Home prices continue to increase in California’s metro regions, but there are signs of slowing, the Los Angeles Times reports.

The S&P/Case-Shiller 20-city index, which tracks home prices in major U.S. metropolitan regions, rose 0.7% in September from one month earlier and 13.3% year-over-year. Some of the largest gains were found in California. Prices rose:

  • 25.7% in San Francisco;
  • 21.8% in Los Angeles; and
  • 20.9% in San Diego.

Although prices are still in an upswing, month-to-month growth decelerated in 19 of the 20 cities indexed. Year-over-year, first tuesday reports sales volume is down 7%.

It appears that the recovery honeymoon is quickly winding down in California. The boost that housing has seen from institutional investors and fly-by-night speculators is surely reaching its inevitable end.

A buyer’s market is on the horizon – but finding the buyers to make those deals may begin to pose a problem…