Average Home Price in San Diego Over $400K
The average home price reached $422,000 in October, 15.5 percent higher than October 2001, according to the annual report by the Economic Research Bureau. The home price has surged 10.3 percent from April 2002. According to the survey, which included homes in over 55 communities in the county, home prices have nearly doubled over the past year. Home prices have risen for the past seven years in the county. The growth was attributed to low interest rates, growth restrictions and the enormous demand for housing in San Diego.
Some information courtesy of the San Diego Regional Chamber of Commerce.

San Diego Regional Economy Expected to be Stronger than Overall State's Growth
San Diego's regional economy is expected to experience modest growth despite some slowing in 2002. The economy is considered relatively sound according to the economic research bureau, a branch of the regional chamber of commerce. "From September 2001 to September 2002, San Diego had the highest job growth in Southern California," said Kelly Cunningham, an economist and research director. "Even though we lost thousands of jobs in the telecom and computers, software companies are hiring and electronics component employment is growing." According to Cunningham, the biotech and defense industries are also strong and will continue to grow in 2003. San Diego's gross regional product is expected to reach $133.6 billion this year, about the same as the countries of Israel and Portugal, making it the 35th strongest in the world. The Gross Regional Product is expected to grow by 3.3 percent this year. For more information, please visit www.sdchamber.org and click on "Economic Research Bureau."
Some information courtesy of the San Diego Regional Chamber of Commerce.

San Diego Not Livable for Many Renters
The lack of affordable housing continues to put the squeeze on San Diego renters. For years the area has been on various top ten lists as the least affordable places to live. The problem is not unique to San Diego - nationally the number of families spending more than half their income on housing rose 24 percent in two years. However, the problem in San Diego is exacerbated by the housing shortage in all forms - particularly affordable housing. According to a recent survey by the San Diego Association of Governments, only about eight percent of the remaining developable land is zoned for rental housing. Renters make up just over half of the housing market in some areas of the county and are 45 percent of the market nationally. Rental rates also will continue to grow steadily, fueled in part by the increasing costs of maintaining and running a rental property. Increasingly stringent housing regulations challenge property owners.
Some Information courtesy of the San Diego Union Tribune

Housing Shortage Good News for Owners
There's no slowdown in sight for the growth in property values. Realtors predict that the overall local housing market will remain strong in 2003. The real estate market has been one of the state's strongest industries for the past few years and there's no sign of collapse despite the rising home prices. Owners will continue to reap tax benefits and investment appreciation from their homes. There are several specific reasons:

1. Low mortgage rates are allowing buyers to remain in the market, despite rising prices. Favorable financing terms with interest near cyclical lows are expected to continue.
2. The housing market will enjoy a powerful boost from homeowners who are taking money out of the sagging stock market and putting it into real estate.
3. Contrary to some conventional economic thinking, there are no signs of an imminent collapse of housing prices, even at the very high end. Don't expect any "bubble" to burst from an over-heated market.