Saturday, July 7, 2018

Miami Housing vs. San Diego Housing – Who Wins?

(Click on the image to enlarge)
The Median Price trend of Miami has tapered, remaining directionless since October (#10) and without forming any meaningful support. The reason the primary trendline is diverging from the moving average is that both peaks (#7 and #8) and troughs (#10 and #11) are formed by two conforming data points, forcing the 2-Mo Mov Avg to remain in compliance with the data trend, but at variance with the primary trendline.  

The San Diego Price chart shows meteoric growth in the first half of 2017, followed by healthy sideways within a tight range of $545K to $555K. Even the December (#12) drop - nothing spectacular - was quickly reversed, pointing to the solid market fundamentals. The fact that the 2-Mo Mov Avg trendline follows closely the data line proves a fairly non-volatile price curve. Both trendlines are however confirming the reversal, including the peak. Any breakout above the prior high of $557K would make the curve even more backward-bending (more bullish).

Given the fact that San Diego managed to hang on to the early-2017 appreciation, consolidated with minimal volatility and formed solid support makes it a clear winner over Miami which remained very volatile, to say the least.

- Sid Som, MBA, MIM
President, Homequant, Inc.
homequant@gmail.com

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