Finance

San Diego Home Prices Continue to Spike, With 8.2% Rise Over Past Year

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For sale sign
A for sale sign in San Diego. Photo by Chris Stone

San Diego home prices continued their last-summer spike in September, and are up 8.2 percent over the past year, according to the authoritative Case-Shiller Index.

The report released Tuesday morning ranked Seattle, Las Vegas and San Diego as the three metropolitan areas with the fastest growing home prices.

San Diego prices rose 0.5 percent in September after a 0.8 percent spike in August. The national average was 0.4 percent in September, 0.5 percent in August and 6.2 percent for the past 12 months.

“Strength continues to be concentrated in the west with Seattle, Las Vegas, San Diego and Portland seeing the largest gains,” said David M. Blitzer, managing director at S&P Dow Jones Indices. “The smallest increases were in Atlanta, New York, Miami, Chicago and Washington.”

Rising prices have raised concerns about housing affordability, but Blitzer said “most economic indicators suggest that home prices can see further gains” thanks to a growing economy and low housing inventory.

“Rental rates and home prices are climbing, the rent-to-buy ratio remains stable, the average rate on a 30-year mortgage is still under 4 percent, and at a 3.8-month supply, the inventory of homes for sale is still low,” he said.

But Zillow Chief Economist Dr. Svenja Gudell warned of a developing imbalance in the real estate market.

“Demand is coming first and foremost from buyers in the entry-level and mid-market segments, but available inventory is largely concentrated at the high end — causing the nation’s most affordable homes to grow in value at more than twice the pace of homes at the top of the market,” she said.

San Diego Home Prices Continue to Spike, With 8.2% Rise Over Past Year was last modified: November 28th, 2017 by Chris Jennewein

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