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…