Steve Doyle’s Blog

San Diego residential pricing is 21% below normalized value, so says IHS Global Insight, a financial analysis company.

As reported by Roger Showley of the San Diego Union Tribune, IHS believes the median price of a single family home in San Diego County is now almost $88,000 less than one would expect, if a normalized market had been in place since 1985.

This analysis has been reviewed by economists across the country. Professor Norm Miller from the University of San Diego found the approach reasonable and believes that home pricing will trend back towards a more normalized value, according to the article.

I brought the issue of normalized prices up in my March 18th posting … “San Diego Home Prices Go Up!“. Historically, we have seen “over corrections” in the pricing of the residential real estate market as we near the bottom of an economic recession. San Diego experienced this phenomena in the early 1990’s and now we see history is repeating itself.

Again, situations like this provide home buyers with excellent opportunities. When combined with historically low mortgage rates and tax credits, the deals get even better. Visit a new Brookfield Community to learn more about these historic values.