The Case-Shiller Index for San Diego was flat for the last three months of 2014.
But when rates dropped back into the 3.50% to 3.75% range in January, the market surged and both sales and prices picked up.
Here are the San Diego readings for 2015:
The Case-Shiller Index is a lagging indicator, and its reflection of buying decisions made in December-February seems like ancient history today.
“Home prices are currently rising more quickly than either per capita personal income (3.1%) or wages (2.2%), narrowing the pool of future home-buyers.
All of this suggests that some future moderation in home prices gains is likely,” he said. “Moreover, consumer debt levels seem to be manageable.”