Case-Shiller: San Diego Home Prices Rose 7.8% Over Past Year

A home for sale in Del Mar in May. Photo by Chris Jennewein

San Diego, Las Vegas and Seattle have experienced the biggest increases in home prices over the past year, with San Diego seeing a 7.8 percent jump.

The widely followed Case-Shiller Index released Tuesday showed Seattle leading the way in August with a 13.2 percent year-over-year price increase, followed by Las Vegas with an 8.6 percent increase and then San Diego. The national average was 6.1 percent.

In August alone, prices in San Diego increased by almost a full percentage point — 0.9 percent versus a national average of 0.5 percent.

“Home price increases appear to be unstoppable,” says David M. Blitzer, managing director at S&P Dow Jones Indices. “Most prices across the rest of the economy are barely moving compared to housing.”

“Home prices will not rise forever. Measures of affordability are beginning to slide, indicating that the pool of buyers is shrinking,” he added.

However, the online real estate service Zillow saw a bright spot in the continuing increase in home ownership.

“Housing costs are rising, competition among buyers is fierce and the number of homes actually available to buy is at historic lows – and still, the U.S. homeownership rate is on the rise, climbing for the second straight quarter to its highest level since 2014 and proving American home buyers are nothing if not tenacious and resourceful,” said Dr. Svenja Gudell, Zillow’s chief economist.