San Diego home prices rose by 1 percent in May, bucking a nationwide trend of slowing growth, according to the authoritative Case-Shiller report released Tuesday.
The May increase follows a rise of 0.5 percent in April. For the nation as a whole, prices rose 0.8 percent in May, down from a 0.9 percent uptick in April.
Prior to February, local home prices had declined for six straight months, and as a result are up only 1.3 percent for the past 12 months.
“Nationally, year-over-year home price gains were lower in May than in April, but not dramatically so
and a broad-based moderation continued,” says Philip Murphy, managing director at S&P Dow Jones Indices.
The biggest increases in May were Minneapolis at 1.7 percent and Cleveland at 1.4 percent. San Francisco, which has long been a price leader, showed only 0.3 percent growth.
“The U.S. housing market cool down continued in May, signaling the longest period of price growth anemia since the Great Recession,” said Dr. Ralph B. McLaughlin, deputy chief economist for CoreLogic. “However, coupled with the recent drop in mortgage rates and incomes rising faster than inflation, the transition to a more balanced market should allow the industry to enter a period of sustainability into the foreseeable future.”
The S&P CoreLogic Case-Shiller U.S. National Home Price Index is considered the most authoritative measure of U.S. housing prices and is widely followed by realtors.
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