Home prices in San Diego rose slightly in January to start the new year, but year-over-year growth remained below the national average, according to the authoritative Case-Shiller Index.
The index released on Tuesday showed growth of just 0.14%. This follows six months of decline.
The Case-Shiller report for December showed a 0.6% increase, but that has since been revised down to a 0.03% decline.
Year-over-year the increase in local home valuations was 3.39% versus the national average of 4.08%.
“Home price growth continued to moderate in January, reflecting a clear two-part story across the past year,” said Nicholas Godec of S&P Dow Jones Indices, noting that most of the appreciation over the past 12 months was in the first half of 2024.
“Rising mortgage rates throughout the year elevated monthly payment burdens, which, combined with already high home prices, pushed affordability to multi-decade lows in many regions,” he said. “This likely contributed to subdued activity in the back half of the year, with both buyers and sellers exercising caution.”
Godec said residential real estate remains a valuable long-term asset, but the current cycle “highlights how sensitive home prices are to changes in financing conditions and buyer affordability.”
