Home sold in Encinitas
A newly sold home in Encinitas. REUTERS/Mike Blake

Home prices in San Diego posted the biggest increase of any large city in January according to the latest figures released Tuesday for the authoritative Case-Shiller Index.

The price of a home in San Diego County rose 2.5% in January, and was up 27.5% over the past 12 months. The increase in December was 1.8% — the second highest in the nation.

Over the past 12 months, only Dallas, Miami, Phoenix and Tampa have seen greater home price appreciation.

“Home price changes in January 2022 continued the strength we had observed for much of the prior year,” said Craig J. Lazzara, managing director at S&P Dow Jones Indices, which produces the monthly index.

“Last fall we observed that home prices, although continuing to rise quite sharply, had begun to decelerate. Even that modest deceleration was on pause in January,” he said.

The national average over the past 12 months was 19.2% — the fourth-largest reading in the index’s 35-year-history.

Lazzara said home prices could soon be affected by rising inflation, which has prompted the Federal Reserve to increase interest rates.

“We may soon begin to see the impact of increasing mortgage rates on home prices,” he said.

Chris Jennewein

Chris Jennewein is Editor & Publisher of Times of San Diego.