San Diego continues to lead the United States in home price increases, posting a 1.7% gain in February, according to the authoritative Case-Shiller Index released Tuesday.
It was the second monthly increase in a row, and compared with a nationwide average increase of 0.6%. Local prices are 11.4% higher than a year ago, compared to the national average of 6.4%.
“Following last year’s decline, U.S. home prices are at or near all-time highs,” said Brian D. Luke at S&P Dow Jones Indices. “San Diego has been the best performing market following the trough in home prices observed in early 2023.”
Luke noted that prices in four metro areas reached record highs in February — San Diego, Los Angeles, Washington and New York.
San Diego has stayed in the lead even when prices were falling last year because they didn’t drop as much as in other areas.
Zillow‘s Senor Economist Orphe Divounguy said he expects home prices to continue to rise in the next Case-Shiller report.
“Price growth accelerated because housing demand continues to surprise on the upside nationally,” said Divounguy. “Population growth, looser financial conditions, due in part to new stock market highs, as well as the strong labor market helped support housing demand at the start of this year.”
He noted that prices increased most in coastal markets where supply tends to lag, including San Diego, San Jose, San Francisco and Seattle.