Summer may be winding down, but the summer rally in the size-adjusted median price of San Diego homes continued another month. From July to August, the median price per square foot rose .7 percent for detached homes, 1.3 percent for condos, and .8 percent in aggregate.
This was not much of a month, relatively speaking, but it turns out that the mid-2009 rally as a whole has been unusually powerful.
A while back I wrote about the fact that spring-summer price rallies tend to take place even during multi-year price declines. As the following graph from that article shows, a spring or summer increase in home prices doesn’t rule out the possibility that a longer-term price decline is still underway:
What’s interesting is that the price increase that’s taken place since earlier this year has been unusually strong compared to spring rallies past.