Home price appreciation is slowing across many top metros in the nation. In fact, according to the S&P Case-Shiller Price Index, the drop to 4.8 from 5.5 is the first month-over-month decrease since November 2013.This drop in appreciation isn’t just across the U.S… it’s also affecting many areas of Southern California. From September to October, Orange County home prices fell -0.5%.
This appreciation has literally been slashed from 2013 levels. According to RealtyTrac, in October 2013, home price appreciation in Riverside was an astounding 26%, Los Angeles had an incredible 24%, and San Diego came in at a hefty 19%. When you look at these numbers and compare them to where we’re at now, you can see just how far the market has come in its return to normal.
These lower prices are helping to make more dreams of becoming a homeowner, a reality. In fact, Q3 mortgage originations reversed a year-long trend when they rose for the first time in four quarters. And according to the Federal Bank of New York, mortgage debt increased $35 billion in the third quarter…meaning that more credit is being extended to homebuyers.