Tuesday, January 10, 2012

U-T EconoMeter


EconoMeter: Will home prices rise in 2012?

Panel forecast overestimated 2011 increase by $21,000




Written by
Roger Showley
6 a.m., Jan. 7, 2012

Q: Will San Diego County median home prices rise in 2012? They dropped 6 percent from $335,000 in November 2010 to $315,000 in November 2011.

Panel's answer: Yes 5, No 3. Consensus 2012 median: $319,300 (2011 consensus was $336,250)

Marney Cox, San Diego Association of Governments

Marney Cox
ANSWER: NO
2011 and 2012 prediction, $300,000. Unfortunately, the significant hurdle of clearing the excess inventory of distressed properties is not yet complete. The foreclosure process is expected to peak in 2012 and liquidations, the following year. This additional supply is expected to push the median home price down 5 percent during 2012. The faster foreclosures are processed and returned to the market for sale, the more downward pressure on home prices and a quicker return to a normal housing market. To facilitate this process, regulators are considering a plan to sell foreclosed properties to investors who would renovate and rent them; preventing this correction only delays the inevitable, pushing the construction sector recovery off into the future.









REALTOR®, CIPS
Broker Associate at Keller Williams Realty.
Authorized HUD  Agent. Short Sale and Equator Experiences,
Ca. DRE. Lic# 01838443




1 comment:

  1. it is really important to ask for advice from realtors and attorneys when planning to buy a real estate.



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