San Diego home prices continue their steady rise, increasing by 1 percent in April, according to the authoritative Case-Shiller report released Tuesday morning.
“Home prices continued their climb with the S&P CoreLogic Case Shiller National Index up 6.4 percent in the past 12 months,” said David M. Blitzer, managing director at S&P Dow Jones Indices. “Cities west of the Rocky Mountains continue to lead price increases with Seattle, Las Vegas and San Francisco ranking 1-2-3 based on price movements in the trailing 12 months.”
Seattle recorded a 13.1 percent year-over-year price increase, followed by Las Vegas at 12.7 percent and San Francisco with a 10.9 percent increase.
San Diego home prices were 7.8 percent higher over the past year. The 1 percent rise in April followed an increase of the same size in March.
“One factor pushing prices up is the continued low supply of homes for sale,” Blitzer said, noting that there is little more than four months supply of homes the current sales rate.
Ruben Gonzalez, chief economist at the real estate firm Keller Williams, predicted continued price increases as home sales rise during the summer months.
“We expect home prices will continue to rise quickly this summer,” Gonzalez said. “Mortgage rates have leveled off at the moment, and we are continuing to see year-over-year declines in inventory levels. As supply continues to be the primary restrictive factor on sales, we expect demand to continue to drive prices up in the range of 6 to 8 percent in the next couple of months.”