San Diego home prices rose in February after eight months of decline, but remain below last year’s level, according to the authoritative Case-Shiller Index released Tuesday.
The index showed a 1.5% rise in local home values, compared to a 0.3% decline in January, but prices remain 4.1% below the level reached a year ago.
The February increase in San Diego was the highest among large U.S. metropolitan areas, followed by Los Angeles and San Francisco with a 1.0% increase each, suggesting prices are beginning to recover along the West Coast.
“Most cities’ February results showed improvement relative to their January counterparts,” said Craig J. Lazzara, managing director at S&P Dow Jones Indices. “The national composite, which had declined for seven consecutive months, rose a modest 0.2% in February.”
But he cautioned that February’s results “pre-date the disruptions in the commercial banking industry which began in early March” and mortgage financing could become more difficult for buyers.
Zillow Senior Economist Nicole Bachaud said the latest Case-Shiller figures suggest “the normality of the spring home shopping season is returning,” though low inventory “is creating more competition on fewer homes.” She also warned of the prospect of “volatile mortgage rates.”
