The folks at Case-Shiller are out with their latest home-prices report, and the news is not good for local homeowners.
Prices dipped 2.5% in San Diego in July compared with the month prior, according to the latest figures. No, this does not mean your home will be worthless in 40 months, but it’s still bad, though. The news follows a drop of 0.7% in June. That said, home prices in the county have jumped 16.6% year-over-year, so brick-and-mortar is still a much more solid investment than, say, the Dow, which cratered about 6.7% in roughly the same period.
NBC 7’s Catherine Garcia spoke with a local economist about the current state of San Diego’s housing market
The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index for July of this year, which covers nine U.S. Census divisions, shows the news overall for the country was good, with prices posting a year-to-year gain of 15.8%. That said, the same figure from a month earlier was 18.1%.
Cities with the peak year-over-year gains were Tampa, very near to where Hurricane Ian is bearing down on Wednesday, as well as Dallas and Miami. Tampa is up 31.8%, the report shows, while Miami lags behind by just a 10th of a point, and Dallas popped 24.7% since last July.
However, “All 20 cities [in the composite index] reported lower price increases in the year ending July 2022 versus the year ending June 2022.”
“Although U.S. housing prices remain substantially above their year-ago levels, July’s report reflects a forceful deceleration,” Craig J. Lazzara, managing director at S&P DJI said in a news release issued in tandem with the report, adding, “The theme of strong but decelerating prices was reflected across all 20 cities…. Prices declined in 12 cities on a month-to-month basis.”
Lazzara said that, with additional interest-rate hikes expected, homeowners can expect more of the same: “Given the prospects for a more challenging macroeconomic environment, home prices may well continue to decelerate.”
So how did San Diego rank?
In the 20-City Composite Index, only two cities performed even worse: San Francisco, where prices dipped 3.5%, while things in Seattle weren’t much better, down 3.1%. Overall, the composite dropped 0.8%. Meanwhile, our neighbors to the north did a bit better: L.A. only slipping 1.6% month to month.
And in Vegas? Never bet against the house: Prices were flat.
