San Diego home prices rose just over 1% in March, the third positive month after a half-year downward trend, according to the authoritative Case-Shiller Index released Tuesday.
Prices rose 1.05%, compared to 1.12% in February and 0.11% in January after declining throughout the second half of 2024.
Nationwide prices were up 0.76% in March, with Seattle and Los Angeles showing the strongest growth on the West Coast at 1.78% and 1.48%, respectively.
Nicholas Godec of S&P Dow Jones Indices said buyers are being put off by high mortgage rates, but limited inventory keeps prices from declining. He noted that many homeowners are reluctant to sell and give up low pandemic-era mortgages.
“This spring’s price resurgence illustrated that seasonal demand and tight supply could reignite price growth, but it also underscored the housing market’s continued sensitivity to mortgage rates and affordability constraints,” Godec said.
“Even as year-over-year gains slowed, U.S. home prices remained at record highs, ensuring long-term homeowners retained substantial equity,” he added.
The online real estate service Zillow said Tuesday it expects “a modest recovery in sales over the coming year,” especially if prices fall slightly.
