San Diego home prices rose 1.7% between September and October amid a nationwide trend that saw buyers move from urban apartments to suburban homes amid the pandemic.
The widely followed S&P CoreLogic Case-Shiller Index released Tuesday showed an 11.6% increase in home prices over the past year. For the second month in a row, San Diego ranked third nationally in year-over-year home price increase, after Phoenix and Seattle.
“Since June, our monthly readings have shown accelerating growth in home prices, and October’s results emphatically emphasize that trend,” said Craig J. Lazzara, managing director at S&P Dow Jones Indices.
“Although the full history of the pandemic’s impact on housing prices is yet to be written, the data from the last several months are consistent with the view that COVID has encouraged potential buyers to move from urban apartments to suburban homes,” he explained.
Nationwide, home prices were up 1.4% month-over-month and 8.4% for the year. Markets in the West and Southwest showed the biggest increases.
CoreLogic Deputy Chief Economist Selma Hepp noted that prices nationwide are now 25% higher than the peak reached in the summer of 2006 before the Great Recession.
“As recent home purchase indicators have suggested, 2021 will start with sustained home price growth, which will likely remain throughout the year,” she predicted. “Also, the robust underlying fundamentals that supported the remarkable housing market in 2020 will continue propping the market over the next year.”