County’s 6.9% gain in June bigger than national average
San Diego County home prices in June increased 6.9 percent in a year, faster than the nationwide average but slower than other California cities, the S&P CoreLogic Case-Shiller Indices showed Tuesday.
Of all the regions covered in the 20-city index, San Diego prices increased the eighth most in a year, tied with Tampa, Fla. Las Vegas had the biggest gain at 13 percent.
Nationwide home prices were up 6.2 percent, less than California on the index, including Los Angeles (7.4 percent) and San Francisco (10.7 percent).
San Diego had the second-slowest price increase in the West, behind Portland with a 5.8 percent increase. America’s Finest City spent several months in 2017 at No. 3 on the index, outpacing other California cities and big markets such as Denver, Boston and Atlanta.
“It’s a notable drop,” said Trulia economist Felipe Chacon. “It’s definitely not growing as quickly as these other places now.”
He said San Diego’s home price increases are still high, but wages in the region may explain why prices are going up slower than other California cities.
Chacon said military and health-related service jobs that make up a large portion of San Diego’s workforce have slower wage increases than, for example, technology positions in San Francisco.
David Blitzer, managing director of the index, wrote in the report that although the number of homes for sale in many markets had started to increase — including San Diego — it contrasts with a slowdown in sales.
“Even as home prices keep climbing, we are seeing signs that growth is easing in the housing market,” he wrote. “Sales of both new and existing homes are roughly flat over the last six months.”
There were 6,413 homes listed for sale in San Diego County in June, said the Greater San Diego Association of Realtors. That is up from 5,655 in June last year and 6,190 in June 2016.
At the same time, sales hit a four-year low in June. There were 3,927 home sales in June, down 9.4 percent from the same time last year.
The indices evaluate home prices by more than just price, tracking repeat sales of identical single-family houses as they turn over through the years. Prices are adjusted for seasonal swings. The San Diego median home price in May for a resale single-family home hit a record $630,000 , said CoreLogic.
Local concern over rising prices continues to be a talking point of several business groups. The San Diego Regional Chamber of Commerce issued a statement that said housing costs affect more than just people trying to purchase their first home.
“Homeowners hoping to upgrade as their family grows and their income rises are being priced out of their next home,” wrote Sean Karafin, the group’s vice president of public policy. “In addition, most homeowners would eventually like to see their adult children and grandchildren stay in San Diego, but next generations are being forced to look elsewhere.”
Zillow senior economist Aaron Terrazas wrote in a statement that while there are some signs that the market is cooling, it is mostly at the upper-end of the market, not for first-time buyers.
“The truth is, we aren’t witnessing a rapid shift in market power, but rather a slowly unfolding evolution in which things are changing from extremely competitive for buyers to only somewhat competitive,” he wrote. “Sellers, for now and for the foreseeable future, are still in control in this market.”
Markets with the slowest price increases were still outpacing inflation. Price increases in New York were 3.8 percent, 3.3 percent in Chicago and 2.9 percent in Washington, D.C.
San Diego Union-Tribune