18 Jun San Diego home prices rise in May
San Diego home prices continue to rise – increasing 6.2 percent in May, but fell slightly from the first three months of the year, according to the S&P Case-Shiller Home Price Index.
The median prices of homes for sale in San Diego County fell from 6.4 percent in February and 6.9 percent in January, behind Los Angeles and Orange counties. Statewide, California home prices beat national averages, rising 5.2 percent in the 12 months ending in March as home prices continue to improve due to an improved labor market and lower unemployment, mortgage rates and limited home supply drives prices up.
Although home appreciation fell slightly in May, San Diego real estate experts believe it is a good thing for the market. Slower appreciation in the 3.5 percent to 5 percent range are more sustainable. Some experts fear affordability may also dampen sales figures, as more first-time homebuyers struggle to come up with down payment, afford and buy properties in the area.
Overall, prices in the 20 cities the survey tracks have climbed.
In April, CoreLogic reported the median home price in San Diego County homes for sale was $489,00 and were driven by affordability and limited supply. San Diego real estate has roared back from pre-recession levels, but have not quite hit the peak of $575,000 in November 2005.