Panelists express optimism about real estate market in North San Diego County

Oct 08, 2008 (North County Times - McClatchy-Tribune Information Services via COMTEX) -- NCBH | Quote | Chart | News | PowerRating -- Real estate experts said a credit crunch and high foreclosure rates present obstacles for the North County real estate market, but they expressed optimism about the recent jump in sales during a panel discussion Monday night sponsored by the North County Times.

Lori Staehling, president of the San Diego Association of Realtors, said the housing market might be on the road to recovery.

"I think a year from now, you'll remember tonight and you'll go, 'You know what, we'd already gone past the worst of it,'" Staehling said. "When we see the sales number up this significantly, to me, that is the sign."

About 90 people attended the forum at the Escondido Public Library.

Not everybody agreed with the optimism.

Kelly Cunningham, another panelist and economist for the San Diego Institute for Policy Research, said the loss of jobs recently bodes ill for the immediate future of North County housing. However, he also said the long-term prospects for housing are positive based on population growth and the desirability of the area.

Jim Klinge, a real estate agent and blogger, said it is a tough time to buy a house as the Internet has created a remarkable amount of competition among the best houses priced at attractive levels.

On the topic of interest rates, loan officer Dave Hopkins with Rancho Financial said mortgage rates have reached historically low levels and probably will remain depressed as long as the stock market struggles, which makes mortgage bonds better opportunities for investors.

But that was not enough to convince Nandan Das, an engineer looking to a buy a house in Vista or San Marcos, that prices will be increasing any time soon.

"The one thing that I can't get over is the concept that if incomes don't go up, if industries don't come in and they're not hiring more people, where do we expect people to get the money to afford these houses?" Das said. "That, to me, is key to an uptick in prices."

Over the last few years, local incomes have not kept pace with inflation, according to data from the U.S. Census Bureau.

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