Home prices in San Diego declined again in December, but the metro area led the top 20 U.S. cities in appreciation last year, according to the authoritative Case Shiller Index released Tuesday.
Prices fell 0.8% in December, 0.4% in November and 0.1% in October, but remained 8.8% higher than in December 2022.
“San Diego reported the highest year-over-year gain among the 20 cities with an 8.8% increase in December, followed by Los Angeles and Detroit, each with an 8.3% increase,” according to the report.
Brian D. Luke of S&P Dow Jones Indices blamed the recent trend of falling prices on increased borrowing costs.
“Increased financing costs appeared to precipitate home price declines in the fourth quarter, as 15 markets saw lower values compared to September,” he said.
The San Diego figures compared to an average 0.4% decline nationwide in December and an average 5.5% increase for the entire year.
Luke said that 2023 proved to be an exceptional year for the nation’s housing market.
“Looking back at the year, 2023 appears to have exceeded average annual home price gains over the past 35 years,” he said.
