According to an October 29th report in the Standard & Poor’s (S&P) Case-Shiller Home Price Index verified that from the months July to August prices in San Diego real estate continue to increase to 1.8 percent.
Even though the rise in price is evident, this percentage is down two percent from between June and July, as well as 2.8 percent from between May and June according to the San Diego Union-Times.
In the last calendar year, San Diego real estate has risen to its highest in more than eight years. The price tag on San Diego real estate between the August 2012 and 2013 increased to 21.5 percent, only behind three cities according to the Case-Shiller 20-city index. San Diego real estate ranked above the national average of a 12.8 percent rise.
According to Mark Goldman, a loan officer and real-estate lecturer at San Diego State University interviewed by the Union-Times, he states that the rise of prices in San Diego real estate even though 30-year the fixed mortgage increased 4.58 percent. Goldman still feels three percent growth will happen in a long-term fashion in the years to come.
“As the economy improves of course we’ll see housing prices continue to go up, but I’m not anticipating any rapid increases in the near future,” Goldman said. “We’re returning to the mean.”
San Diego housing listings are at more of a shortage, which will continue to force the prices to increase. With the qualification restrictions as well as the rise in interest rates, San Diego real estate seekers will only purchase reasonably priced homes. David Blitzer, Chairmen of the foresaid Index committee said in a release that the real estate has already reached its peak in rising in April.
“Since (April), home prices continued to rise, but a t a slower pace each month,” Blitzer said in the release. “This month 16 cities reported smaller gains in August compared to July. Recent increases in mortgage rates and fewer mortgage applications are two factors in these shifts.”
Las Vegas posted the highest increase, while San Francisco and Los Angeles respectively priced higher than San Diego real estate. According to DataQuick the median housing price was $422,000 which was 20.6 percent higher than 2012 in September.