San Diego Case-Shiller Index, Not Seasonally Adjusted

In 2024, the big action was in the first quarter, and it cooled off quickly after that.

The index rose 8.4% in the first five months, then gave back 3.1% the rest of the way. It looks like we’ll be lucky to hit half of that 8.4% gain in the early months of 2025, and probably give it all back by 2026.

Welcome to Flat City.

~~~~~~~~~~~~~~~~~~~

“Even with mortgage rates remaining in the mid-6% range and affordability challenges lingering, home prices have shown notable resilience,” said Nicholas Godec, CFA, CAIA, CIPM, Head of Fixed Income Tradables & Commodities at S&P Dow Jones Indices. “Buyer demand has certainly cooled compared to the frenzied pace of prior years, but limited housing supply continues to underpin prices in most markets. Rather than broad declines, we are seeing a slower, more sustainable pace of price growth.”