Home prices in the Los Angeles metro area continued to climb in November, posting a 21.6 percent gain year-over-year, according to the S&P/Case-Shiller Home Prices Indices.
The increase in L.A.’s home prices was above the national average increase of 14 percent, said Craig Lazzara, senior director of index investment strategy at S&P Dow Jones Indices. He told KPCC there’s nothing in the data that points to a downturn in prices.
“What we’ve seen is the recovery is solid and has strengthened over that entire 12-month period,” Lazzara said.
The S&P/Case-Shiller Home Indices measures the value of single family housing across 20 U.S. metro areas. The data was the best November performance for the indices since 2005. All 20 cities showed year over year gains, with the top three being Las Vegas, San Francisco, and Los Angeles.
The L.A. metro area is benefiting from an improvement in the labor market and fewer distressed homes for sale, said Stuart Gabriel, director of the Ziman Center for Real Estate at UCLA. Distressed homes include those sold in a short sale or after foreclosure.
There is also an issue with the supply of homes on the market. Realtors and analysts have told KPCC that fewer homes for sale and a high demand from buyers, has driven prices up. Gabriel said he expects a new supply of homes to come on the market in the next year.
“This will clearly take some pressure off of prices,” he said.
The S&P/Case-Shiller Home Indices also noted that the national reading on home prices declined 0.1 percent in November from October in its 20 metro areas, but L.A. was one of nine cities that showed an increase in November from October.