San Diego home prices continue slow, steady rise

Posted at 11:15 AM, Jun 28, 2016
and last updated 2016-06-28 14:15:23-04

Home prices in San Diego continued their slow but steady climb in April, rising 0.8 percent over the previous month and 6.3 percent over the same period last year, according to the Standard & Poor's Case- Shiller Home Prices Indices released Tuesday.

The monthly and annual increases have been relatively similar in the reports since last summer.

The indices were created by taking the cost of housing in the 20 cities in January 2000, assigning them a value of 100, and tracking their subsequent rise and fall.

San Diego's index reading in April was 223.05, representing more than a doubling of value in over 16 years. Only Los Angeles and San Francisco have seen home values increase at a faster rate.

All of the markets in the indices saw home values rise in April on both a monthly and annual basis. The 20-city index stood at 186.63, 1.1 percent higher than March and 5.4 percent more than April 2015.

"The housing sector continues to turn in a strong price performance with the S&P/Case-Shiller National Index rising at a 5 percent or greater annual rate for six consecutive months," said David Blitzer, managing director and chairman of the Index Committee at S&P Dow Jones Indices.

"The home price increases reflect the low unemployment rate, low mortgage interest rates and consumers' generally positive outlook," Blitzer said. "The result is that an increasing number of cities have surpassed the high prices seen before the Great Recession."

He said seven cities -- Denver, Dallas, Portland, San Francisco, Seattle, Charlotte and Boston -- are at their all-time highs in the index.

On the other hand, some details in the data "hint at possible softness" in the real estate market, and Britain's recent vote to leave the European Union will create some uncertainty, according to Blitzer.