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By Chris Jennewein, Times of San Diego, a member of the San Diego Online News Association
Photo: a home for sale in Del Mar in July. Photo by Chris Jennewein
April 28, 2021 (San Diego) - San Diego lead the nation in home price increases as the pandemic peaked in mid winter, with a whopping 2.9% jump between January and February, according to the widely-followed Case-Shiller Index released Tuesday.
Over the past 12 months, home prices increased 17.0% in the single-county San Diego metropolitan area — the second highest in the nation after the two-county Phoenix metro area.
“Phoenix’s 17.4% increase led all cities for the 21st consecutive month, with San Diego and Seattle close behind,” said Craig J. Lazzara, managing director at S&P Dow Jones Indices. “Although prices were strongest in the West and Southwest, every region logged double-digit gains.”
The average increase across the nation was 1.1% between January and February and 12.0% for the past 12 months.
Lazarra said the home price growth was the highest since 2006 and is “consistent with the hypothesis that COVID has encouraged potential buyers to move from urban apartments to suburban homes.”
But he said it’s not clear whether this marks a permanent change in living preferences, or an acceleration of housing purchases due to the pandemic.
Zillow economist Matthew Speakmanbs said the “red hot” price appreciation shows no sign of cooling off.
“Already rising at a blistering pace, home price appreciation pressed higher in February as competition for housing remained red hot,” he said. “As more signs emerge that the economy’s recovery is gathering steam, a wave of eager buyers — many of them seeking their first home purchase — remain determined to find their next home.”
Comments
Market correction could have solved housing affordability
Good info. Although I'm surprised there is no word abouot the eviction and foreclosure moratoriums, which, in my opinion, have A LOT to do with it. Lifting the moratoriums could be the sign that "red hot" appreciation will "cool off." (or inflation jumps and home prices climb along with it, or interest rates increase and due to financing home prices actually go down-- yeah, there are a lot of moving pieces)
We already knew the Democrats (there's no problem big government can't fix) can't be counted on to let markets take their course, but now, even Trump ego power-hungry Republicans can't be counted on it, either, unless democrats are in power.
We throw billions of dollars at affordable housing, and billions more to keep it unaffordable. I'm moving out of state next week, in PART (only part) because housing is so expensive here. Were markets allowed to take their course, market rate housing might just be affordable housing. Am I the only person making this connection, between a market correction, and its silver lining of affordable housing? Sorry to be cruel, but I was kinda hoping.
An hour's wages can get you 8 McDoubles, but it will only get you half an hour of rent (oh, 30 seconds have passed; now it'll get you a quarter hour).
Disclaimer, though, I sure am thankful for a safety net, and that people weren't thrown out of their homes because they couldn't go to work bc of quarantine (i went into quarantine 4 times, but PTL didn't lose income over it), business closures, or promoted to teachers. Dealing with a pandemic AND an eviction/foreclosure mess would have been HORRIBLE. So I'm just complaining, about policies that I think I agree with.
Great article, important topic, and i appreciate being part of the conversation. The pandemic encouraging movement from high density homes into suburban houses, that had never even crossed my mind! Learning is so much fun.