Is San Diego Undervalued

According to Global Insight, a financial and economic analysis firm, home prices in San Diego County have fallen 32% of its peak.

According to James Diffley, who directs Global Insight's regional services group,

“A metro area like San Diego has, in a sense, fallen too much. You still have a huge amount of properties for sale. That's going to depress prices further, regardless of what you think about the (area's economic) fundamentals.”

He cautined that because of the looming foreclosures though, prices could drop another 10%.