There was an item in the paper the other day about the latest increase in the median price of homes in San Diego county. People who don’t know better and Realtors who want to pump up the market are claiming that this is proof of a recovery.
The reality is that it merely reflects a change in the inventory that is closing. The REOs that are selling are now at a higher part of the market than the low-end homes that were the first to go into foreclosure. I really doubt that the value of a given home here in San Diego has gone up much if at all in the last year.