In a recent press release, it was stated that In San Diego, where luxury home prices have doubled in the past five years, values rose just 0.9% in the first quarter and 0.7% in the fourth quarter of 2005.
Agents said the market is returning to a more balanced state after a prolonged period of rapid appreciation. "It's just a normal, solid market after several years of somewhat frantic buying," said Bonnie Adams of Coldwell Banker in La Jolla. "We are seeing price reductions for properties that sit, but good properties are selling quickly." There are a growing number of homes in the $2 million to $3 million range, but there are also an adequate number of buyers, Adams said. She expects values to rise 5% to 10% in 2006 if interest rates stay the same or move slightly higher.
I think that expectation of appreciation is a little high but hopefully she's correct.
Posted by: Home Sales San Diego | July 19, 2006 at 02:12 PM
If she is right then we don't have housing bubble in all parts. Over here in Dallas Real Estate inventory is going down appreciation is better in some areas not all areas. Let us home we will have theory of equilibrium. As in some areas houses are 50-60$ SQFt i guess that is cheapest considering any part of USA. We are thinking Dallas Tx Real Estate market will boom for next two three years.
Posted by: Dallas TX Real Estate | September 21, 2006 at 04:17 PM