FirstAm RES: No San Diego Bubble

Price appreciation in the San Diego real estate market is driven by the low supply of housing and historically low interest rates, and does not represent a price "bubble," according to First American Real Estate Solutions, Anaheim, Calif."After rising by 20% to 25% from October 2001 to October 2002, housing prices are projected to surpass current levels and continue rising through 2003," said Christopher Cagan, director of research and analytics for First American RES. "Short of a major external shock, such as a terrorist event or massive layoffs, there is no reason to expect the San Diego real estate market will not continue rising in 2003." Price increases ranged from single-digits to nearly 30% around the county, and there was no price decline in any significant part of the county, the company said. First American RES can be found on the Internet at www.firstamres.com.