The hottest home markets in the country are usually leading indicators for the rest of the country: whatever they’re doing, it usually means Middle America won’t be far behind.
So if trending data out of San Diego is any indication, the rest of the country, which had been seeing steady growth, could soon be hitting the breaks.
In his latest blog post, Jim “The Realtor” Klinge points us to a clear trend emerging out of his home base, San Diego, which is usually at the forefront of the housing market: prices are plateauing.
“Back in the 2003-2004 frenzy that lasted about 18 months (sound familiar?), the prices leveled off for the next couple of years — until the easy money could support it no more.
“With mortgage rates and buyer enthusiasm both helping to temper the frenzy now, we will probably see a similar pricing plateau take place — and it’s already underway.”
Indeed, according to Zillow, the national plateauing has already begun…