The blistering rise in San Diego home values slowed in May, but the increase still totaled over 7 percent for the past year, according to the authoritative Case-Shiller index released Tuesday morning.
Local prices for single-family homes rose 0.6 percent in May, down from 0.9 percent in April and below the national average of 1.1 percent. But the rise over the past 12 months was 7.3 percent, above the national average of 6.4 percent.
Seattle led the nation with a 2.2 percent increase in May and double-digit 13.6 percent for the past year.
“Home prices continue to rack up gains two to three times greater than the inflation rate,” says David M. Blitzer, managing director at S&P Dow Jones Indices. “The year-over-year increases in the S&P CoreLogic Case-Shiller National Index have topped 5 peercent percent every month since August 2016.”
While prices continue to rise, fewer homes are being sold as buyers are apparently being priced out of the market.
“Sales of existing single family homes … peaked last November and have declined for three months in a row,” Blitzer noted. “The number of pending home sales is drifting
lower as is the number of existing homes for sale. Sales of new homes are also down and housing starts are flattening.”
In San Diego, local companies have complained that the high cost of housing makes it difficult to recruit and keep talented employees.
“The increasing cost of housing in San Diego is making it more and more difficult for the region’s workforce to find homes that suit their needs,” said Sean Karafin, vice president of public policy and economic research at the San Diego Regional Chamber of Commerce. “High housing costs also become a barrier for those who might consider moving to San Diego for work, creating further challenges for employers that would like to expand or even just stay in San Diego.”