For the year 2007, the final tally was: low-priced homes down 23.1 percent, mid-priced homes down 16.0 percent, high-priced homes down 8.6 percent, and the aggregate index down 15.0 percent.
The accompanying graph indicates the decline that each price tier has experienced from its respective peak. As of December, the aggregate price index had declined by 19.1 percent from its peak in November 2005.
Despite the rather steep price declines to date, San Diego homes are still substantially overvalued in comparison to historical fundamentals such as local rents and incomes. I will examine this topic and update some historical housing valuation charts in the weeks ahead.
— RICH TOSCANO