San Diego County home-price index is nearing its 2005 peak, according to the S&P CoreLogic Case-Shiller Home Price Index.
The S&P CoreLogic Case-Shiller Home Price Index said Seattle came in first with a 12.7 percent, year-over-year increase in October, the last month for which the index was generated.
Las Vegas ranked second at 10.2 percent.
The index, set at 100 for January 2000 for all areas, measures pairs of prices for the same home over time.
San Diego’s index stood at 246.66, just 3.68 points or 1.5 percent below the all-time peak set in November 2005.
Nationally, the index is 6 percent ahead of the 2006 peak and 20-city and 10-city composite indices, which include San Diego, still remain slightly below their respective peaks.
San Diego’s median home prices have already reached record territory, not counting inflation. They stood at $529,750 in October, according to CoreLogic. The November median is due later this week.
“Home prices continue their climb, supported by low inventories and increasing sales,” said David Blitzer, S&P’s index managing director.
He said national prices were up 6.2 percent in the 12 months ending in October, three times the inflation rate.
Inventories of homes for sale stood at only 3.4 months’ supply in November, when six to eight months is considered ideal in keeping supply and demand in balance.
Blitzer said some areas are seeing prices race ahead of wages, salaries and inflation and are prompting would-be buyers to rent instead.
He cited the Urban Institute’s study of 33 metro areas, which showed San Diego ranking fourth in the “rental gap” between what it costs to buy versus rent the median-price home.
For San Diego households, the cost to own required 47 percent of household income versus 40 percent to rent. The highest was San Francisco, followed by San Jose and Seattle.
The lowest was Miami at 35.5 percent to own and 42.5 percent to rent, followed by Detroit and Chicago.
The S&P index also calculates seasonally adjusted changes month over month.
For San Diego, the September-October change was 0.7 percent up on a seasonally-adjusted basis. That was the same change for the national and two composite indices.
On an unadjusted basis, San Diego was unchanged from September to October, while the national and composites were up 0.2 percent.
San Diego Union-Tribune