The west continues to win when it comes to real estate, and for buyers of Orange County and Los Angeles luxury homes, prices continue to rise. According to the most recent S&P/Case-Shiller Home Price Index, September was a banner year for Southern California. Here, home prices climbed tremendously, increasing 21.8 percent year-over-year. This makes it the largest gain in nearly eight years and another sign that real estate is once again a viable investment in the Southland.
Orange County real estate bested nearly all other major U.S. metro locations that Case Shiller surveys, coming in third as part of this monthly report. Around the U.S., home prices rose in all 20 cities in the Home Price Index with an average of 11.2 percent.
David M. Blitzer, S&P Index Committee chairman, said: “Housing continues to emerge from the financial crisis. The proportion of homes in foreclosure is declining and consumers’ balance sheets are strengthening.”
Experts point out that the recent gains in home prices have pushed the market back to summer 2004 levels, which is about two years before the market peaked. In Orange County and Los Angeles, home prices have been rising routinely for the last year-and-a-half. On an annual basis, September marked the 15th consecutive month that prices continued to rise.
The Strength of the West
The Case-Shiller report came right out and said that the West is the leader when it comes to rising home prices. While other real estate companies like CoreLogic, DataQuick and the California Association of Realtors (CAR) also noted gains, Case-Shiller noted the highest rate of appreciation for single-family residences.
But real estate experts point out that seasonal changes have helped cool the market to a certain degree, and 2014 may not bring about the same kind of buying frenzies that buyers realized earlier this year. In October and November, home sales slowed a bit, which is common for this time of year. There has also been a slight decline in the number of Los Angeles luxury homes that are currently listed for sale.
Steve Thomas of ReportsOnHousing.com went on to say: “The market has changed. Sellers new to the market should no longer expect to sell within the first week. … And, for all of those home owners waiting to come on the market in the spring of 2014, do not expect a repeat of this year’s rapid appreciation, multiple offers, and total seller control of the market. Buyers are no longer willing to pay massive premiums over the most recent comparable sales.”
Around the West, places like Las Vegas, San Francisco and San Diego posted the largest gains in home prices at 29.1 percent, 25.7 percent and 20.9 percent respectively.
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Homes in Los Angeles, California, between $3,000,000 and $4,000,000
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(all data current as of 10/22/2017)
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