San Diego and the Housing Market Prepared for Comeback !

Do you think the press plays an important role in market conditions, or are they "backing off" because things are getting better?  I've heard a lot about San Diego, but I'd like to know how low prices have gone from peak?  Did they drop 20%?

Hi Ardell, I would say between 4 and 8 % max. But prices were inflated by probably 10 to 12 and so there was still a real gain in values. In some areas the prices have actually increased. As to the press, they still have their fingers in the pie trying their best to find and justify any data that keep the flames fueled. I posted to so, their was an article today that we will be seeing a drop in employment because of the slower ( normal ) market conditions and that will exacerbate the housing market decline further. Let's see. We don't have a drop in employment as yet, maybe a few will lose their jobs when they read  that people need to lose their jobs , so fire them already. We need to keep this housing slowdown  moving down, don't we? It has long since being considered journalism. It is little else than prognostication. You have give them credit, they are relentless.

William - So nice to hear the voice of reason speaking.  Yes, I too believe we are normalizing.  Here in South Orange County we're experiencing a leveling of prices but overall I beieve we'll finish the year with a slight gain from 2006.  Thanks for another intelligent post.

Hello Marlene- No sooner had I written this than the Union Tribune has started a hard hitting campaign with a new twist. Predicting  the job market could fall and then WHAM! The housing market will be reacting again. So far things are holding in the job market, so why the headlines? The same self fulling crap that always spew.

This is the message they are sending to the readers: It is time to start firing people again, cutting back the size of the work force would be good for your profits so lets have some help here fellas. We have got the hosuing stories to do and we need a drop in employment so we can keep the housing downtown fueled. If you are a seller, tough luck. If you are buyer, we are helping so you so please become a subscriber to the paper and read our ads too. The big guys will be having sales and we will let you know about it. OK? Let's get a move on now, we need these lower employment numbers , so no time like the present to send out those Pink Slips.

Hi William,
Another good post.  We believe here in our area that the market would level out if the media would just stop
with the negative dribble day after day.  One of the first blogs I posted on AR was in regards to the news media.
Which by the way, I labled for "Associates Only" not understanding what that meant. LOL.  

We have seen more activity in the last 2 weeks than in the previous 3 months--we're optimistic. 

Cynthia-Thank you so much for commenting. Thankfully the medical profession doesn't do ( or least rely on) what the newspapers do. Imagine if you were diagnosed with something  and all the doctors kept telling you that matter what we do, it can't get better and we predict you won't make it. Now, your illness is not to serious yet, but we predict you won't take care of it anyway, so we see anything you do to get well as just a waste of time. You are going to die one day anyway, so it might as well be sooner than later.

Can you imagine, the feeling of hopelessness that would exist in the world. Well Cynthia, we fill our heads everyday with just that sort of stuff. The news of what's past is news of what's past. The problem is , the newspapers and the news outlets on TV want to be the predictors and the prognosticators. They don't have remedies, just ways of focusing that hopefully will be self -fulling prophecies that generate more bad news. 

Our quagmire is that no matter whether we believe in what is being said, enough others take custody to make it a self-fulling prophecy anyway. We in the real estate industry try to give the opposite counseling and with the push from the other side, you end up looking foolish.

So what makes good markets. When Banks and Wall Street  coupled with administrations that provide good tax incentives. The new charge ahead is that with all the problems of the sub-prime market, higher interest rates and a distracted administration, the goal of home ownership was mostly realized. The cost of homes was going up so high and too much profit. It was hurting the stock market. Everyone wants their turn.

The negative news has given investors new hope, allowed for some profit taking, allowed for increased spending from a lot of built up equity wealth that needed to be moved back into the re-cycling economy.

Nothing is by accident-it is the number of people who claim to be expert wanting credit for the "I told you so", that keep driving the market.

Another new bog was just created only I won't be writing it,lol There are no winners when truth is discussed as the messenger is usually taken down. Nothing should ever be totally truthful,right? It just doesn't pay, besides if someone had all the right answers , where would that lead the scores and scores who want weigh in with opinions and profit from it?