The Coronado housing market, a part of the larger San Diego County real estate market, may have become somewhat overpriced following several months of steadily rising property values. As a result, fewer Coronado homes for sale have been purchased, mirroring a larger trend of fewer home sales in Southern California. According to an August 28, 2010 article from the Voice of San Diego, "The low monthly payments are no doubt luring renters off the fence.  But as I've often discussed, when it comes to determining whether homes are overpriced on a sustainable basis it's the price-based ratios that matter.  Rates are low now and they are giving the market a boost, but that is a transient effect that lasts only as long as the low rates.  If an individual buyer can lock in a low rate and stay in a home indefinitely, great -- but how expensive homes are in comparison to their long-term fundamentals is a different question entirely, and one in which rates really aren't relevant. So we've got a serious mixed bag of signals.  The payment ratios say homes are dirt cheap, but alas, that is the far less meaningful indicator.  The more valuable price ratios are throwing off mixed signals -- by their account, aggregate home prices are reasonable compared to incomes but flirting with overvaluation compared to rents."

 

Several sectors of the Southern California housing market, including San Diego County, saw an increase in median price as well as a drop-off in sales figures during the month of July. According to an August 24, 2010 report from the Santa Barbara Personal Finance Examiner, "The report broke the data down into regions. Homes valued between $100,000 and $250,000 in the western United States declined 31.0 percent. Homes valued between $250,000 and $500,000 declined 24.7 percent. In southern California, home prices may have increased, according to the data. Prices were up 4.6 percent compared to the same period last year, while home sales declined 15.2 percent. The median price for southern California, including LA and San Diego, increased from $372,100 in July of 2009 to $389,400 in July of 2010. The higher prices may not last long because now there is a glut of homes on the market."