Forbes outlook: SD in top 5 home markets in '11
BY LILY LEUNG TUESDAY, FEBRUARY 1, 2011
JOHN R. MCCUTCHEN / UNION-TRIBUNE STAFF
A home in Solana Beach, an area that saw an increase in median home price from 2009 to 2010, according to DataQuick Information Systems. The median price for all types of sales in that ZIP code rose from $1,106,250 to $1,175,000, or 6.2 percent, based on 22 sales in 2010. Twenty-seven homes were sold in 2009. Which California city from Forbes' rankings will see the most price gains in '11? San Jose Santa Ana San Diego
Cities where home values will likely go up: San Jose Santa Ana Bethesda, Md. Pittsburgh San Diego
Cities where home values will likely fall: Daytona Beach, Fla. Lakeland, Fla. Orlando, Fla. Boise, Idaho.
Las Vegas San Diego ranked No. 5 out of 315 housing markets that Forbes.com says are poised for price increases in 2011 and in the coming years. (See The Best And Worst Cities For Home Values In 2011.) The finance publication predicts that the median home price in San Diego will rise 2 percent in the next 12 months and through the next three years, based on findings from Local Market Monitor, a research company that analyzed data from real estate markets throughout the U.S. The company also factored in the areas' unemployment and job growth rates. (Television station NBC San Diego reported the findings on Monday.)
Two other California cities - San Jose and Santa Ana - topped the list of U.S. cities where home values are likely to rise steadily over the next three years. Median home prices in both San Jose and Santa Ana are expected to rise 3 percent in the next 12 months and an average of 2 percent annually over the next three years. While Forbes predicts California to head toward somewhat of a housing recovery, it says Florida shouldn't hold its breath. Cities in the Sunshine State dominated the list of cities in the country that are expected to fare the worst in home values: Daytona Beach, Lakeland and Orlando. Forbes quotes Ingo Winzer, president of the Local Market Monitor, as saying, "The big difference between Florida and Southern California ... is people are moving into Southern California, but they're not moving to Florida." Five out of eight contributors of the Union-Tribune's Econometer also believe the region will see an increase in home prices.