San Diego home prices drop - CBS News 8 - San Diego, CA News Station - KFMB Channel 8

San Diego home prices drop

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SAN DIEGO (CNS) - San Diego home prices declined 0.3 percent in October from the month before, according to the Standard & Poor's Case-Shiller Home Price Indices released Tuesday.

San Diego was one of eight major real estate markets to experience a pullback in prices from the prior month, according to the indices.

Home costs were stronger when measured on an annual basis, up 6.2 percent from October of last year.

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

San Diego's index stood at 215.75 in October -- meaning that home values more than doubled over almost 16 years. The increase is the third-fastest in the U.S., behind Los Angeles and San Francisco.

The composite 20-city index was at 182.83 in October, up 0.1 percent for the month and 5.5 percent higher since October 2014.

"Generally good economic conditions continue to support gains in home prices," said David Blitzer, managing director and chairman of the Index Committee at S&P Dow Jones Indices.

"Among the positive factors are consumers' expectations of low inflation and further economic growth, as well as recent increases in residential construction, including single-family housing starts," Blitzer said.

He said the recent hike in the federal funds rate by the Federal Reserve probably won't lead to "runaway mortgage interest rates" for those contemplating buying a home.

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