San Diego real estate sales, after the just expired tax credits, look like they are about to soften again.
It would seem that the federal tax credits merely postponed, delayed, or softened a meaningful and inevitable correction. Plus, I don’t know if low interest rates alone will keep existing home sales on the upswing, Don’t be fooled by the upcoming home sales reports because many of the homes that went under contract in April had closings scheduled for May and June.
Just like we saw with Cash for Clunkers, these government cash programs just pull sales forward with little real new sales. “Expect a payback in July and August,” said Zillow economist Humphries, “A lot of current demand in the marketplace has been stolen from those months.” “The period of sustained, dramatic declines in home values is over in most markets,” Humphries said. “We’re entering, now, a period of negligible price appreciation which will last for the next three to five years.”
There are certainly good buys for those who do their homework, whether it be for a personal residence or investment, but there are still many pitfalls. People who have bought in San Diego and certain other metro areas such as New York, Las Vegas and Los Angeles in the last 3 years did so convinced they were getting the bargains, only to find they were catching a falling knife. San Diego housing market
