a year ago". Higher priced homes sell, the overall value goes up. Easy math.

Don't get me wrong, since people in the higher wampum bracket are selling is good news. “That’s a positive for the market overall,” Lea said. “We’ve been talking about a shadow inventory that existed, part of which is people who just held off selling because they thought prices were going to continue to go down. If more of those people come into the market, it’s healthy for the market to establish a nondistressed clearing mechanism.”

The next reason is the amount of inventory. Homes under $500,000 are getting gobbled up quicker than cheese cake on my plate. There's just more buyers than homes out there in the lower priced categories. This is keeping prices pretty stable. Sometimes it even drives the prices up,especially when all cash offers are competing against each other.

Note. Appraisers are not letting the prices get too out of hand. Just because there is 20 offers on a property does not mean the highest price will still get a favorable appraisal. Supply and demand means nothing when it comes down to appraisal. They can only go off of current comps.

So, these are good #s in San Diego. Things are looking up. But, the #s do not tell the whole story.

Let me know if you want comps ran on your home or on an area you are digging. 619-507-7449.

God Bless