Home prices in San Diego were up 5.8 percent annually at the end of the summer, but the rate of growth has slowed, according to the closely-followed Case-Shiller index.
S&P Dow Jones Indices reported Tuesday morning that San Diego home prices rose 0.1 percent rise in August and were up 5.8 percent over the past year. That compared to a national increase of 0.5 percent in August and 5.3 percent for the year.
The gains were highest in the Pacific Northwest, with Portland experiencing an 11.7 percent year-over-year price increase, followed by Seattle at 11.4 percent.
“Supported by continued moderate economic growth, home prices extended recent gains,” says David M. Blitzer, managing director at S&P Dow Jones Indices.
He noted that the national home price index has almost surpassed the peak set 10 years ago before the Great Recession.
The chief economist for the online real estate service Zillow, Dr. Svenja Gudell, said the U.S. real estate market “has been pretty resilient in the face of a continued shortage of homes for sale” but more construction is urgently necessary.
“The market can’t stay on this course forever,” she said, noting that “continued inventory shortages are leading to intense competition, escalating prices and mounting buyer frustration, with the average home search over the past year taking more than four months.”
