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As anticipated, the Case-Shiller index of San Diego home prices fell in August.
The declines were fairly mild and were uniform across the price tiers, with the low tier falling .5 percent, the middle tier .7 percent, and the high tier .6 percent. In aggregate, home prices by this measure fell .6 percent from the prior month.
The following graph shows that August was the first month in which the aggregate index declined since the price low back in April 2009:
This decline is not a surprise. As noted in the opening sentence, it was forecast by other August data that was available early last month. More generally, the recent increase in inventory and post-tax-credit decline in sales have combined to remove the upward pressure that had previously been lifting prices. Given recent trends in supply and demand, pricing is likely to remain weak for the time being.
Please contact Rich Toscano at rtoscano@pcasd.com and follow him on Twitter at http://twitter.com/richtoscano.