San Diego Home Prices Slow

Today’s headline on the front page of the San Diego Union-Tribune “San Diego home price gains slow; falls in nationwide rankings” is gaining attention as our beloved home has been in 1st or 2nd place for highest gains for the last 11 months according to S&P Case-Shiller Indices and has fallen to 7th. The San Diego metro area includes all of San Diego County. The Case-Shiller Indices track single-family houses and the median resale single-family home price in the San Diego metro was $985,000 in August.

According to the article, “America’s Finest City wasn’t alone in a slowdown. The nationwide annual increase was 4.3 percent, down from 4.8 percent the previous month. ” San Diego still is still in the top 10 in the country for annual home price growth. New York City came in first followed by Las Vegas, Chicago, and Cleveland.

“Home price growth is beginning to show signs of strain, recording the slowest annual gain since mortgage rates peaked in 2023,” wrote Brian Luke, head of commodities, real and digital assets at S&P Dow Jones Indices.

Skylar Olsen, chief economist at Zillow, said things might be rough for buyers, but homeowners will likely see the value of their properties increase. “As we near the slower fall months, buyers are likely to continue refusing steep pricing,” she said, “but sellers should continue to expect record high home equity, especially in the northern and southwestern swaths of the U.S.”

Annual price growth by metropolitan area

S&P/Case-Shiller Home Price Index, July 2024

New York: 8.1%
Las Vegas: 7.3%
Chicago: 7.2%
Cleveland: 6.9%
Detroit: 6.0%
Los Angeles-Anaheim: 5.9%
San Diego: 5.7%
Boston: 5.5%
Washington, D.C.: 5.4%
Seattle: 5.2%

San Diego Union-Tribune article originally published: October 29, 2024 at 1:59 PM PDT