Los Angeles-Long Beach-Glendale Home Prices Up 6.2% Year Over Year, According to First American Data & Analytics Monthly Home Price Index Report
14 November 2023 - 11:00PM
Business Wire
—‘Suppliers Strike’ Squeeze on Supply Sends
National House Prices to Another Record—
First American Data & Analytics, a leading national
provider of property-centric information, risk management and
valuation solutions and a division of First American Financial
Corporation (NYSE: FAF), today released its October 2023 Home
Price Index (HPI) report. The report tracks home price changes
less than four weeks behind real time at the national, state and
metropolitan Core-Based Statistical Area (CBSA) levels and includes
metropolitan price tiers that segment sale transactions into
starter, mid and luxury tiers. The full report can be found
here.
Los Angeles-Long Beach-Glendale HPI
In the Los Angeles-Long Beach-Glendale CBSA, home prices
increased by 6.2 percent in October compared with a year ago and
increased by 0.3 percent compared with September 2023. See below
for price-tier data.
October 2023 National HPI Highlights
The First American Data & Analytics’ non-seasonally-adjusted
(NSA) HPI showed that nationally in October1 2023:
- Between September 2023 and October 2023 house prices increased
0.4 percent.
- House prices increased 7.0 percent between October 2022 and
October 2023.
- House prices reached a new peak for the seventh month in a row
in October 2023.
- House price growth reported in last month’s HPI for August 2023
to September 2023 was revised down 0.2 percent, from 0.7 percent to
0.5 percent.
“While the surge in long-term bond yields drove mortgage rates
to 8 percent, sellers continued their ‘supplier’s strike’ and
continued to hold back housing supply. Preliminary October sale
prices continue to indicate that the lack of supply is constraining
the market more than sinking affordability, which reached another
record low last month,” said Mark Fleming, chief economist at First
American. “Nationally, when you can’t buy what’s not for sale, even
if you can afford it with an 8 percent mortgage, it’s no surprise
that house price appreciation continued for a seventh straight
month.”
Year-Over-Year Price-Tier Data for the Los Angeles-Long
Beach-Glendale Metro Area:
October 2022 to October 2023
The First American Data & Analytics HPI segments home price
changes at the metropolitan level into three price tiers based on
local market sales data: starter tier, which represents home sales
prices at the bottom third of the market price distribution;
mid-tier, which represents home sales prices in the middle third of
the market price distribution; and the luxury tier, which
represents home sales prices in the top third of the market price
distribution.
CBSA
Starter
Mid-Tier
Luxury
Los Angeles-Long Beach-Glendale
6.2%
7.2%
4.7%
“While resilient first-time home buyer demand and ongoing supply
shortages kept price growth in the starter tier of the market
strong, the luxury end of the market surprised with unexpected
surges in price appreciation," said Fleming. “Luxury-tier buyers
typically already own homes and are trading up, despite taking on a
mortgage rate on the home they purchase that is well above the rate
on the home they sell. The robust luxury trade-up demand indicated
by strong appreciation in markets like Anaheim, San Diego,
Charlotte and Atlanta is a reminder that the lifestyle and
non-financial reasons why people buy homes often supersedes the
non-financial reasons why people buy homes."
October 2023 House Price State2 Highlights
- The five most populous states experienced the following
year-over-year growth in the HPI:
Pennsylvania (+8.1 percent), Florida (+4.4 percent), California
(+4.0 percent), Texas (+3.8 percent), and New York (+2.9
percent).
- There was one state with a year-over-year decrease in the HPI: South Dakota (-5.1
percent).
- Full 50-state HPI data is available here.
Visit the First American Economic Center for more research on
housing market dynamics.
Next Release
The next release of the First American Data & Analytics
House Price Index will take place the week of December 11,
2023.
First American Data & Analytics HPI Methodology
The First American Data & Analytics HPI report measures
single-family home prices, including distressed sales, with indices
updated monthly beginning in 1980 through the month of the current
report. HPI data is provided at the national, state and CBSA levels
and includes preliminary index estimates for the month prior to the
report (i.e. the preliminary result of July transactions is
reported in August). The most recent index results are subject to
revision as data from more transactions become available.
The HPI uses a repeat-sales methodology, which measures prices
changes for the same property over time using more than 46 million
paired transactions to generate the indices. In non-disclosure
states, the HPI utilizes a combination of public sales records, MLS
sold and active listings, and appraisal data to estimate house
prices. This comprehensive approach is particularly effective in
areas where there is limited availability of accurate sale prices,
such as non-disclosure states. Property type, price and location
data are used to create more refined market segment indices. Real
Estate-Owned transactions are not included.
Disclaimer
Opinions, estimates, forecasts and other views contained in this
page are those of First American’s Chief Economist, do not
necessarily represent the views of First American or its
management, should not be construed as indicating First American’s
business prospects or expected results, and are subject to change
without notice. Although the First American Economics team attempts
to provide reliable, useful information, it does not guarantee that
the information is accurate, current or suitable for any particular
purpose. © 2023 by First American. Information from this page may
be used with proper attribution.
About First American Data & Analytics
First American Data & Analytics, a division of First
American Financial Corporation, is a national provider of
property-centric information, risk management and valuation
solutions. First American maintains and curates the industry’s
largest property and ownership dataset that includes more than 8
billion document images. Its major platforms and products include:
DataTree®, FraudGuard®, RegsData®, First American TaxSource™ and
ACI®. Find out more about how First American Data & Analytics
powers the real estate, mortgage and title settlement services
industries with advanced decisioning solutions at
www.FirstAmDNA.com.
About First American
First American Financial Corporation (NYSE: FAF) is a
premier provider of title, settlement and risk solutions for real
estate transactions. With its combination of financial strength and
stability built over more than 130 years, innovative proprietary
technologies, and unmatched data assets, the company is leading the
digital transformation of its industry. First American also
provides data products to the title industry and other third
parties; valuation products and services; mortgage subservicing;
home warranty products; banking, trust and wealth management
services; and other related products and services. With total
revenue of $7.6 billion in 2022, the company offers its products
and services directly and through its agents throughout the United
States and abroad. In 2023, First American was named one of the 100
Best Companies to Work For by Great Place to Work® and Fortune
Magazine for the eighth consecutive year and was named one of the
100 Best Workplaces for Innovators by Fast Company. More
information about the company can be found at www.firstam.com.
1 The most recent index results are subject to revision as data
from more transactions become available. 2 The HPI for
non-disclosure states and markets that fall within non-disclosures
states are not included in this month’s HPI report.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231114458861/en/
Media Contact: Marcus Ginnaty Corporate Communications
First American Financial Corporation (714) 250-3298
Investor Contact: Craig Barberio Investor Relations First
American Financial Corporation (714) 250-5214
First American (NYSE:FAF)
Historical Stock Chart
From Apr 2024 to May 2024
First American (NYSE:FAF)
Historical Stock Chart
From May 2023 to May 2024