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San Diego Sees Largest Drop in Housing Prices Since The Great Recession

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Home prices in San Diego are still steadily declining, with the biggest drop since the Great Recession last month.

San Diego home prices fell 2.5% from July to August. The San Diego metropolitan area, which includes San Diego County, has not seen such a decline since July 2008. San Diego Union Tribune report.

San Diego is known for its extremely high housing costs. california house prices You are not alone. The overall real estate market across the country is slowing as mortgage rates rise.

San Diego posted its biggest monthly decline in over a decade in August, while San Francisco posted the biggest monthly decline of 3.7%, followed closely by Seattle at 2.9%.

S&P Case-Shiller Index. Image credit: S&P Global.

In general, the West Coast housing market has seen the steepest declines. home buyer Look elsewhere in the country for more affordable options.

However, housing prices are still rising. Home prices are rising 12.7% annually in the San Diego metropolitan area, making him the eighth-highest in the S&P Case-Shiller Index released Tuesday. San Diego is also still more expensive than some markets where housing prices are rising.

Housing costs are falling, but that doesn’t necessarily mean housing is becoming more affordable. Because interest rates are rising, so are mortgage rates. Higher mortgage interest rates mean higher monthly payments, making housing out of reach for many.

August home prices are still up 13% year-on-year, but are down 2.6% from July. According to S&P Dow Jones Indices, this is the steepest monthly decline in the history of this particular index.

And affordable housing prices will need to drop even more significantly to make a meaningful difference for San Diego residents. The median single-family home price rose from $670,000 in February 2020 to $900,000 in August.

About the author: Mike Peterson is a freelance journalist and writer based in Northern San Diego County. He has written and worked for many local media outlets including: San Diego Union Tribune, north coast current, oceanside blade, and the Escondido Times – Advocate.

La Jolla property banner image courtesy of Zillow.com.

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