Today's North County Times story about bidding wars corroborates our housing reports for this year: the San Diego housing market is heating up. Bob and I have been writing this year about higher demand and falling supply, at both the low end and high end of the market. As a result, we anticipate some price rises. These price increases could reverse after the spring buying frenzy.
The North County Time story attributes the bidding wars to a sharp fall in supply (20% year over year).
I continue to see that government intervention is helping to stabilize the market, so this "recovery" is not based on fundamentals of a healthy housing market.