Home prices in the San Diego area resumed their rise in November after an unexpected decline in October, the widely followed Case-Shiller report revealed Tuesday.
San Diego home prices rose 0.3 percent in November, reversing a decline of an equal amount in October, and were up 6.0 percent over the past year.
Nationwide home prices increased 0.1 percent in November and 5.3 percent for the past year. San Diego comes in a little above the national average, but a number of metro areas are experiencing much bigger increases.
Portland led the nation with an 11.1 percent year-over-year price increase, followed by San Francisco with 11.0 percent and Denver with 10.9 percent.
“Home prices extended their gains, supported by continued low mortgage rates, tight supplies and an improving labor market,” said David M. Blitzer, managing director at S&P Dow Jones Indices. “Sales of existing homes were up 6.5 percent in 2015 vs. 2014, and the number of homes on the market averaged about a 4.8 months’ supply during the year; both numbers suggest a seller’s market.”
Zillow, an online real estate company that frequently reports on housing trends, said steady price increases suggest the housing market is returning to normal.
“The housing market in 2016 is poised to be as close to ‘normal’ as we’ve seen for quite some time,” said Zillow Chief Economist Dr. Svenja Gudell. “Home value growth has largely stabilized at a sustainable level and the runaway appreciation that marked the last few years has passed, even as some markets remain much hotter than others.”
She predicted that smaller markets in mid America may become very attractive to buyers in search of good job prospects and a decent home-buying value.
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