Study says San Diego Housing Prices are Undervalued...as Much as 21.2%!

San Diego County used to be one of the nation's most overpriced real estate markets, as much as 40 percent above historic norms, according to the IHS Global Insight financial analysis company.
Yesterday, in a dramatic turnaround, Global Insight said housing prices in San Diego are 21.2 percent undervalued.

“It's definitely coming back from the boom,” said Global Insight economist Jeannine Cataldi.
The median price for a single-family home was $327,300 in the first quarter, the company said. Based on historic trends for household income, affordability and appreciation, the “normal” value should have been $415,300.

That contrasts with the peak of the boom market, in the third quarter of 2005, when Global Insight found the median price of $506,500 was above the norm by $144,100, or 40 percent.
From the peak, local housing prices have fallen 35.4 percent, back to a level last seen in the fourth quarter of 2002, the company said.

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