San Diego Home Prices Decline 2.1% YoY in April Amid National Slowdown

San Diego-Chula Vista-Carlsbad home prices declined 2.1% YoY in April, according to First American's HPI report. National home prices increased 0.4% MoM but slowed to their lowest level since 2012 due to high mortgage rates and increased inventory. Starter home prices in the San Diego-Chula Vista-Carlsbad region decreased 3.5%, while mid-tier and luxury tiers saw reductions of 0.3% and 1.3%, respectively. Markets like Pittsburgh, Baltimore, and St. Louis are experiencing strong growth in starter home prices due to affordability and limited supply.

U.S. house price growth continued to decelerate from March to April 2025, according to the latest Home Price Index (HPI) report from First American Data & Analytics [1]. Despite reaching record highs, the annual growth rate slowed to its lowest level since 2012. From March to April 2025, house prices rose by 0.4% on a non-seasonally adjusted basis, and year-over-year, prices were up by 2.0% [1].

The national home prices are now 57.2% higher compared to pre-pandemic levels in February 2020 [1]. Mark Fleming, Chief Economist at First American Financial Corp., attributed the deceleration to persistently high mortgage rates and increased inventory levels, which have tempered demand and boosted supply [1]. The slowed price growth is encouraging for potential homebuyers, as it enhances their purchasing power from income increases [1].

Regional variations were notable. San Diego-Chula Vista-Carlsbad home prices declined 2.1% year-over-year (YoY) in April, according to the HPI report [1]. Starter home prices in this region decreased 3.5%, while mid-tier and luxury tiers saw reductions of 0.3% and 1.3%, respectively [1]. Conversely, markets like Pittsburgh, Baltimore, and St. Louis experienced strong growth in starter home prices due to affordability and limited supply [1]. Pittsburgh saw a 7.6% YoY increase in starter home prices, while Baltimore and St. Louis recorded increases of 5.7% and 4.9%, respectively [1].

In contrast, some core-based statistical areas (CBSAs) saw HPI declines. Oakland, California, experienced a 7.6% YoY decrease, while Tampa, Florida, saw a 4.8% decline [1]. San Diego and Denver also reported reductions of 2.1% and 1.8%, respectively [1].

First American Data & Analytics plans to release its next HPI report in mid-June 2025, providing further insights into the evolving housing market dynamics [2].

References:
[1] https://nationalmortgageprofessional.com/news/us-house-price-growth-continues-slowdown
[2] https://www.gurufocus.com/news/2876775/house-prices-nationally-continue-to-decelerate-according-to-first-american-data-analytics-monthly-home-price-index-report-faf-stock-news