There seems to be alot of talk about interest rates easing up in the near future. The fed is watching core inflation. They seem to be in a holding pattern. As the economy cools the housing market should balance out and pricing should stablize next near at a new lower benchmark as builders inventory starts to reduce. Just don't look for any appreciation any time soon. No more using a home like an ATM. Be conservative and save money. You know what else, let's start buying American if there are any products left!

It seems to me that it is a no brainer that Alan Greenspan decided to retire. He dropped the funds rate to low and created an real estate market frenzy, fueled with speculators and banks making wild loans to please shareholders. Now of course they are crying wolfe.

My opinion is right before 9/11 the rates should have stayed there.

What do you all say?

I am currently tracking 150 plus San Diego Foreclosures.
It seems by next year the San Diego Real Estate Market will
bottom out and then just run "straight line" for several years.
This happened back in 1990-1995.
Will the San Diego Home buyers come back once they are satisfied the market will not go lower?
What do you think?

As I was driving thru the areas of Del Sur and Black Mountain Ranch, I saw so many homes under construction.
I realized that much of this building was under the county and not the city permits.
Is anyone wondering where the water is going to come from that will supply these thousands of homes?
It seems like enough is enough. As a real estate broker I am very concerned.

Here we are in late summer of 2005. Interest Rates are still pretty low. San Diego apartment units are still selling at a low cap rate. San Diego office vacancies are very low.
San Diego shopping center space to lease in the San Diego north county real estate market is very hard to find and the price per sq. ft. is $3.50-$4.00. San Diego new homes including Temecula real estate and Murrietta real estate are still selling at a fairly brisk pace. Inflation is on the rise mainly gas prices are high obviously, but consumers are still spending. The San Diego job market still looks pretty good. San Diego homes according to the San Diego MLS seach results show more homes on the market, with some giving up some recent gains. But if the San Diego home seller is reasonable their home will find a buyer. We see this every day. Price your home right and it will sell....We would like to know your thoughts about were the San Diego real estate market is heading next year. What do you think?

Alan Greenspan, in his address to congress, stated yesterday that there is no bubble. This to me is huge support for our belief that the market is going higher. We we have seen in the San Diego homes for sale market is that many are holding off because they think the market is about to crash.

This statement of Greenspan supports our opinion that there is a few years more growth before the market starts to level.

So what does it mean? well if you want to play it safe in buying a home in San Diego and take advantage of the market then buy your next home with the thought "will I want this house for at least 10 years."

Stay away from what they call speculative housing investment;buying a home in order to flip it (resell it quickly) if you try to keep it for 2 years to avoid taxes.

But buying a vacation home or the home of your dreams that you plan on keeping for the long term will end up being a deal of a lifetime.

"But you are telling us to buy at a price that just two years was almost half"

Yep, that is true. You missed the boarding call but you still haven't missed the train. Back in the early 90's the market was hot like this. People camped out to wait in line to put a deposit down to buy homes in Rancho Bernardo then just a few years later they were dumping them and losing over 30% of their value.

But now those houses are worth two and a half times what they sold for at their highest peak back then.

Remember our fathers who said "I bought a house for only $7500 and now prices are crazy." Well this is what happens and you just went through your version. In ten years you will tell people when a home could be bought for $550,000 and look crazy.

What the real story behind all this how people are going to miss out on great deals because they are in the middle of a paradigm shift in what property will cost for the rest of your lifetime.

So get that property if you can afford it for a price that you think is crazy, because in twelve months you will have 20% more equity and in the time you think you want something else you will have forgotten we tipped you and you will give yourself all the credit for owning a home worth 3 times more than you paid for it.

Now this is for the San Diego market, if you were buying in a condemned area in Maryland? this doesn't apply.

Take advantage of the fact you are in San Diego, the most sought after real estate in the country. Don't Worry, if you buy a home today that will fit your lifestyle it will be worth 3 times what you paid for it when you finally out grow it. The train is still here, get on it while prices are still affordable.