The latest S&P CoreLogic Case-Shiller Index reveals that from April 2017 to April 2018, home prices throughout San Diego County increased an average of 7.8%. This is great news both for sellers and for buyers looking to invest.
In all, the Index included data for 20 cities. Housing prices are increasing across the country, with the average gain being 6.4%. While San Diego’s housing price increase beat that nationwide average, five other cities saw a bigger jump.
The highest increase was 13.1% in Seattle, demonstrating that high demand and low availability is a pattern which is affecting the entire West Coast, not just Southern California. The 7.8% increase in San Diego looks practically modest by comparison.
Indeed, traveling up the coast, prices go from high to higher. Los Angeles beat out San Diego with an 8.3% increase. San Francisco beat that with a gain of 10.9%.
Other cities which ranked high on the Index included Las Vegas (12.7%), and Denver (8.6%). Immediately following San Diego were Detroit, Tampa, Boston, and Phoenix. The lowest increases were in Washington D.C. (3.2%) and Chicago (3%).
What can we expect over the months ahead? As it stands, construction costs for affordable housing are too high for many developers to take on projects outside the luxury sector. Policy changes (including rent controls) are up for consideration, but over the summer months, demand is expected to continue to rise while supply remains highly restricted.