Cost of housing in San Diego third fastest rising in the U.S.

SAN DIEGO (KUSI) – Home prices in San Diego rose 1.1 percent between June and July and 5.4 percent since July 2014, according to numbers released Tuesday from the Standard & Poor’s Case-Shiller Home Prices.

Only two of the 20 major cities in the U.S. outperformed San Diego’s monthly climb in the cost of housing, according to the indices. However, 10 cities outdid the annual increase.

The indices were created by taking the cost of housing in the 20 cities in January 2000, assigning them a value of 100, and tracking their subsequent rise and fall.

San Diego’s index reading in July was 214.68, representing more than a doubling of value in 15-plus years. Only Los Angeles and San Francisco have seen home values rise at a faster rate.

Nationally, the 20-city index rose 0.6 percent in July, and 5 percent for the year, to 181.9. A 10-city index inched ahead 0.6 percent in July and posted a 4.5 percent annual hike to 196.85.

"Prices of existing homes and housing overall are seeing strong growth and contributing to recent solid growth for the economy,” said David Blitzer, managing director and chairman of the Index Committee at S&P Dow Jones Indices.

He noted that most of the strength has been in western states. According to the indices, the strongest annual increases in home values have taken place in San Francisco, Denver, Dallas and Portland.

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