The authoritative Case-Shiller home price index released Tuesday showed San Diego prices falling for the fourth month in a row in September.
Local home prices fell 2.1% compared to a 2.8% decline in August, but are still 9.5% higher than in August 2021.
Prices fell in every major metropolitan area. The national average for all areas was a 1.0% drop compared to 1.1% in the previous month.
“As has been the case for the past several months, our September 2022 report reflects short-term declines and medium-term deceleration in housing prices across the U.S.,” said Craig J. Lazzara, managing director at S&P Dow Jones Indices.
“As the Federal Reserve continues to move interest rates higher, mortgage financing continues to be more expensive and housing becomes less affordable,” he said. “Given the continuing prospects for a challenging macroeconomic environment, home prices may well continue to weaken.”
The online real estate firm Zillow offered some hope, with Senior Economist Nicole Bachaud saying “prices might not continue to plunge down as much as some projections anticipate” because of a shortage of inventory,
While prices are now coming down across the country, year-over-year increases remain considerable in some markets. Homes in Miami have experienced a 24.6% year-over-year price increase, followed by 23.8% in Tampa and 17.8% in Charlotte.