San Diego Real Estate Bubble Not Yet Ready to Burst

Michael Youngblood is a veteran analyst and theresearch has proven that the residential real estate
managing director of asset-backed securities researchmarkets within these California cities are more
for Friedman Billings Ramsey & Co. in Arlington, Virginia.optimistic than previously projected and currently
According to an interview he gave to BusinessWeekdebated.Youngblood assesses prices for the
for its May 15th issue, the idea of a national bubble forresidential real estate markets in 379 metropolitan
residential real estate is fictitious. Since there is nostatistical areas, including San Diego. Most residential
national residential real estate market, there can be noreal estate forecasters use reactive indicators to
national housing price bubble.There are, however,predict future market changes, such as
residential real estate bubbles in 75 housing marketsinventory-to-sales ratios and number of months
that he studies. Most exist either on the East or Westrequired to sell residential real estate. Youngblood
Coast. San Diego residential real estate market is onebelieves such indicators do not predict market
of them. In a study he conducted in 2002, San Diegochanges; they only react to market changes. He
was one bubble city of several for which Youngbloodcreated his own economic model, based on two
was concerned, along with several other cities withinpredictive indicators that actually drive the residential
the state of California and elsewhere. However, recentreal estate market.