Local home prices were down 24.9 percent at the end of January compared to their level a year earlier, according to the most recent Standard & Poor’s home price index released this morning.
The county’s drop from the peak crossed the 40 percent line for the first time with this index. Prices in the January index were down 40.8 percent from the November 2005 market peak.
Even with that drop, San Diego prices remain about 48 percent higher than they were in January 2000, before the six-year bonanza when prices zoomed upward 150 percent.
Like in blog may be captured in a future Case-Shiller index. The index lags by two months.
Klinge will participate in an upcoming voiceofsandiego.org real estate and economics forum you won’t want to miss. Mark your calendars for April 23, 6 p.m. in Liberty Station at Building 176, Studio 106, 2445 Truxtun Rd.
A note on the Case-Shiller index: Local University of San Diego real estate professor Norm Miller said in a conference call yesterday that the Case-Shiller index, among others, overstates the extent of price drops in the real estate market and that a typical homeowner’s price change is probably about 50 to 60 percent of what’s shown in the index. Miller conducted the call with his co-principal of real estate analytics firm Collateral Intelligence.
David Blitzer, chairman of S&P’s index committee, defended the indexes and the inclusion of distressed and foreclosure sales in them in a Reuters story about the conference call. Here’s Blitzer:
If you only want to include cases where people hold out for the best price, you’ll get a much happier index but it would not be an accurate representation of the market.
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