This company has been publishing this index for a while. It is interpreted as the percent chance that an area will experience lower prices in two years.
Let’s see what they said 2 years ago:
In the Summer of 2007, the percent chance of San Diego experiencing lower prices was … 55.5%.
I don’t know what to make of this index, it appears to be good at projecting recent past data into the future. That’s about it.
There are other interesting things in their report.
Their affordability index for San Diego for 1Q 2009 is 131*. This index is based on affordability relative to 1995. The interpretation is that housing in SD in 1Q 2009 was significantly more affordable than in 1995.
* Reference – Pages 6-7 of the “2nd Quarter 2009 Economic and Real Estate Trends Report” found here:
