San Diego metro prices gains were the lowest in the nation for fourth month in a row on the 20-city index. It was tied with Los Angeles metro, also at 1.3 percent, joining other expensive markets in substantial drops.
Analysts point to modest wage gains and prices going up too quickly as reasons why buyers are staying out of the market. Nationwide price gains were still nearly double the rate of inflation at 3.7 percent, although that is down from 6.5 percent at the same time last year.
“Given the broader economic picture, housing should be doing better,” wrote David Blitzer, managing director of the index. “Mortgage rates are at 4 percent for a 30-year fixed rate loan, unemployment is close to a 50-year low, (there is) low inflation and moderate increases in real incomes would be expected to support a strong housing market.”
The last time home price increases in San Diego metro were as slow was summer 2012. Yet prices are still going up, unlike the Great Recession when prices were down annually by double digits. In October 2008, home prices were down 26.67 percent year-over-year.
Lower cost markets across the United States saw the biggest gains in March. Prices were up 8.2 percent in the Las Vegas metropolitan area, 6.1 percent in Phoenix, 5.3 percent in Tampa and 4.7 percent in Atlanta.
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