Home prices in the San Diego metropolitan area are going up, but slower than everywhere else in the United States.
San Diego metro’s home prices increased 1.3 percent in a year as of January, said the S&P CoreLogic Case-Shiller Indices released Tuesday. It was the smallest increase of the 20 cities covered in the index for the second month in a row.
Home price increases are slowing across the nation, with many experts citing increasing mortgage rates. The most expensive markets are seeing the biggest slowdown.
Before last month, San Diego had not been in the bottom of the index since October 1996 (when the index was 19 cities). The last time San Diego’s annual increases were so slow was July 2012.
Former top metros in the index were among the bottom. Los Angeles was up 2.9 percent in a year and San Francisco up 1.8 percent in a year.
Low-cost markets posted the biggest gains: Las Vegas was up 10.5 percent in a year, Phoenix up 7.5 percent and Minneapolis up 5.1 percent.
“In 16 of the 20 cities tracked, price gains were smaller in January 2019 than in January 2018,” wrote David Blitzer, managing director of the index. “Some cities were prices surged in 2017 to 2018 now face much smaller increases.”
Last year at this time, San Diego home prices were up 7.4 percent.
The indices evaluate home prices by more than just price, tracking repeat sales of identical single-family houses as they turn over through the years. Prices are adjusted for seasonal swings. The median home price for a resale home in January was $588,000, said CoreLogic.
West Coast markets were hit especially hard by rising mortgage rates because already high prices meant small interest rate changes were devastating for some potential buyers, said Steven Thomas, founder of Orange County-based Reports on Housing.
Disclaimer: for information and entertainment purposes only