Monthly home price increases slowing

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housing-money SAN DIEGO (CNS) – Housing prices in San Diego rose 1.8 percent between July and August, and 21.5 percent between August 2012 and the same month this year, according to the Standard & Poor’s Case-Shiller Home Price Indices released Tuesday.

The local performance reflected a national trend of slowing monthly increases while annual gains remain strong, S&P reported.

The indices took the median price of a house in 20 major markets around the U.S. in January 2000, assigned them a value of 100, and track their subsequent rise and fall.

In August, San Diego’s index was 191.78, meaning an almost 92 percent appreciation in housing values over nearly 14 years. The rise is the third fastest in the U.S., following Los Angeles and Washington, D.C.

The 1.8 percent monthly hike for San Diego was one of the smallest gains of the year, which has mainly seen jumps from one month to another of more than 2 or 3 percent.

David Blitzer, chairman of the Index Committee at S&P Dow Jones Indices, said the rate of increase in housing prices in the U.S. peaked in April.

“Since then, home prices continued to rise, but at a slower pace each month,” Blitzer said. “This month 16 cities reported smaller gains in August compared to July. Recent increases in mortgage rates and fewer mortgage applications are two factors in these shifts.”

Annual comparisons were better. Nationally, both Case-Shiller indices — one tracks 10 markets and the other 20 — rose 12.8 percent between August of 2012 and 2013.

“Both composites showed their highest annual increases since February 2006,” Blitzer said. “All 20 cities reported positive year-over-year returns. Thirteen cities posted double-digit annual gains.”

S&P said home prices around the country are at about mid-2004 levels, but remain more than 20 percent below the summer 2006 peaks.