Home prices in San Diego rose 0.3 percent in November according to a widely followed index as concerns about about housing affordability continued to grow.
The Case-Shiller Index released Tuesday morning showed the pace of rising prices picked up in November from October’s 0.1 percent growth. Over the past year, San Diego home prices have risen 5.8 percent.
While San Diego’s increase was high, it was only slightly above the national average of 0.2 percent for the month and 5.6 percent for the year.
Cities in the Pacific Northwest reported the highest year-over-year gains nationwide, with Seattle up 10.4 percent and Portland 10.1 percent.
“With the S&P CoreLogic Case-Shiller National Home Price Index rising at about a 5.5 percent annual rate over the last two-and-a-half years and having reached a new all-time high recently, one can argue that housing has recovered from the boom-bust cycle that began a dozen years ago,” said David M. Blitzer, managing director at S&P Dow Jones Indices.
He said the new Trump administration promises higher economic growth that could increase the demand for housing, but cautioned that “home prices are are already rising about twice as fast as inflation.”
Zillow‘s chief economist, Dr. Svenja Gudell, said housing prices are rising faster than rents, which could eventually cool demand.
“National home prices continue to grow at a rapid clip, largely driven upward by the now-familiar forces of high demand from home buyers and limited supply of homes available for sale,” she said. “But even as the pace of home value growth keeps rising, growth in rents is flattening out and stabilizing, which — combined with a series of other factors — will likely begin impacting the for-sale market sooner or later.”
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