San Diego continued to decline in the ranking of the hottest real estate markets in the nation in October.
The S&P CoreLogic Case-Shiller Indices reported this week that the San Diego metropolitan area saw a 24.2 percent increase in home prices in one year, making it the sixth fastest growing market in the index of 20. cities.
San Diego was in the top two markets in the low index for most of 2021.
Prices nationwide showed signs of cooling after posting record gains during the pandemic, so the San Diego metropolitan area (which includes all of San Diego County) wasn’t the only one showing a slight slowdown.
Median home prices in the United States continued to climb 19.1 percent in one year.
Phoenix was the most important market, increasing 32.3 percent in one year. They were followed by Tampa, with an increase of 28.1 percent and Miami, with a 25.7 percent.
Selma Hepp, an economist at CoreLogic, wrote in her analysis that in high-priced markets like San Diego, home buyers may have less room for maneuver in budgets as prices continue to rise.
However, he wrote that the limited supply of homes across the United States still means determined buyers will keep pushing prices higher.
“This suggests that 2022 will be another year of strong house price growth, averaging 7 percent for the year, which is slower than 2021, but still above the average 5 percent increase seen between 2010. and 2020, “he wrote.
The number of homes for sale in San Diego County continued to decline. There were about 3,700 homes for sale in October, according to Redfin Data Center, down from more than 5,000 at the same time in 2020.
Inventory continued to fall in the winter, suggesting increased competition could push San Diego back to the top of Case-Shiller’s rankings.
The Case-Shiller indices don’t just look at median home prices. They take into account repeat sales of identical single-family homes — and adjust seasonally — as the years go by. The median price for a single-family resale home in San Diego County in October was $ 830,000.
Kwame Donaldson, a senior economist at Zillow, wrote that low unemployment, strong wage growth, and the age of workers millennials Growing up to become homeowners would continue to push up prices.
“House price appreciation will continue to slow from unsustainable levels this summer, but these conditions ensure that growth will comfortably exceed normal rates over the next year,” he wrote.
Donaldson said prices across the country have been driven by tight supply, rising savings and low mortgage rates.
The interest rate on a 30-year fixed-rate mortgage was 3.07 percent in October, Freddie Mac reported, compared with 2.83 percent the previous year. The rate is also above the December average of 2.68 percent, which was the lowest in records dating back to 1971.
Among all California metropolitan areas, San Diego continues to have the fastest home price appreciation, and has been since July 2019. In October, both Los Angeles and San Francisco saw price increases of 18.5 percent.
The cities with the slowest price increases, still well above historical norms, were Washington, DC (up 12 percent) and Chicago and Minneapolis (both up 11.5 percent).
“We continue to see strong growth in cities. All 20 cities saw price increases in the year ending October 2021, “wrote Craig J. Lazzara, managing director and global head of investment indices, S&P Dow Jones Indices.
Lazzara wrote that 19 of the cities in the index were in the top quintile of historical experience. However, he noted that 14 of the 20 cities in October had slowed from the previous month.
A recent report released by the Greater San Diego Association of Realtors suggested that San Diego would remain a hot spot for real estate in 2022.
Using data from the Apartment List, he said that San Diego remains a sought-after location with 43.5 percent of renters considering moving here.
–
