What’s Ahead For San Diego Housing Prices In 2016
Latest Case-Shiller housing report shows home prices were up this year
Tuesday, December 29, 2015
Dana Kuhn, real estate lecturer, San Diego State University
Gary London, real estate economist, London Group Realty Advisors
San Diego home prices slipped slighting in the fall, but they're still up from last year.
Home prices in San Diego dipped 0.3 percent in October from the month before, and rose 6.2 percent over October 2014, according to the Standard & Poor's Case-Shiller Home Price Index released Tuesday.
Case-Shiller created its indices by taking home prices in 20 large cities in January 2000, assigning them a value of 100, and tracking their subsequent rise and fall.
San Diego's index stood at 215.75 in October — meaning that home values more than doubled over almost 16 years. The increase is the third fastest in the U.S., behind Los Angeles and San Francisco.
The composite 20-city index was at 182.83 in October, up 0.1 percent for the month and 5.5 percent higher since October 2014.
"Generally good economic conditions continue to support gains in home prices," said David Blitzer, managing director and chairman of the Index Committee at S&P Dow Jones Indices.
"Among the positive factors are consumers' expectations of low inflation and further economic growth, as well as recent increases in residential construction, including single-family housing starts," Blitzer said.
He said the recent hike in the federal funds rate by the Federal Reserve probably won't lead to "runaway mortgage interest rates" for those contemplating buying a home.
Despite Blitzer's optimism, a recent survey by the real estate website Zillow shows a handful of experts believe San Diego's housing market is experiencing a bubble.
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