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EconoMeter panel looks at home prices rising

Roger Showley, U-T SAN DIEGO

Friday, May 30, 2014

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Kelly Cunningham, National University System
Answer: YES

So long as mortgage rates remain low, and San Diego's supply of new housing remains constrained, it is difficult to foresee housing prices not continuing to rise. However prices are starting to get out of balance with local incomes, and investors are getting wary. San Diego's home prices are 5.5 times median household income, out of balance for healthy financing terms. So prices are likely to continue to moderate after the high gains of the past few years.