S&P: Home Prices in San Diego, D.C. 'Recovering'

San Diego Union-Tribune -- Home prices in San Diego have held steady and are faring better than most major metro areas that continue to see drops, show Tuesday's S&P/Case Shiller Home Price Index.

The local region and Washington, D.C., were the only places to post annual gains in January, the last full month of data in the 20-area index since it operates on a two-month lag.

...There's usually "seasonality" when it comes to home prices and sales, but it's less so in this market because of "government distortions" that included the the first-time homebuyers tax credit and loan modifications, said Norm Miller, real estate professor at University of San Diego.

Miller takes the slight annual gain for San Diego as a "good sign" since it indicates flatness.

However, the region won't see significant process until it rids itself of distressed properties that are dragging prices down. (Full story)