SAN DIEGO, CA-It looks like smooth sailing ahead for the San Diego County housing market, as a recent report on the region predicts a continued steady performance in the region for the upcoming year.

According to the report, published by the First American Real Estate Solutions, the county’s housing market is “expected to maintain its strong and positive character” over the next 12 months. The prediction contradicts a popular theory that the region is currently experiencing a “housing bubble,” which is poised to burst sometime in the near future. The First American report attributes the rising prices instead to the region’s dearth of housing supply and historically low interest rates, characteristics that are expected to buoy the market for months to come. “After rising by 20% to 25% from October 2001 to October 2002, housing prices are subjected to surpass current levels and continue rising through 2003,” says Christopher Cagan, director of research and analytics for First American RES.

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