San Diego real estate blog - Peter Toner

A recent article on Forbes.com discusses which metro areas in the nation they consider to be the “Riskiest” buys for home purchases. They evaluated multiple sources of data regarding foreclosure statistics, employment growth, volume of sales, vacancy as well as inventory in order to determine which metro areas had the “riskiest” statistics.

Forbes “Riskiest” areas included Detroit, Cleveland, Denver, Orlando, Miami, and sadly our state’s capital Sacramento. Interestingly enough they felt as though the market in San Diego may be holding on, unlike some of these other areas in the nation. But come to think of it our property market here in San Diego was one of the first to suffer.

According to Forbes, if our market conditions continue in the direction they are currently headed we may see a gradual increase in prices over the next 6 months. How so, you ask? San Diego recently experienced an increase in transactions, which can be a good sign of confidence in the market. Another key factor to a market gaining back its confidence is the accessibility of loans. With the recent changes in Fannie Mae and Freddie Mac loan limits, there are more options available to home buyers. According to the Forbes article “Radar Logic, a real estate research firm, estimates that 18% of the market will see improved lending conditions” due to the latest changes made by Fannie Mae and Freddie Mac. The last key piece to a market revival, or resuscitation, is job availability and job security.

Does Forbes have it right? Time will tell …..