San Diego Home Price Gains
The latest Dow Jones case Shiller report shows that home prices on average are up for five straight months in a row.
The S&P Core Logic Case-Shiller 20-City Composite Home Price NSA Index seeks to measures the value of residential real estate in 20 major U.S. metropolitan areas: Atlanta, Boston, Charlotte, Chicago, Cleveland, Dallas, Denver, Detroit, Las Vegas, Los Angeles, Miami, Minneapolis, New York, Phoenix, Portland, San Diego, San Francisco, Seattle, Tampa and Washington, D.C.
San Diego Home Price Gains
The S&P CoreLogic Case – Shiller U.S. National Home Price NSA Index, covering all nine U.S. census divisions, reported a 5.5% annual gain in April, down from  5.6% in March.
The 10 – City Composite annual increase came in at 4.9%, down from 5.2% the previous month. The 20 – City Composite posted a 5.7% year – over year gain, down from 5.9% in March.
Seattle, Portland, and Dallas reported the highest year –over – year gains among the 20 cities. In April, Seattle led the way with a 12.9% year – over -year price increase, followed by Portland with 9.3%, and Dallas with an 8.4% increase. Seven cities reported greater price increases in the year ending April 2017 versus the year ending March 2017.
Here in San Diego, this report showed a 6.6% year-over-year average home appreciation. The April over March San Diego home price appreciation was 0.9%. San Diego housing demand is still outstripping our housing supply. It is this simple economic principle that is the main ingredient with the continuation of our rising home prices.
Plus, millennials are slowly entering into home ownership, and the US labor market seems to be doing very well with rising wages. These factors are also driving housing demand. Combine all this with extremely low mortgage rates (even though they have been increasing this year) and you should be very glad that you’re a San Diego homeowner! Unfortunately, all these factors combined to make first-time buyers find a suitable home here in San Diego very difficult.
The majority of first-time San Diego residential home buyers that I worked with are receiving help with the down payment
In today’s San Diego home sellers’ market place, home buyers should remain patient and be ready to move quickly once that perfect home does become available. It is imperative for all San Diego buyers to get preapproved for their mortgage prior to starting their search for the perfect home. It used to be that of prequalification was sufficient to have your offer seriously considered by home seller. But in today’s market here in San Diego if you want to get an excellent buy, or for that matter even have your offer seriously considered, you should have a preapproval ready to be submitted with your offer to purchase. Yes, having all your ducks in a row is not an option in today’s real estate market . . . but a requirement!
HOME PRICE ANALYSIS:
“As home prices continue rising faster than inflation, two questions are being asked: why? And, could this be a bubble?†says David M. Blitzer Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices. “Since demand is exceeding supply and financing is available, there is nothing right now to keep prices from going up. The increase in real, or inflation-adjusted, home prices in the
last three years shows that demand is rising. At the same time, the supply of homes for sale has barely kept pace with demand and the inventory of new or existing homes for sale shrunk down to only a four-month supply.
Click Here if you would like view the entire Case-Shiller report.
San Diego Home Price Gains
Seems like the point is being missed.. Its the affordability of the existing homes that is running people out of town. It isn’t just a San Diego problem, it is happening everywhere. What you would call the upcoming “middle class” is clearly being phased out. We, the young middle class, are being shoved into the bottom or ” low class” class realm in some sort of forced socioeconomic progressive agenda – and it’s working . I suspect most upper or older middle- class residents don’t notice until these policies effect their gen X sons and daughters, like the antidotal story at the beginning of this report.
It’s called supply and demand. If you don’t have the money… you can’t buy the house… Move out.
YES!!! people are being dumb/greedy again. Waiting for the pop soon. What happened to houses being homes and not investments?
I don’t live in California anymore but I lived in San José for half of my life. People shouldn’t be robbed blind to pay unrealistic rents. Its a disgrace for middle class and poor people to be taken advantage of. There are single woman out there. elderly. veterans and disabled people who have to make ends meet. Inflated rents and inflated property taxes basically discriminates and neglects poor and middle class people. The reason why the economy is so bad is because to many people are paying high rents and don’t have much to spend on the economy. High rent inflation and high property taxes hurts the economy. If anybody is wondering why so many stores are closing nationwide its because if the middle class and poor people are being pimped out of most of their paychecks then businesses are going to suffer more. and if the poor and middle class don’t do well that means the rich certainly don’t do well and will end up in the bread lines with us. when it cones time to vote for local city officials whom aid and abet high rents and high property taxes then people need to vote them out.