Southern California house prices see 5% to 7% gains in August, CoreLogic reports

Southern California house prices continued to show steady gains from the previous year, although the pace of appreciation appears to be slowing in the face of rising monthly payments, the CoreLogic Home Price Index shows.

Los Angeles County continued to see the biggest gains in the region: House prices there rose an average of 7.4 percent in the 12 months ending in August, according to numbers released Tuesday, Oct. 2.

The Inland Empire saw price gains of 6.7 percent, while in Orange County, house prices rose 5.5 percent.

CoreLogic’s HPI is the third key indicator for August. Previous reports by CoreLogic and the California Association of Realtors showed that price gains continue in the face of declining home sales as higher prices and mortgage rates make homes increasingly unaffordable.

CoreLogic’s HPI shows that although prices still are rising, gains are getting smaller.

Los Angeles County’s increase in August was the smallest in 10 months, and Orange County’s was the smallest in 11 months. Inland Empire residents haven’t seen appreciation this low in 14 months.

Nationwide, house price gains also are slipping. U.S. prices increased by 5.5 percent year over year from August 2017.

“National appreciation in August was the slowest in nearly two years,” said Frank Nothaft, CoreLogic chief economist. “The rise in mortgage rates this summer to their highest level in seven years has made it more difficult for potential buyers to afford a home.”

Courtesy of The Orange County Register

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