The La Costa real estate market, part of the larger San Diego County housing market, has shown a consistent improvement in terms of median price during the most recent tracking periods. According to a September 28, 2010 report from the San Diego Reader, “Standard & Poor's Case-Shiller home price indices published this morning (Sept. 28) show San Francisco, San Diego and Los Angeles home values continuing to rise stoutly on a year-over-year basis, but S&P's David Blitzer says those expecting a return to lofty 2005-2006 levels may be disappointed. "Stable prices seem more likely," he says. San Diego home values rose 9.3% in July from a year earlier. San Francisco's were up 11.2% and Los Angeles's 7.5%, as California continued to pace the national rebound. One positive: San Diego values rose 0.7% from June to July versus 0.4% from May to June. However, Case-Shiller numbers are smoothed over several months. The effect of the first-time home buyer stimulus still has not faded from the numbers, warns Blitzer.”

The San Diego housing market has been one of the strongest examples of the recent economic recovery, posting relatively strong gains in most of the tracking periods. La Costa homes for sale have been purchased at a higher rate and for a higher price than many other regions in the Golden State. The greater San Diego region, including La Costa, has also been facing difficulties in the hotel market, with an extremely high rate of San Diego foreclosures during the third quarter of the year. During the three month period ending September 30, there were more than five hundred hotels in default or foreclosure throughout the entirety of California. This was a substantial increase over the last fiscal quarter, while it was more than a seventy percent jump from the same time last year. Among the cities of California, San Diego showed the almost the highest proportion of distressed hotel properties. For the most recent tracking period, the total arrived at approximately three and a half dozen distressed properties. It is also unclear how the expiration of the federal housing tax credit will impact residential and commercial properties.

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