Case-Shiller: Home Prices in San Diego Rise Again After 5 Months of Decline - Times of San Diego
 |
| Fred's Case Shiller Index Plot |
San Diego Home Values Resilient Despite Challenges, Leaving Homeowners at a Crossroads
After weathering five consecutive months of decline, San Diego home prices reversed course in December 2024, posting a modest gain of 0.06% according to the authoritative S&P CoreLogic Case-Shiller Index. This slight uptick marks what many market observers believe could be a pivotal moment for local homeowners contemplating whether to sell in the current market.
San Diego property values closed out 2024 with a 5.5% year-over-year increase, significantly outpacing the national average of 3.9%. For longtime homeowners, the growth represents substantial equity gains, with values now standing 348% higher than the January 2000 baseline.
"I've watched my home's value more than triple since I purchased it in 2003," said Maria Sanchez, a Mission Valley homeowner. "Even with the recent market cooling, my equity position remains strong. It's tempting to consider selling while values are still historically high."
Recent market fluctuations tell a nuanced story. While the December uptick suggests renewed buyer interest, it follows a concerning 2.9% decline during the second half of 2024. This volatility has created uncertainty for homeowners debating their next move.
Local real estate experts suggest the answer to "sell or hold" depends largely on individual circumstances.
"For homeowners planning to stay in San Diego long-term, riding out market fluctuations typically makes sense," notes real estate analyst Michael Torres. "However, those looking to downsize or relocate to less expensive regions might consider this a strategic time to capitalize on still-elevated values, especially with indications of a potentially less competitive market ahead."
Zillow's projections support a wait-and-see approach for those not in urgent need to sell, with Chief Economist Kara Ng forecasting "cooler home price appreciation" ahead, potentially offering buyers more leverage in future negotiations.
For San Diego homeowners, the December price increase represents a welcome sign of market resilience, even as longer-term trends suggest the explosive growth witnessed after 2020 may be moderating toward more sustainable levels.
Case-Shiller: Home Prices in San Diego Rise Again After 5 Months of Decline - Times of San Diego
Home prices in San Diego rose slightly in December after five months of decline, according to the authoritative Case-Shiller Index released Tuesday.
The increase was small — just 0.06% — but it came amid indications that the nationwide slowdown in home price appreciation is over.
“Home prices stalled during the second half of the year with markets in the West dropping the fastest,” said Brian Luke of S&P Dow Jones Indices. “Previous strongholds like San Diego and Tampa experienced declines of 2.9% and 2.7%, respectively, during the second half of the year.
With December’s uptick, San Diego home prices ended the year 5.5% higher, versus the national average of 3.9%.
“The S&P CoreLogic Case-Shiller Index continues to highlight the upward trend of home prices nationally,” Luke said. “Through this recent market cycle, the ability of Americans to grow wealth by participating in the upside of the U.S. housing market, particularly if done through a leveraged position by securing a mortgage, has proven to be historically beneficial.
Despite the end-of-year improvement, Zillow cautioned that home price increases are likely to be moderate in 2026.
“Buyers should see cooler home price appreciation and a less competitive environment this spring,” said Zillow’s Chief Economist Kara Ng.
Comments
Post a Comment