San Diego is the only metro area in the nation with 12 months of consecutive home price increases, according to the latest Standard & Poor’s/Case-Shiller Home Price Index released Tuesday.
San Diego housing prices rose 11.7 percent in April compared to a year ago. That’s the second fastest rate of annual increase behind only San Francisco, which saw home prices rise 18 percent, said the widely watched index of housing prices. On a monthly basis, prices in San Diego increased 0.7 percent from March to April.
Prices in the 20 metro areas that the index tracks increased 0.8 percent from March to April, and were up 3.8 percent compared to a year ago.
While the numbers seem to be improving, economists say it is too early to celebrate.
“Many of the gains are modest and somewhat concentrated in California. Moreover, nine of the 20 cities reached new lows at some time since the beginning of this year,” said David M. Blitzer, chairman of the Index Committee at Standard & Poor’s.
The end to the federal first-time homebuyer credit is likely to mean sales will slump in May and beyond, Blitzer said. “Recently released data for May 2010 show sharp declines in existing and new home sales and housing starts. Inventory data and foreclosure activity have not shown any signs of improvement. Consistent and sustained boosts to economic growth from housing may have to wait to next year,” he said.
Kelly Cunningham, an economist with National University System’s Institute for Policy Research, said the conventional wisdom has been that because San Diego entered the housing market spiral first, that the region would be among the first to show signs of improvement.
He’s not convinced that is the case, however.
“If it was a normal cycle, that would makes sense,” he said. “But this is not a normal cycle with all the mortgage problems and the housing collapse.”
San Diego housing prices rose 11.7 percent in April compared to a year ago. That’s the second fastest rate of annual increase behind only San Francisco, which saw home prices rise 18 percent, said the widely watched index of housing prices. On a monthly basis, prices in San Diego increased 0.7 percent from March to April.
Prices in the 20 metro areas that the index tracks increased 0.8 percent from March to April, and were up 3.8 percent compared to a year ago.
While the numbers seem to be improving, economists say it is too early to celebrate.
“Many of the gains are modest and somewhat concentrated in California. Moreover, nine of the 20 cities reached new lows at some time since the beginning of this year,” said David M. Blitzer, chairman of the Index Committee at Standard & Poor’s.
The end to the federal first-time homebuyer credit is likely to mean sales will slump in May and beyond, Blitzer said. “Recently released data for May 2010 show sharp declines in existing and new home sales and housing starts. Inventory data and foreclosure activity have not shown any signs of improvement. Consistent and sustained boosts to economic growth from housing may have to wait to next year,” he said.
Kelly Cunningham, an economist with National University System’s Institute for Policy Research, said the conventional wisdom has been that because San Diego entered the housing market spiral first, that the region would be among the first to show signs of improvement.
He’s not convinced that is the case, however.
“If it was a normal cycle, that would makes sense,” he said. “But this is not a normal cycle with all the mortgage problems and the housing collapse.”
RSS Feed