Q: Will San Diego County median home prices rise in 2012? Where will the median stand by year’s end?
By: Dr. Lynn Reaser
Yes. Several forces should drive a modest price in home prices this year. Job growth has picked up and the unemployment rate is slowly subsiding. Mortgage rates should remain near historic lows. Affordability has improved markedly thanks to the drop in both home prices and interest rates. The rise in apartment rents has also made ownership a more attractive option. The overhang of foreclosed homes, particularly in the inland areas, and high standards for loan qualification will still limit the overall rise to about 3%, taking the median price to $325,000 by year-end.