California Home Prices Stall as Markets Diverge

Statewide in California, housing price appreciation was essentially flat in July compared to a year ago, according to the First American Home Price Index, which was released this week.

"However, that masks the differences across markets," according to Mark Fleming, Chief Economist at First American Data & Analytics.

Prices are rising modestly in markets such as Los Angeles and Orange County compared to a year ago, while San Diego is just about flat.

"The recent dip in prices in the Bay Area has passed and the very tight inventory level there suggests price acceleration to come," Fleming told GlobeSt.com.

Oakland-Fremont-Berkeley, CA saw overall single-family home prices decrease 1.9% year over year. The area's single-family home prices in the starter price segment declined 1.9% year-over-year. The market's mid-tier price segment fell 3.4% year over year, and its luxury price segment fell 1.3% year over year.

The Anaheim-Santa Ana-Irvine market saw overall single-family home prices improve 2.4% year over year; its single-family home prices in the starter price segment didn't move; its single-family home prices in the mid-tier price segment improved 2.6% year over year; and its luxury price segment improved 3.9% year over year.

In Los Angeles-Long Beach-Glendale, overall single-family home prices improved 2.9% year over year; single-family home prices in the starter price segment improved 2.5% year over year; the mid-tier price segment improved 3.8% year over year; and the luxury price segment improved 4.1% year over year.

The First American Data & Analytics HPI groups home sales into three tiers based on local market sales prices. Starter-tier homes represent the lower third of the local price distribution, mid-tier homes represent the middle third, and luxury homes represent the upper third.

The HPI tracks home price changes less than four weeks behind real time, making it one of the timeliest measures of U.S. home price trends available.