Local Housing Price Increases Don't Raise Concerns
PROPERTY: Market Forces Said to Be at Play, Not an Overheating
Mike Allen, SAN DIEGO BUSINESS JOURNAL
Monday, April 15, 2013
“I don’t think the price increases that we’ve seen to date represent a bubble,” said Erik Bruvold, president of the National University System Institute for Policy Research. “But if they go up 10 to 15 percent more over the next quarter or two that would be worrisome.”
Citing the Standard & Poor’s / Case-Shiller Index, Bruvold noted the median price for San Diego in January increased 9.8 percent over the past year. That ranked the region ninth highest among a group of 20 largest metropolitan areas. The biggest increase at 23 percent was Phoenix, while the third largest was Las Vegas, where the median rose 15 percent. Both cities were among the hardest hit in the housing market crash with housing values plummeting by well over 25 percent.