The North County Times cited DataQuick Information Systems, saying that the median resale price for a single-family house in San Diego has risen 4.4 percent to $365,000. Some economists are saying that government intervention is the reason the housing prices have bounced back. However, some of the government programs that have helped bring the housing market back up are ending this year. One of those programs is the first-time home buyer tax credit, which ends June 30th. Another big program that ends this year is the Federal Reserve's purchase of mortgage-backed securities from Fannie Mae and Freddie Mac. This program ends March 30, and this could make banks less willing to lend to home buyers.
So will the housing market continue to get better, or will it plummet again after the government stops its programs? Opinions are split. I, personally, think that the prices will flatten out for a bit through the first half of 2010 and then continue their rise into 2011 and beyond. I have just as many buyers who don't seem too concerned about the $8,000 credit as I do buyers who are counting on it. I think most individuals can see beyond quick cash-in-hand to recognize that they have an amazing opportunity to own real estate in one of America's most expensive and desirable cities.
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