Case-Shiller: San Diego Home Prices Drop Back to YoY Losses

It’s time for our monthly check-in of the S&P/Case-Shiller Home Price Indices (HPI). The Case-Shiller data is generally considered to be the most reliable measure of overall home price changes for a region, since they only consider repeat sales of homes when calculating their index, instead of looking at all the homes that sold in a given month.

For the full source data behind this post, hit the S&P/Case-Shiller website. For a more detailed explanation of how the Case-Shiller Home Price Index is calculated, check out their methodology pdf. Also remember that the data released on the last Tuesday of a given month is for the period two months prior (i.e. – February data is released in April).

Here are the basic Case-Shiller stats for San Diego County as of February:

February 2011
Month to Month: Down 1.3%
Year to Year: Down 1.8%
Prices at this level in: December 2002
Peak month: November 2005
Change from Peak: Down 38.1% in 63 months
Low Tier: Under $307,801
Mid Tier: $307,801 to $467,069
Hi Tier: Over $467,069

Nineteen of the twenty metro areas tracked by Case-Shiller saw a decrease in their HPI between January and February (the same as December to January). Detroit of all places was the only city that saw a month-to-month gain (up 1.0%).

Here’s a look at the latest local tiered data, back through 2000:


And here’s a closer look at the recent changes, with the vertical and horizontal axes zoomed in to show just the last year:


All three of San Diego’s price tiers took a hit in February, but the low tier fell the furthest. Month to month, the low tier was down 2.7%, the middle tier fell 1.5%, and the high tier decreased 0.5%.

Here’s a chart of Case-Shiller HPIs for all the markets that Redfin serves:


Here’s our peak decline chart, in which we line up the peak Case-Shiller HPI value for each of Redfin’s markets, so we can see how long each market has been declining, and how much it has dropped from the peak.


Ten of the twenty cities tracked by Case-Shiller hit another new post-peak low as of February. The 20-city composite index sits just barely above its April 2009 post-peak low (139.27 in February vs. 139.26 in April 2009).

Methodology: The Case-Shiller index tracks price changes in sets of homes of similar size and style to better determine changes in what people are willing to pay for the same home over time. If data is available from an earlier transaction for the same home, the two sales are paired and treated as a “repeat sale.” Repeat sales that are too far apart, sales between family members, lot splits, remodels, and property type changes (e.g. from single-family to condos) are excluded from the calculations. All remaining repeat sales are totaled together and weighted based on the time between each sale, then the data for the most recent three months is averaged together to create a given month’s index value (i.e. – September’s index represents the average of the data from July through September).

The three price tiers plotted in the charts below simply represent the top, middle, and bottom third of all sales, based on the initial sale price. In other words, if there were 3,000 sales in the three-month period, 1,000 of them would be in the low tier, 1,000 in the middle tier, and 1,000 in the high tier, by definition.

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