DataQuick analyst John Karevoll interpreted the prices and sales as a sign that San Diego real estate may be nearing the bottom of the post-boom period.
“Most of the declines in San Diego have happened,” Karevoll said. “Now it appears to be re-establishing a balance that we have yet to see for the (Southern California) region.”
They do say one thing right.
The credit crunch has had less impact on people who can purchase homes with “conforming” loans of less than $417,000, said Zoltan Pozsar, senior economist for Moodys.com. The higher cost of nonconforming jumbo loans “affects areas where house prices are out of line with fundamentals, like San Diego, like pretty much all of California,” Pozsar said.
