Mid-Range Housing May Benefit in Current Market

The following is the National and San Diego Home Prices compared to 3 Median CPI starting points for housing (high, mid, and low), and a projection past May 2009 (the latest data) which assumes similar behavior on the downside as the upside. The graph may help determine a probable range of values and a final "bottom" going forward (this indicates Dec 2011). Note that if housing has sold off nationally by 44% and in San Diego by 55%, it has reached the midline of "fair value" which may indicate a preliminary entry point. However, most data is lagging and this is no exception. In San Diego the market had a moderate bounce this year during the buying season. Be advised of the continuing risk.

Mid-range housing might benefit now from "move-downs" as those able to hold out longer find they've exhausted their options.