San Diego home prices continued their downward trend in November, declining by 1.7% for the sixth straight monthly pullback, according to the authoritative Case-Shiller Index released Tuesday.
Local home prices fell 0.7% October, 2.1% in September, 2.8% in August, 2.6% in July and 0.7% in June after rising steadily during the pandemic.
Despite the recent declines, however, San Diego home prices remain 4.8% higher than a year ago.
“These declines, of course, came after very strong price increases in late 2021 and the first half of 2022,” noted Craig J. Lazzara, managing director at S&P Dow Jones Indices.
Each of the 20 largest metropolitan areas in the Case-Shiller Index experienced home price declines in November. The average drop nationwide was 0.6% .
“As the Federal Reserve moves interest rates higher, mortgage financing continues to be a headwind for home prices,” said Lazzara. “Economic weakness, including the possibility of a recession, would also constrain potential buyers.”
“Given these prospects for a challenging macroeconomic environment, home prices may well continue to weaken,” he added.
Nicole Bachaud, senior economist for the online real estate service Zillow, said the national housing market has “slowed from a sprint to a crawl” due to overall economic trends.
“As rates have come down in the first weeks of the new year, housing market activity has started to thaw out, but 2023 will likely still be a relatively tamer year for housing with many expecting prices to flatline at best,” she said.