Homes values in San Diego continue to increase

Posted at 5:45 PM, May 31, 2016
and last updated 2016-05-31 20:47:16-04

Home values in San Diego rose 1 percent in March, compared to the previous month, and 6.2 percent over March 2015, according to the Standard & Poor's Case-Shiller Home Price Indices released Tuesday.

All 20 major real estate markets that make up the indices increased their home prices on both a monthly and annual basis, according to S&P.

The indices were created by taking home prices in those cities in January 2000, assigning them a value of 100 and tracking their subsequent rise and fall.

In March, San Diego stood at 221.35, representing more than a doubling of prices over nearly 17 years. The rate of increase is third nationally behind Los Angeles and San Francisco.

The 20-city index was at 184.50, an increase of 0.9 percent between February and March, and 5.4 percent from March the year before.

"Home prices are continuing to rise at a 5 percent annual rate, a pace that has held since the start of 2015," said David Blitzer, the managing director and chairman of the Index Committee at S&P Dow Jones Indices.

"The economy is supporting the price increases with improving labor markets, falling unemployment rates and extremely low mortgage rates," Blitzer said. "Another factor behind rising home prices is the limited supply of homes on the market."

Blitzer said the number of homes on the market is less than 2 percent of the total households in the U.S., the lowest percentage seen since the mid- 1980s, he said.