San Diego home price gains were below the nationwide average in June and failed to keep up with inflation for the 19th month.<\/p>\n
The San Diego metropolitan area\u2019s home price increased 1.05% annually in June, according to the S&P Cotality Case-Shiller Indices report released Tuesday. Annual inflation in the San Diego metro area<\/a>, which includes all of San Diego County, has ranged from 2.5% to 4% for the last two years.<\/p>\n U.S. average annual price gains were 1.5% in June, failing to keep up with inflation for 13 months. Seven of the 20 cities on the index had declining prices.<\/p>\n \u201cThe housing market remains under pressure, with 30-year mortgage rates holding near 6.5% in June,\u201d said Rebecca Kaufman, an associate director at S&P. \u201cAs financing costs are kept high for prospective buyers, current homeowners remain reluctant to give up the low mortgage rates secured in prior years.\u201d<\/p>\n There are several markets bucking the trend, notably Chicago, which has seen an annual price gain of 6.9%. It was followed by the metropolitan areas of New York, up 4.79%, and Cleveland, up 4.13%.<\/p>\n Seattle saw home prices decline 1.95%, the lowest on the index. It was followed by Las Vegas, down 1.9%, and Denver, down 1.24%. Detroit was left off the index because of reporting delays.<\/p>\n The Case-Shiller index tracks repeat sales of identical single-family houses \u2014 and is seasonally adjusted \u2014 as they turn over through the years. It uses a three-month rolling average and is often seen as a bellwether of the economy as a whole.<\/p>\n San Diego County\u2019s median home price for single-family homes has stayed around $1 million since the start of the year<\/a>, according to Attom Data Solutions. The median is the point at which half the homes sold for more and half for less.<\/p>\n Anthony Smith, senior economist at Realtor.com<\/a>, noted national home prices had posted four straight months of gains, albeit modest ones below the inflation rate. Yet he said price gains face headwinds from interest rates.<\/p>\n \u201cIf financing costs stay elevated into the fall,\u201d Smith said, \u201cJune\u2019s pickup in price growth may prove difficult to sustain.\u201d<\/p>\n The average 30-year, fixed-rate mortgage rate hit a low this year of 5.98% in late February, according to Freddie Mac<\/a>. It was up to an average 6.49% in the last week of June, and 6.65% at the end of last week.<\/p>\n