February 28, 2025
Home prices in San Diego rose slightly in December after five months of decline, according to the authoritative Case Shiller Index released Tuesday.
The increase was small — just 0.06% — but it came amid indications that the nationwide slowdown in home price appreciation is over.
“Home prices stalled during the second half of the year with markets in the West dropping the fastest,” said Brian Luke of S&P Dow Jones Indices. “Previous strongholds like San Diego and Tampa experienced declines of 2.9% and 2.7%, respectively, during the second half of the year.
With December’s uptick, San Diego home prices ended the year 5.5% higher, versus the national average of 3.9%.
“The S&P CoreLogic Case-Shiller Index continues to highlight the upward trend of home prices nationally,” Luke said. “Through this recent market cycle, the ability of Americans to grow wealth by participating in the upside of the U.S. housing market, particularly if done through a leveraged position by securing a mortgage, has proven to be historically beneficial.
Despite the end-of-year improvement, Zillow cautioned that home price increases are likely to be moderate in 2026.
“Buyers should see cooler home price appreciation and a less competitive environment this spring,” said Zillow’s Chief Economist Kara Ng.
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