Economists predicting price decline over next year

Reports continue to be mixed on what home prices will do in San Diego.

Three weeks ago, the California Association of Realtors projected resale home prices to remain flat or rise slightly in 2011.

A story here today in the San Diego Union-Tribune painted a much different outlook, with an 8.5 percent dip in prices projected for next year.

State and federal buyers' credits were cited for propping up the market earlier in the year, but those credits expired on September 30, nothing was renewed and their has been no talk of another round of credits.

Interest rates will be key over the next weeks and months. If they show signs of rising, then it could prompt buyers to action in order to take advantage of rates that haven't been seen in most peoples' lifetimes.

Local prices expected to remain flat in 2011

The California Association of Realtors projects resale housing prices in San Diego to remain flat or rise slightly in 2011.

Although resale prices rose by 20 percent in San Diego County in the first half of the year, that figure slipped to 2.4 percent in August. The initial rise was not as strong as most of the state's other areas as it was in San Diego, which tends to trend upward or downward ahead of the remainder of the state.

More details from CAR, a graph tracking year-over-year prices and other information can be found in a Union-Tribune story here.