Home prices in the San Diego metropolitan area declined for the third straight month in October, according to the respected Case-Shiller report released Wednesday.
Prices were down 0.1 percent in October following a 0.4 percent decline in September and 0.5 percent fall in August, but remain 3.8 percent higher for the past 12 months.
Nationwide, prices rose 0.1 percent in October, but other West Coast cities, including San Francisco, Portland and Seattle experienced declines.
“Reduced affordability is slowing sales of both new and existing single-family homes,” said David M. Blitzer, managing director of S&P Dow Jones Indices.
“Sales peaked in November 2017 and have drifted down since then.”
The online real estate site Zillow said the decline in home price appreciation could be an opportunity for some buyers.
“Slowing home price appreciation can be read by many as an ominous sign — a kind of canary in the coal mine — for a more general downturn to come, but it’s not necessarily an indicator that the sky is falling,” said Zillow Senior Economist Aaron Terrazas. “In fact, this slowdown could turn out to be more of a present for the market than a penalty.”
“For the time being, this slowdown represents a return to fundamentals more than anything else, and to more balance between buyers and sellers,” he said.