Home prices in San Diego rose 2.9% in May and a record 24.7% over the past year, according to the widely followed Case-Shiller Index released Tuesday.
“Housing price growth set a record for the second consecutive month in May,” said Craig J. Lazzara, managing director at S&P Dow Jones Indices.
“A month ago, I described April’s performance as ‘truly extraordinary,’ and this month I find myself running out of superlatives,” he said.
Phoenix, San Diego, and Seattle reported the highest year-over-year gains among the largest metropolitan areas. Phoenix was first with a 25.9% increase, followed by San Diego and then Seattle at 23.4%.
Lazzara said the strength in the national housing market “is being driven in part by
reaction to the COVID pandemic, as potential buyers move from urban apartments to suburban homes,” but could indicate a long-term change in housing preferences.
Zillow Economist Matthew Speakman said that despite the rapidly rising prices more homes are coming on the market and demand remains firm.
“Bidding wars persist and the still-relatively few homes available for sales continue to fly off the shelves at a historically fast pace,” he said.