San Diego county has marked its place as the sixth fastest-growing real estate market in the 20-city index, seeing a 24.2 percent home price gain in a year.
Data released on Tuesday by the S&P CoreLogic Case-Shiller Indices for October 2021 show that home prices continue to increase across the nation. U.S. average home prices are still up 19.1 percent in a year.
The report is the fourth-highest reading in the 34 years covered by their data. Managing Director at S&P DJI, Craig J. Lazzara said the U.S. home prices moved “substantially higher but at a decelerating rate”.
In October, Phoenix, Tampa, and Miami had the highest year-over-year gains among the 20 cities. Phoenix paved the way with a 32.2 percent year-over-year price increase. Tampa followed with a 28.1 percent increase and Miami showed a 25.7 percent increase.
“Phoenix’s 32.3 % increase led all cities for the 29th consecutive month. Tampa (+28.1%) and Miami (+25.7%) continued in second and third place in October, narrowly edging out Las Vegas, Dallas, and San Diego. Prices were strongest in the South and Southeast (both +24.4%), but every region continued to log double-digit gains,” Lazzara said
Since the onset of the pandemic, home price growth in San Diego has been trending near the top 20-city list, according to an analysis by CoreLogic deputy chief economist Selma Hepp. San Diego’s slowed 24.2 percent annual increase bumped it down to the 6th place for strongest home price growth.
Six of the 20 cities reported higher price increases in the year ending October 2021 versus the year ending September 2021. San Diego’s month-over-month increase in October was at 1.1 percent, which was above the U.S. National Index of 0.8 percent at the time.
The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, which covers all nine U.S. census divisions, reported 10- and 20-city composites year-over-year increases of 17.1 percent and 18.4 percent, respectively.
“We continue to see very strong growth at the city level. All 20 cities saw price increases in the year ended October 2021. October’s increase ranked in the top quintile of historical experience for 19 cities, and in the top decile for 17 of them. As was the case last month, however, in 14 of 20 cities, prices decelerated – i.e., increased by less in October than they had done in September,” Lazzara said.
As the year 2021 comes to a close, home market indicators such as S&P CoreLogic Case-Shiller Index, suggest the housing market will see another strong year in 2020, according to Hepp.
“While the expected slowing of home price growth suggests overall annual appreciation in 2022 will fall shorter than that of 2021, the annual average of 7percent is still higher than the average 5% seen between 2010 and 2020. Similarly, sales activity is likely to perk up as homeowners start moving again and more homes are built, bringing the projected total home sales to over 7 million — the highest level since 2006,” Hepp said.
