San Diego Real Estate Escapes “Weakest Markets”


by Roberta Murphy

It should come as a big relief to San Diego home owners and current buyers of San Diego real estate that San Diego and its surrounding communities escaped Moody’s recent compilation of the 25 Weakest Real Estate Markets in the United States

Las Vegas has the most dismal forecast, with a 42.6 percent drop in values expected between the second quarter of 2008 and late 2009, when the Las Vegas real estate market is expected to bottom.  Miami runs a close second, with a 42.4 percent drop expected into late 2010, followed by Palm Bay, FL with an expected 41.4 percent drop, with same expected recovery time as Miami.

Florida accounts for 10 slots in the Weakest Markets lists, while California only grabs five, with all expected to be in recovery mode at the end of 2009. Among those cities–with expected percentage drops in parentheses– are Santa Ana (-29.1), Stockton (-27.7), Los Angeles (-27.2), Fresno (-26.7), and Riverside (-26.4).

Florida’s losing cities, in addition to Miami and Palm Bay, are Fort Lauderdale (-36.6), Jacksonville (-33.6), Bradenton (-33.6), Cape Coral (-25.6), Deltona (-27.9), Tampa (-30.4), West Palm Beach (-31.8) and Orlando (-32.3).  All these Florida cities are expected to recover between the end of this year and late 2010.

A decline in demand for second homes in the mountains may account for the declines in Provo, Utah (-33.9), Salt Lake City (-29.3) and Boise Citiy, Idaho (-32.2), where recovery in not expected until 2011.

Others on the list are Honolulu (-30.9 until early 2011), as well as Camden, NJ (-25.7) and Newark, NJ (-25.6), which are expected to begin recovery at the end of 2009.

Also on the list are Tucson (-32.9) and metro Phoenix (-31.1), who also have an expected recovery in late 2009.