A Warning On Home Prices

The Seattle Times reports:

Beginning in late 1999, San Diego's house prices climbed at least 10 percent a quarter — for 25 consecutive three-month quarters, according to the Office of Federal Housing Enterprise Oversight (OFHEO). Five of those quarterly increases each exceeded 20 percent. Then prices stalled.

San Diego also has a strong history of price depreciation: 24 quarters since 1977. The worst occurred from 1991 to 1995, when a depressed economy caused home prices to dip for 17 consecutive quarters. That's more than four years.

Just a reminder.Excesses can happen.San Diego is right now in a decline phase with much more supply than demand.