America’s Finest City saw its annual price gain drop to 1.6 percent in December, said the S&P Case-Shiller Indices released Tuesday. That’s down from a 30 percent rise in March.
CoreLogic chief economist Selma Hepp wrote that the West and Mountain West are seeing prices drop the quickest, but all markets are affected by rising interest rates.
The interest rate for a 30-year, fixed-rate mortgage hit a low of 6.27 percent in December, said Freddie Mac, down from a high of 7.08 percent in November. However, rates were on the rise this week, around 6.78 percent Tuesday morning, said Mortgage News Daily.
There were 1,682 home sales in January, CoreLogic reported Tuesday, which was the lowest ever recorded in data going back to 1988. Before this, the slowest month was 1,742 sales in February 1995, when much of the nation’s housing market was going through a steady period of a decline after a run-up in prices in the late 1980s.
San Diego County’s median home price — which includes resale single-family, condos, townhouses and newly built homes — fell for the eighth month to $750,750. That’s down from a peak of $850,000 in May.
REVEALED: The four cities where house prices will fall the MOST since 2008 crash – San Jose, Austin, Phoenix and San Diego could see valuations plunge 25% as property across rest of US dips, Goldman Sachs warns
Goldman Sachs issued the housing market forecast in a report earlier this month
Projected peak-to-trough declines of 25% percent in several cities
San Jose, Austin, Phoenix and San Diego are expected to be the hardest hit
But Miami is projected to escape the correction, with prices rising slightly
Nationwide, Goldman says prices will fall 6% this year before rising again