Standard and Poor’s Case Schiller home price index rose again by 2% in the nations largest 20 markets. San Diego is included in this and we are seeing a steady climb to values and demand.
Since January we have seen steady gains, with a steady drop in interest rates and drop in unemployment we are seeing buyers coming back to the market. The Fed also announced this week that it will hold rates low until the unemployment rate hits a level of 6.5%.
Many believe that the latest figures for 2013 marks the beginning of a Real Estate recovery.
“What our anticipation here is, we’re gonna pick up paces from here,” said Marney Cox, the San Diego Association of Governments chief economist. “We’ll no longer see the 1.3 percent rates of growth, or 2 percent, from this last quarter. But instead we’ll begin to rise above that and hit the 2.5 and 3 percent rates of growth.”
There are some concerns about the fragile bounce upward, said Cox, who worries about major events overtaking the improvement.
The federal government could impose huge spending cuts and tax hikes at the end of the year as lawmakers try to avoid what some are calling the “Fiscal Cliff.” Cox said Europe’s economic troubles could also wash out a weak recovery here.