San Diego Proves to be a Shining Light in National Housing Report
Considering the poor state of the U.S home markets, it comes as a pleasant surprise to many as San Diego turned out to be one of only three markets in February to have shown an increase in the values of homes on a monthly basis, as shown by the Case Shiller Home Price Index.
The national report, which is tracked by hundreds of realtors, suitors and property aficionados, showed that the values of local homes rose by a small 0.2 percent margin from the previous month to February, which is the first month to month increase to be recorded in the past six months. Apart from San Diego, only a couple of other markets showed a positive increase in home values in February; Phoenix was at 1.2 percent while Miami was at 0.6 percent. If you compare the prices of homes in San Diego from a year ago, the prices had dropped by almost 4 percent. However, declines on a year ago basis had also occurred in 14 different metropolitan areas in the index.
Atlanta however, had by far the weakest home values last month, had fallen by 17.3 percent from a year ago. It was reported by Case Shiller that 9 metropolitan areas, namely Portland, Seattle, New York, Charlotte, Atlanta, Cleveland, Chicago, Las Vegas and Tampa had hit new lows in recession. One of the areas which were heavily affected by the recession is Phoenix, but it is expected that Phoenix could comeback because according to the Case Shiller Index, it posted the largest monthly returns compared to the year ago basis out of all the areas that were included in the index.
The chairman, David M. Blitzer said that even though there are various pieces of good information that have been published in the report, including some positive annual rates of return, the overall report of February 2012 still pretty much confirms that home values and prices have continued to decline in the United States in the first quarter of the year.
As was evident from DataQuick’s report for the home sales in San Diego for the month of March, lower prices were the main reason for high sales in various different categories. Single family re sales grabbed the largest portion of total sales, and had risen by about ten percent from just a year ago. However, during the same period of time, the median price of a standard single family home had declined by 4.2 percent to around $350,000.
Professional real estate analysts such as Clemente Casillas, who plies his trade mainly in the South Bay, has said that the historically low mortgage rates as well as the lower than usual prices in various areas could be having a major impact upon sales. The Case Shiller Index analyzes changes that are made in value of homes on a national basis in 20 of the major metropolitan regions. It is calculated on a monthly basis, but features a lag of two months.