Hat tip to kwaping for sending along this U-T article on San Diego being 21% undervalued:
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.
From the peak, local housing prices have fallen 35.4 percent, back to a level last seen in the fourth quarter of 2002, the company said.
This was the fourth consecutive quarter that San Diego housing prices were below what the company considers to be the normal price. It was the biggest gap since the second quarter of 1999, when the median price of $190,400 was $53,400, or 21.9 percent, below the theoretical norm.
“Undervalued” is a strong word, but we could describe today’s market as “red hot”.
Oceanside’s 92057 zip code has 85 active listings of detached homes, and 227 PENDINGS,
If you’re looking under $200,000, it’s even hotter – 10 actives/61 pendings!
Here are the detached actives and pendings around town, and how they compare to last year:
Active/Pending Listings Ratio of Detached Homes
|Town or Area||Zip Code||4/08||9/08||6/09||Act/Pend 9/08||Act/Pend today|
|San Mrcs N||92069||3.30||1.91||0.41|
|San Mrcs S||92078||3.24||3.50||0.63|
Folks in Rancho Santa Fe sure are resilient, aren’t they?
In the 2000-2004 time frame, the ratio was around 2:1, with the hottest times as low as 1:1. Today there are TEN areas UNDER 1.0!
0-3 Hot market
3-4 Regular market
4-5 Market in trouble
5-7 Too many choices