San Diego home price gains slowed at the start of the year, but remained higher than in more than half of the country.
The San Diego metropolitan area’s home price increased 0.51% annually in January, said the S&P Cotality Case-Shiller Indices report released Tuesday. That puts it at No.7 in the 19-city index. Nearly half the cities in the index experienced annual price drops.
Compared to previous years, price growth in the San Diego metro area, which includes all of San Diego County, is muted. Prices were up 11.2% to start 2024 and 3.4% to start 2025.
Housing analysts said affordability challenges, despite lower mortgage rates, have slowed the real estate market. Many metro areas with the fastest pandemic price growth were hardest hit. Tampa prices were down 2.54% annually, followed by Denver, down 2.05% and Phoenix, down 1.59%.
Lisa Sturtevant, chief economist of Bright MLS, noted national price gains were the lowest to start the year since the early 2010s. This was despite average mortgage rates hitting their lowest levels in more than three years.
“Prospective buyers are waiting for both lower rates and slower price growth, and are increasingly asking for concessions from sellers,” she said.
There was still a large divide among regions in this month’s report with the East and Midwest being the biggest gainers. Prices were up 4.93% in the New York metro area, the nation’s largest and includes New York City, parts of New York state, much of New Jersey and Connecticut, and Long Island.
Three Midwest cities were near the top with gains: Chicago, up 4.63%, Cleveland, up 3.56%, and Minneapolis, up 2.49%.
Nicholas Godec, of the S&P Dow Jones Indices, said most markets failed to exceed the rate of inflation so, in real terms, prices were down for recent buyers. San Diego County’s annual inflation rate was 2.6% in January said the U.S. Bureau of Labor Statistics.
“Monthly price changes were slightly negative before seasonal adjustment and modestly positive after,” Godec said. “Consistent with a market that is neither recovering nor correcting sharply.”
The Case-Shiller index tracks repeat sales of identical single-family houses — and is seasonally adjusted — as they turn over through the years. It uses a three-month rolling average, which is often seen as a bellwether of the economy as a whole.
San Diego County’s median home price for single-family homes in January was $1 million, according to Attom Data Solutions. The median is the point at which half the homes sold for more and half for less.
The average 30-year, fixed-rate mortgage rate was 6.10% in the last week of January, according to Freddie Mac. It dipped briefly below 6% in February but was up to 6.55% on Tuesday morning, according to Mortgage News Daily, as confidence in the U.S. economy waned amid the Iran War.
Mortgage rates usually follow the yields on mortgage-backed securities. These bonds typically track the yield on the U.S. 10-year Treasury, often an indication of how investors feel about the U.S. economy.
“Whether the recent rate reversal proves temporary or persistent, will go a long way toward shaping price dynamics and sales activity through the spring,” said Realtor.com senior economist Anthony Smith.
Annual price growth by metropolitan area
S&P Cotality Case-Shiller Home Price Index, January 2026
New York: 4.93%Chicago: 4.63%Cleveland: 3.56%Minneapolis: 2.49%Boston: 1.32%Charlotte: 1.13%San Diego: 0.51%Los Angeles-Anaheim: 0.25%Washington, D.C.: 0.19%Atlanta: -0.13%San Francisco: -0.42%Seattle: -0.62%Miami: -0.90%Las Vegas: -0.95%Portland: -1.04%Dallas: -1.47%Phoenix: -1.59%Denver: -2.05%Tampa: -2.54%
National: 0.91%