SAN DIEGO — San Diego home price gains slowed to their lowest level to start 2025 in almost two years.

In January, the San Diego metropolitan area’s home price increased 3.39% annually, said the S&P Case-Shiller Indices report released this week. The highest gains in the 20-city index were in the New York metro area, at 7.75%, and Chicago, at 7.52%

San Diego metro, which includes all of San Diego County, was ranked 11th in the 20-city index. That was its lowest showing since summer 2023.

Metros across the nation, not just San Diego, have showed slowed price gains over the past year.

“Higher mortgage rates, along with high home prices, have exacerbated affordability challenges,” said Bright MLS chief economist Lisa Sturtevant, “and led to slower home price appreciation.”

The Case-Shiller Indices track repeat sales of identical single-family houses — and are seasonally adjusted — as they turn over through the years. The median single-family home price in San Diego County was $1 million in January, said Redfin.

Sturtevant said that lower mortgage rates probably won’t mean home prices will go up. She said data shows the number of homes for sale has been increasing, calming competition that would normally push up prices.

At the end of January, the average interest rate for a 30-year, fixed-rate mortgage was 6.95%, according to Freddie Mac. It hit 7.04% in mid-January, its highest point since July.

Nothing about the latest home price data gave economists any indication that things would get easier for low- to-middle class home shoppers.

“Without mortgage rate or home price relief, housing affordability is now a binding barrier to most potential homebuyers,” said Zillow chief economist Skylar Olsen, “especially for those buying for the first time and unable to capitalize on these continually appreciating home prices.”

A February study from mortgage website LendingTree said San Diego had one of the lowest homeownership rates for people under the age of 30 in the nation. San Diego ranked No. 45 out of 50 metros with 1.7% of homeowners being under 30, unlike the top market for young folks, Nashville, Tenn., with 9.4%.

Tampa, Fla., continues to be the only metro area on the list with dropping prices, down 1.5% in a year. Other sluggish metros were Dallas, up 1.34%, and Denver, up 1.87%.

“Sunbelt markets that experienced sharp run-ups earlier in the cycle — like Tampa and Phoenix — have seen the most pronounced slowdowns,” wrote Nicholas Godec, a senior director at S&P Dow Jones Indices.

Annual price growth by metropolitan area

S&P/Case-Shiller Home Price Index, January 2025

New York: 7.75%, Chicago: 7.52%, Boston: 6.55%, Cleveland: 6.45%, Detroit: 5.73%, Las Vegas: 5.49%, Seattle: 5.47%, Washington, D.C.: 5.1%, Los Angeles-Anaheim: 3.98%, Minneapolis: 3.57%, San Diego: 3.39%, Charlotte: 3.32%, Miami: 3.32%, San Francisco: 3%, Portland: 2.83%, Phoenix: 2.74%, Atlanta: 2.4%, Denver: 1.87%, Dallas: 1.34%, Tampa: -1.51%

National: 4.08%

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