San Diego Housing Market Cools

San Diego home prices, which has been among the leaders for municipal markets around the nation, showed recent evidence of cooling, according to a new report.

While home prices are still on a tear, they are showing slightly down; The most recent S&P CoreLogic Case Shiller 20-city home price index climbed 19.1% in September from a year earlier. The strong price gains marked a deceleration from August's 19.6% year-over-year increase. Still, September prices in all 20 cities set new records.

Cities spiking the highest were Phoenix, Tampa, Florida, and Miami, trailed in the fifth spot by San Diego. Prices in Phoenix rose 33.1% year over year, with San Diego still boasting a healthy 25.0%, nearly 6% above the 20-city average.

City, 1-Year Change (in percentage)

Phoenix, 33.1

Tampa, 27.7

Miami, 25.2

Dallas, 25

San Diego, 25

Las Vegas, 24.7

Seattle, 23.3

Charlotte, 22.4

Atlanta, 21.2

Denver, 21.2

San Francisco, 19.8

Los Angeles, 18.3

National, 19.5

"Home price growth in San Diego, which has been trending near the top of the 20-city list since the onset of the pandemic, slowed to a 25% annual increase, bumping it down to the fifth place for strongest home-price growth," the report said.

The housing market has been strong, thanks to rock-bottom mortgage rates, a limited supply of homes on the market and pent-up demand from consumers locked in last year by the pandemic.

“Most indicators suggest prices have continued to edge higher, albeit at a slightly slower pace, amid tight supply conditions and the structural shift in demand towards single-family, suburban homes induced by the pandemic," Contingent Macro Advisors stated in said research report.